Dear Software Engineers, per se, you need to see whether they come within CLRA. The definition of an employee under CLRA is as follows:
The term workman, as defined in clause (i) of Section 2 of the CLRA, is as follows: A workman means any person employed in or in connection with the work of any establishment to do any skilled, semi-skilled, or unskilled manual, supervisory, technical, or clerical work for hire or reward, whether the terms of employment are express or implied. However, it does not include any such person who:
(A) is employed mainly in a managerial or administrative capacity;
(B) being employed in a supervisory capacity, draws wages exceeding five hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature; or
(C) is an out-worker, that is to say, a person to whom any articles and materials are given out by or on behalf of the principal employer to be made up, cleaned, washed, altered, ornamented, finished, repaired, adapted, or otherwise processed for sale for the purposes of the trade or business of the principal employer. The process is to be carried out either in the home of the out-worker or in some other premises, not being premises under the control and management of the principal employer.
As per the same SAIL judgment, the definition is quite lucid. It has two limbs. The first limb indicates the meaning of the term as any person employed in or in connection with the work of any establishment to do any skilled, semi-skilled, or unskilled, supervisory, technical, or clerical work for hire or reward. It is immaterial that the terms of employment are express or implied. The second limb contains three exclusionary classes - (A) managerial or administrative staff; (B) supervisory staff drawing a salary exceeding Rs. 500/- (p.m.); and (C) an out-worker, which implies a person to whom articles and materials are given out by or on behalf of the principal employer to be made up, cleaned, washed, altered, ornamented, finished, repaired, adapted, or otherwise processed for sale for the purposes of the trade or business of the principal employer. The process is to be carried out either in the home of the out-worker or in some other place not being the premises under the control and management of the principal employer.
Recently, the ID Act has enhanced the salary limit to Rs 10,000/-, but CLRA has not been amended, and the same Rs 5000/- continues.
Kindly go through the above definition and decide for yourself.
Also, see our posts on Legal Compliances required for the Staffing Industry.
V. Sounder Rajan
Advocates & Notaries & Legal Consultants for Flexi Staffing Industry
E-mail: rajanassociates@eth.net
Off: 044-4262 0864, 044-6587 4684, -9025792634