Navigating Labor Contracts with GAIL: Can We Hire on Contract and Avoid Future Issues?

Dear All,

I would like to introduce myself. I am Praveen Vahinipati, working as an HR Officer in Transport Corporation of India Ltd. I am facing a critical problem, and I urgently need help.

We have a transportation contract with GAIL (Gas Authority of India Ltd), for which we engage some laborers for loading and unloading materials. The issue now is that GAIL requires these laborers to be our (TCI's) employees, with all statutory requirements fulfilled by us.

My questions are: Can we engage these laborers on a contractual basis? Are there any potential problems upon their termination? Under what conditions can laborers request to become permanent employees of TCI? How can we defend ourselves against these issues?

Please assist me as soon as possible, as this is extremely urgent.

Regards,
Praveen

Dear Praveen,

You can engage labor on a contract basis. Basically, it will be a subcontract. In this case, you have to be the principal employer. You have to register yourself with labor authorities to hire contract labor, and the contractor will take a license to do so. They will be employees of the contractor and do not have any relation with TCI.

Thanks,
J.S. Malik

Dear Sir,

GAIL is not allowing us to engage labor through subcontractors. In this case, what should we do?

Regards,
Praveen

Dear Praveen,

In that case, you keep them on your roll and to avoid all these problems, issue them fixed-term appointments for 6 months, and make a rotation, changing after every 6 months.

Thanks,
J. S. Malik