How to Ensure Fair Treatment and Proper Deductions for Contract Housekeeping Staff?

Hi,

We have one office boy working with us in the housekeeping department. He is a contract employee of 'Rely-n-able' Housekeeping Service. He joined this company in February 2007. Recently, that company was taken over by Quality Service (a new housekeeping agency).

I have come to know that Rely-n-able Marketing was charging for PF, ESIC, other service charges, leave, bonus, and uniform from our company but did not open a PF account, ESIC account, or provide him with a uniform. Now, the money that the company paid to the contractor has gone into his pocket. Can you please guide me on taking the necessary action?

The new company, Quality Services, has provided a letter to the company stating that the contract employee has submitted his family photo, filled out a PF nomination form, but how can I determine if that money is going into his pocket?

Can anybody help me with the terms and conditions for contract employees, specifically the points we should be aware of while paying them monthly bills? I need expert suggestions and advice.

Regards,
Jayshree
jayshree@brainmatics.net

One of the important provisions of CLRA is the fact that a representative of the principal employer certifies that the salary has been disbursed in his/her presence, thus ruling out anomalies. The ultimate responsibility lies on the principal employer if the contractor fails to discharge his contractual obligations. Be strict with the contractor. Visit their office. I once found blank signed/stamped forms at one such highly reputed vendor's end. They are normally paid 2000-2200/- for 12-hour shifts and no facilities. Call me if you have further queries.

Suryavrat
9999645755

Hi Jayshree,

When dealing with contract employees, it is essential to be very careful while entering into contractual agreements with the contractor. You may want to incorporate clauses, such as insurance, that include coverage of medical facilities for the contract laborers. Additionally, consider including a clause that places the contractors under the obligation to submit challans/receipts of payment to insurance/ESIC departments. Similarly, you may ask them to provide proof of submission of P.F. contributions to you. It is also advisable to request the contractors to produce a license under the Contract Labour (Regulation and Abolition) Act, 1970, if you are engaging more than 20 individuals as such.

Regards,
Prasad
Vishwakarma_prasad@yahoo.com

Hi,

Ultimate responsibility rests with the principal employer. No amount of clauses can save your skin if any employee goes to the labor department. Your company needs to pay, so adopt a hardline stance---stop all payments, issue him a notice for termination of the contract until he gives you objective evidence of complying with all legal obligations.

Does your company have a "vendor code of conduct"? If not, take CLRA 1970 as a baseline and repeat the exercise with all vendors, be they minor or large accounts.

Have a "vendor assessment council" that shall be the sole advisory body regarding all issues relating to vendors. The necessity is borne out of the fact that technical and commercial aspects are not the only considerations while ordering services or products. Environmental and labor laws are equally important.

If you need help in drafting a "vendor code of conduct," let me know.

Suryavrat
9999645755

I am in the HR department, and my boss has assigned me to handle housekeeping. How can I manage this new job? I am not familiar with it.

Hi,

If you have a large setup with many housekeeping staff, create a checklist for them to follow their responsibilities and check the office area every hour. Also, assign specific tasks to each housekeeping staff member.

Regards,
jayshree@brainmatics.net

Dear Jayashree,

Hereafter, what you can do is as follows:

a) Whenever the housekeeping vendor submits their monthly invoice, make sure that they attach a photocopy of last month's challan for PF and ESI to their invoice.
b) Ask your vendor to submit Form 3-A and 6-A regarding EPF and Form 6 for ESI. These are annual and half-yearly returns, respectively.
c) Instruct the vendor to provide the invoice with a breakdown of PF, ESI, and other deductions. Obtain the PF and ESI numbers of a few employees. Verify on the website whether the amounts have been paid or not.

Thank you,
Dinesh V Divekar