How Can We Retain Our Security Guards Without Breaching Contract Laws?

Dear Seniors,

We have three security guards who are hired as contract laborers. They are nearing completion of one year with us. According to contract law, an employee who has worked for 240 days can claim permanence. In this scenario, we would be required to change the security guards. However, as they are dedicated and competent, we do not wish to dismiss them. Instead, we are contemplating showing on paper that they were not continuously employed with us. How should we handle this situation?

Additionally, these security guards are currently paid a fixed wage of Rs 3500/- for 31 days. The contractor has mentioned that if we were to transition them to minimum wages, their pay would need to be calculated for 26 days, with overtime compensation paid accordingly. We are also providing them with PF and ESI benefits. At present, these security guards work from Monday to Sunday for 8 hours each day.

I would appreciate your insights on the following matters:
- Ensuring compliance with minimum wage regulations and addressing overtime payments for work exceeding 8 hours
- Establishing a record that reflects their employment duration as not exceeding 240 days

I look forward to receiving your valuable guidance.

Regards to all,

Akhila

That is the problem of the contractor. The security guards are the permanent employees of the contractor, and this is not an issue to be worried about by you. Because you mentioned the word "contractor" somewhere in your post.

If they are directly employed by you and are on your payroll, then you have to issue a contract to them for 3 months. After three months, give them a break for 2-3 days before issuing a new contract. In this way, they will not continuously work and claim a permanent job.

Do you know all guards are covered under the Guard Board Act? Your contractor should have the registration under the Guard Board Act if they are providing the guard. If you are using contract labor as a guard, then they can definitely claim for permanency, and your company will be in trouble. So, you must give them a short period of break for 10 to 15 days, and then you can hire them again.

One more idea I can give you is to talk with them and tell them clearly that they will be on duty for the next 15 days, but on paper, they will be marked absent. Pay them by hand without making any record on the wages register. However, this will only happen when your guards are willing to continue with you; otherwise, you can give them a short break.

Hope this will help you.

Dear Akhila,

Abhishek is somewhat correct, but Ravi is incorrect. The Security Guards Board is a body that looks into the benefits of security guards employed by private security agencies in terms of their minimum wages, statutory dues, etc.

If a security guard has worked for more than 180 days at your place on the same premises, he can claim permanency. Keep in mind that even if he is provided by a contractor, you remain the Principal Employer. Therefore, it would be advisable to give them a break for at least a month. Normally, private agencies have a policy to rotate security guards every six months to prevent this kind of situation.

You don't need to change them all at once; do it one by one so that your work is not hampered. Out of three guards, you will always have two trained persons. The Security Guards Board exists only in ten districts of Maharashtra and nowhere else in the country. This body is part of the State's Labour Ministry. Any other questions regarding this are welcome.

Regards,

Sanjiv Shrivastava