Are Supervisors on Third-Party Payroll Covered by the Contract Labour Act? Let's Discuss

Hi,

I would like to know, suppose we have 20 employees on the third-party payroll, all at the supervisor grade with wages ranging from 12k to 18k, will these employees be covered under the Contract Labour (Regulation and Abolition) Act, 1970?

Please help.

Regards,
Amitesh Nigam

Hi,

As per your mail, twenty or more workmen are employees to every contractor who employs or who employed. According to the definition, they are covered under the CL act, even though their wages are high.

Regards,
Rajashekar
9701474442

Hi, As per your mail,

- Twenty or more workmen are employees to every contractor who employs or who employed, as per the definition, they are covered under CL act, even though their wages are high.

Regards,
Rajashekar
9701474442

Thanks a ton, Rajashekar, for the reply, but the law says the following:-

Explanation.- For the purpose of sub-clause (iii) of this clause, expressions "mine", "owner", and "agent" shall have the meanings respectively assigned in clause (j), clause (l), and clause (c) of sub-section (1) of Section 2 of the 'Mines Act, 1952 (35 of 1952);

(h) "wages" shall have the meaning assigned to it in clause (vi) of Section 2 of the Payment of Wages Act, 1936 (4 of 1936);

(i) "workman" means any person employed in or in connection with the work of any establishment to do any skilled, semi-skilled, or unskilled manual, supervisory, technical, or clerical work for hire or reward, whether the terms of employment are express or implied, but does not include any such person:

(A) who is employed mainly in a managerial or administrative capacity; or

(B) who, being employed in a supervisory capacity, draws wages exceeding five hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature.

And the amendment says

Section 2: Definition - An explanation shall be added in clause c) of subsection (1) of Section 2 as below: Explanation - The word contractor includes both a licensed and a non-licensed contractor. This section will read as: c) 'contractor', in relation to an establishment, means a person who undertakes to produce a given result for the establishment, other than a mere supply of goods or articles of manufacture to such establishment, through contract labor or who supplies contract labor for any work of the establishment and includes a subcontractor. Explanation - The word contractor includes both a licensed and a non-licensed contractor. Section 2: i) This ceiling of Rs. 500/- shall be removed. A suitable amount be replaced, determined by the appropriate government consistent with the living index and the sale of inflation.

Hence, I would like to understand this amendment.

(i) "Workman" means any person employed in or in connection with the work of any establishment to do any skilled, semi-skilled, or unskilled manual, supervisory, technical, or clerical work for hire or reward, whether the terms of employment be express or implied.

Hi,

You have taken 20 so-called supervisors on the rolls of a third party (nothing but a contract). In turn, the third party obtained a license under the Contract Labour (Regulation and Abolition) Act, 1970. As per the Contract Labour (Regulation and Abolition) Act, if you would like to terminate the employees whom you engaged under the above act, you have to give 3 days' prior notice before termination.

Mahesh

Amitesh,

You need to first decide whether the CL(R&A) 1970 Act is applicable to you. It can become applicable only when you have more than 100 employees on your role. Please review the applicable provisions for Registration by Employer and License by Contractor under the Act. In case of any confusion, please feel free to call at 09822394170.

Regards

The amendment states that the Rs. 500 ceiling is no longer applicable, and this amount will be determined by the appropriate government based on the cost of living index in that area.

There are two governments: the central government and the state government. The appropriate government varies from organization to organization. If an organization operates in multiple states, the central government would be considered the appropriate government. For any organization owned by the central government, the appropriate government would also be the central government. Otherwise, the state government will be deemed the appropriate government.

These respective governments establish regulations for all acts, and these rules are consequently applicable.

Dear Friend,

The Contract Labour Act is not applicable in the case of outsourcing white-collar employees. The definition of "worker" is quite clear as you have mentioned in the earlier post.

Regards