Dear Colleague,
As rightly briefed by the other colleagues, please read the additional inputs as under:
Contract Labour
An entity takes on the color of the establishment where they work, similar to how water converts its color depending on the type of soil it falls on.
What does it mean
When contract workers are engaged in a factory, they are governed by the Factories Act 1948. When contract workers are engaged in a plantation, they are governed by the Plantation Labour Act 1951. When contract workers are engaged in shops, they are governed by the Shops and Establishments Act 1953 - on all working hours, holidays, and matters connected therewith.
In your case, as it is a factory, you need to follow the provisions of the Factories Act 1948 on all matters relating to shifts/hours of work, and overtime, etc.
Overtime & OT Wages under the Factories Act 1948
Section 59 of the Factories Act, 1948 provides for overtime and extra wages. According to the provisions, if workers work for more than 9 hours a day or more than 48 hours a week, extra wages should be given at twice the ordinary rate.
Total working hours inclusive of overtime shall not exceed 60 hours in a week, and the total overtime hours in a quarter ought not to exceed 50 (for any one quarter). A register of overtime must be kept for inspection.
Provisions of the Contract Labour (R&A) Act 1970
With regard to the provisions of the Contract Labour (Regulation and Abolition) Act 1970, it is a special legislation focusing on licensing, registration, and monitoring the system of contract labour and also on abolishing the engagement of contract labour in employments where the Appropriate Government has passed a GO under Section 10 of the Act.
Hence, kindly check the notifications prevailing for your industry abolishing the engagement of contract labour issued by the Appropriate Government and then establish a system in your factory.
All the best and God bless,
Dr. P. Sivakumar
Doctor Siva Global HR
Tamil Nadu