Principal Employers Under CLRA -impact Of Recent ID Act Changes

rajanassociates
Dear All

Sub : Effect of the Amendment- Sec 2 A of the Act - Sub Section (2) & (3) Direct reference of Dispute for claiming permanency

Earlier the Employee employed by the Contractor could not approach a Labour Court for claiming permanency without the assistance of a Labour Union. Now by the amendment he/she can approach the Labour court directly.

The remedy is:

1. First he/she has to make an application to the Labour Department Conciliation Officer.
2. If no action is taken by the Conciliation Officer then he/she can file an application to the Labour Court for adjudication of the Dispute.
3. Time limit for questioning all such disputes in relation to discharge, dismissal, termination or retrenchment is 3 years.

Issue for Principal Employer :

1. Individual Contractor Employee grievance is subject to Conciliation by Labour Officer and thereafter by Labour Court.Earlier the method of reference by Govt was a deterent.

2. Can open the floodgates of Contractor Employee Litigation for claiming permanency .

Remedial Measures:

Suitable remedial measures based on legal advice is to be taken for ensuring proper termination/ severance of Contractor Employee.

Knee jerk reactions is to be avoided .

With Regards

Advocates & Notaries & Legal Consultants for Staffing & Recruiting Industry

E-mail : rajanassociates@eth,net,

-9025792684-9025792634
sambasivakamasani
One of the Labour Commissioner (C) expressed that in the Conciliation process of Contractor and its workers, the Principal Employer is not party. Principal Employer is exempted. Some one, please convey the amendment details. Regards
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