Is a Labor Contractor Necessary for Hiring Casual Workers in Manufacturing?

Dear HR Friends,

I am new to the manufacturing industry. I have a doubt: is it compulsory to maintain a labor contractor to hire casual workers? Currently, we are directly hiring around 20-30 casual workers on a daily basis without any contractor. Please advise me on this matter.

Thanks in advance.
Venkatesh

Dear Venkatesh,

It is not necessary to have a contractor to engage casual workers.

Regards,

R.N. Khola

It is not necessary to have a contractor to engage casual workers, but it is not possible to keep a casual worker on your payroll. How will you maintain their salary? My advice is to keep them through a contractor only.

Pankaj Painuly - 9810020717

Sh. R.N.Khola

Good morning, sir.

In my manufacturing company, there are 9 workers and 16 workers. Since the last 2 months, we were told that we are not eligible for E.S.I registration. However, yesterday Mr. Madhu told me that we are applicable. The reason being that all the workers in our factory are our workers (including contractor workers).

So, tell me in detail how to maintain their salary and E.S.I. As the contractor bill includes his workers' salary and E.S.I deduction, which he deposits and gives us a receipt of it.

Dear Member,

You must know that Mr. Madhu T.K. is our senior member having expertise in Labour & HR matters, and therefore, you should follow his advice. While I do not deal with matters relating to ESI & PF, it is clarified that since you are employing 10 or more employees directly or indirectly in your manufacturing unit, you are covered under the ESI Act and thus need registration and other compliances.

Regards,
R.N.Khola