Contract Labour Engagement - 100 %

Dear Seniors,
Can the manufacturing company engage all the workers though contractor?
Alternatively can the employer engage 100% workers through contractors?
P.S :- All the Contractors & Prinipal Employer follow all the provisions of Contract Labour Act

Dear Prashant
You can engage all the workers through contractors. But for Supervision, inspection and scrutinising the bills purpose you must keep some employees in your roles. Because, You should not completely depend on the Contractors and consultants employees for all the works.

Dear Prashant

Sub-Contract labour engagment-100%

The Contract Labour Act (R&A) 1970(shortly CLRA Act) does not stipulate any ratio of contract labour to be employed in an establishment nor it prohibits on it's own employment of contract labour in any activity including a core activity.Though it does not prohibit on it's own any contract labour in any activity, we should be aware of the fact that it is an Act enacted for regulating and abolishing contract labour also. Sec. 10 of the Act which is the soul of the CLRA Act empowers the appropriate government to prohibit employment of contarct labour which considers the following factors before issuing any notification abolishing contract labour.

1)Whether the activity is incidental to or necessary for the industry or business

2) whether it is of perenniel nature

3)Whether it can be done ordinarily by the regular workmen

4) whether it requires employment of considearble number of whole time workmen.

Thus the answer to your question is 'yes' technically but the spirit of the Act demands caution.

B.Saikumar

HR & labour Law Consultant

Chipinbiz Consultancy Pvt.ltd

Mumbai

022-28324234

There is no provision in the Contract Labour (R&A) Act that on it's own prohibits employment of contract labour even in core activity technically. However this is subject to the powers of the appropriate government under Sec.10 of the Act.
B.Saikumar
HR & labour Law Consultant
Chipinbiz Consultancy Pvt.ltd
Mumbai
022-28324234

Yes. There shall be a notification by the appropriate government prohibiting a particular work/activity. As long as there is no such prohibition, employment of contract labour even in core activity can be done.

kindly followed private security regulation act -2005
work is perinniel but ennaged by contact but why.

True that the Contract Labour Act does not prohibit employment of contract labour even in core activity technically.
Here we need to understand the difference between getting a job done through a contractor and outsourcing a job.
An organization can not outsource its core activity as per the Supreme Court judgement.
regards,
Kamal

Dear Prashanth,
You have asked the right question in this scenario. majority new companies are having this practice.
As I discussed with some of my seniors, We can have the contract worker for any work including production. But the work we are assigning to worker should be temporary nature of job.
Because, If it is regular nature of job, Department of Labour does not issue license to contractor. In the sence, If any worker is having work for 240 / more days, It can be treated as permanent nature of job.
for the permanent nature of job, we need to have on roll employees.
Regards,
Seetharam

Dear
It is state government notifications and contract labour can not be used for core activities.
Even labour department does not register for manufacturing activities and neither contractor get licence for the same.

Dear Gourang
It is a settled position in law as laid down by certain High Courts with regard to Private Security Gaurds Act in force in some states like Maharastra, that security gaurds governed by such Acts fall outside the purview of the Contract Labour Act.Hope this settles your doubt.
B.Saikumar
HR & labour Law Consultant
Chipinbiz Consultancy Pvt.ltd
Mumbai
022-28324234