How Do You Manage Unacceptable Behavior from Contract Labor When Termination Isn't an Option?

Dear All,

As I am working as an HR Executive, we have contract laborers for work. These individuals commit actions that are not acceptable by the organization. While we can provide warnings, we are unable to terminate them as there is usually a shortage of labor. I seek advice from senior members on how to handle this situation.

Kindly advise.

My email ID is simranjeet.kaur2009@gmail.com.

Thank you.

Contract laborers are expected to maintain the discipline set out by the organization. If they do not adhere to it, kindly bring it to the attention of the contractor who has engaged them. Issue a warning that payment will be withheld as per the monthly bill if the employees fail to maintain decorum. It is important to make this issue the responsibility of the contractor rather than taking ownership of it.

Regards,
Madhu.T.K

Typically, contractors are not authorized to commit anything on behalf of the company to the company's customers. Most companies have pretty tight policies to this affect. The only two exceptions are 1. If the contractor is filling in for a senior leader of the company and has been explicitly authorized by the company's senior leadership 2. The commitment is about the work directly done by the contractor (or severely impacts contractor's work) There are a few things you could do from an HR/Legal/corporate perspective to ensure you (read your company) would not be in such a situation. 1. If your company does not already have such aforesaid policies in place, contact your legal department put such procedures in place. 2. Have the contractors (and the companies they represent) sign agreements specific to the contractor's authority 3. Define a role-based authorization matrix and clearly establish with your clients as to who is authorized to make commitments on company's behalf While the above could take some time, to do some immediate damage control, send out a general memo to your clients that states something like "Please note that starting <date>, any and all commitments on behalf of <company name> must be authorized by a full time employee of <company name> at the <position name> level or above. We regret to inform you that we are not in a position to honor any commitments made by anyone other than the authorized personnel of <company name>, including contractors hired by <company name>". I would request the corporate legal affairs department to vet the memo before sending it to the clients as well (just be on the safe side). Thanks, --Som G

Hi,

As per your quote, contract laborers are committing to things to management which is not acceptable. Can you define in detail what they are asking for?

Thanks/Regards,
Pavan Kinhal

Hi,

According to the Company Law Board, you can take some action on Contractor 1. First, check the legal agreement done between your company and the contractor. Then, find the reasons why they are doing these types of things.

Dear Friends,

In this regard, what Mr. Madhu has said is correct. The Contract Workers being engaged by the Contractor must follow the rules and regulations of the Organization. If his workers do not follow the discipline, Management has to consider alternatives by terminating the contract. Once the Contractor is terminated, his workers shall go with him. The Organization only deals with the Contract Workers in terms of payments. If the Contractor fails to make payments, then the Principal Employer becomes liable. This is my opinion.

AVGN Vara Prasad