Understanding the Ideal Company to Contract Employee Ratio: Is 80:20 Really Required?

Dear All,

I need advice on the ratio of company and contract employees in an organization. I heard that it should be 80:20 (Company Emps:Contract Emps) as per the Contract Labor Act. Is this correct or not? Please suggest me in this regard.

Regards,
Narasimha Enni

Dear Narasimha Enni,

This is nowhere mentioned in the Contract Labour (R&A) Act, 1970. We are not allowed to engage contract labour where the appropriate Government has issued a notification regarding the prohibition on any of the processes/employments, etc. For more details, you may contact your nearest Labour Department Office.

Regards,

R.N. Khola
(Labour Law & Legal Consultants)
09810405361