Hiring Temporary Workers for a Year: Do We Need to Register Under the Labour Contract Act?

Hi all,

Kindly guide me on the following matter:

We are hiring labor for a temporary basis in our company payroll (1-year contract) for a particular project, and this will be clearly stated in their offer letter cum appointment letter. After that, the employee will be terminated.

Now, my question arises: should we require registration under the Labour Contract Act since we are not hiring from any third party?

Looking forward to your reply.

Thanks, Pranami

If you are hiring labor through a contractor, then you need to register your firm as per the provisions of the Contract Labour Act.

Regards,
Nirav Patel.

Hi all,

Recently, I've joined a construction company as HR. Earlier, they didn't have any HR department. Right now, I am working on the Leave policy, and I am stuck on the Maternity leave policy. I would like to know if it is compulsory to provide paid maternity leave, and if the company is not willing to pay, what will be the consequences. I heard from one of the old employees that they don't provide paid maternity leave, and our organization is not covered under the ESI act.

Kindly guide me on this matter.

Thanks,
Memi

If you are engaging workmen for a specific period on your payroll, it is called a Fixed Term appointment, which is entirely different from contract labor. Though there exists a contract with the employees for a certain period, say one year or completion of a project, it is not contract labor but only Fixed Term Employment.

The provisions of the Contract Labour (Regulation and Abolition) Act will become applicable only when you engage workers through a contractor under which there does not exist any employer-employee relationship between you and the workmen who are solely workmen of the contractor. In that case, you have to get registration to engage workmen through a contractor provided you plan to engage at least 20 such workmen. In other words, if your plan is to engage less than 20 workmen, there is no need to get registration under the CLRA Act.

Regarding the payment of maternity benefits, I would like to say that an establishment where women are employed is expected to comply with the provisions of the Maternity Benefit Act. It is mandatory to grant maternity leave with wages up to 12 weeks for women workers who have worked for at least 80 days during a period of 12 months immediately preceding the date of delivery. In addition to the leave, there is a provision for making a payment of Rs 1000. In my understanding, a construction company is not exempted from the operation of the Maternity Benefit Act, although the workers engaged at sites are exempted from ESI. The establishment will be covered by ESI if the regular workers who sign the muster rolls of the company exceed 20.

Regards,

Madhu.T.K

You are right, Madhu. Whoever is engaged on a contract basis is not considered a laborer. If a company employs more than 20 workers, then the question of registration and obtaining a license arises.

Regards,
S. Bhaskar
[Phone Number Removed For Privacy Reasons]

Dear Sir,

In this context, one more piece of advice is required. I have joined a project and am working in the HR department. My company has engaged a construction company, Ltd., for this project, which involves civil and mechanical work. I am seeking some advice regarding whether we, as the principal employer, require registration under the Contract Labour Act and for engaging migrant labor.

The construction job and erection responsibilities have been assigned to a limited company specializing in construction. What would be its role in this scenario? Any further suggestions are highly appreciated.

Regards

Dear [Employer's Name],

If the employment is temporary in your organization, with a clear starting and end date, and includes a termination clause, CLRA registration can be dispensed with.

With Regards,

V. Sounder Rajan
Advocates & Notaries & Legal Consultants
E-mail: rajanassociates@eth.net
-9025792684-9025792634

For more information, please visit: https://www.citehr.com/285737-legal-...#ixzz1AyYWRmBo

If you engage a total of 20 numbers of contract workers through all the contractors taken together, you should register under the CLRA Act. Similarly, if you engage at least five interstate migrant employees, you have to get registration under the Interstate Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1976.

Regards, Madhu.T.K