Dear Seniors, can you provide me answers to the below questions related to contract labour?
Differences Between Contract Labour and Outsourcing
What are the differences between contract labour and outsourcing? Which is a better option and why? Is the Contract Labour Act applicable when jobs and services are outsourced?
Liability and Legal Implications
What is the liability for staff engaged through a manpower agency? Is the Contract Labour Act applicable to seasonal labour? What is a 'Sham' contract? What are non-perennial and non-permanent jobs which can be assigned to contract labour?
Registration and Licensing
Each contractor engaging less than 20 but together they engage more than 20. Will the provisions of registration, licensing, and other statutory provisions apply? If a contractor engages a sub-contractor, who is the principal employer? How to convert a labour supply contract into a job contract?
Employer's Role and Responsibilities
Can and should the employer have a say in the number and selection of contract labour? Can we engage contract labour in place of permanent employees? Can and should we engage contract labour in manufacturing jobs? What is the risk involved? Should the contractor issue an appointment letter to contract labour? Is it necessary and desirable to issue an employment card/gate pass/identity card to contract labour? If so, under whose authority/signature? What are the safeguards required?
Workforce Composition and Management
Can we have permanent employees and contract labour working side by side on the same job? What is the best ratio between permanent employees and contract labour? Can we engage 100% contract labour? Should the contractor and contract labour be rotated? Why? How often? Can we have different wages and other terms for permanent employees and contract labour doing the same or similar job? Can we transfer casuals/temporaries on the rolls of the contractor?
Compliance and Benefits
Application and implication of P.F., ESI, Bonus, Gratuity, and other benefits to contract labour and how to ensure compliance? How to ensure the submission of PF and ESI returns by the contractor? How to get a new code/sub-code number from PF Authorities?
Contractual Work and Sustainability
Security, Housekeeping, drivers, canteens, horticulture, etc., on contract/voucher payment. Sustainability? Case laws? What is the liability of the principal employer for injury, illness, disability, death, etc.? Who is to take disciplinary action against contract labour? Under what rules? Are standing orders applicable to contract labour? Statutory requirements and precautions in awarding a contract for safeguarding management's interests?
Contractual Changes and Legal Implications
License not renewed but the contractor continues to work. Legal implications including permanency? Contractor changing but contract labour not changing. Implications? Precautions required? Contract terminated due to unsatisfactory performance of the contractor, contractor leaves, can contract labour claim permanency? What should the principal employer do? Contract labour terminated through a settlement. Should the principal employer be a party?
Payment and Financial Obligations
What to do if the contractor refuses to pay labour? Can and should the principal employer pay contract labour directly? Any risk involved? Action required to be taken by the management after the abolition of contract labour? How to get rid of the contractor and contract labour? How to reduce the number of contract labour? Do we have to make P.F. and ESI contribution even for a few days of casual employment?
Demands and Legal Claims
Contract labour demanding permanency. How to handle? Contract labour demanding similar benefits as permanent employees. Is the claim legally valid? Is the pension scheme also applicable to contract labour? Details of the Pension Scheme? Is the Minimum Wages Act applicable to contract labour? Can we split minimum wages so as to reduce PF liability? Is P.F. to be deducted on basic wage, basic plus DA, or total wage? Elements to be included? Employed at Rs. 5,000/-. Can the employee be excluded for P.F. after crossing Rs. 6,500/-?
Working Conditions and Regulations
What is the eligibility for working hours, leave, holidays, OT, etc., for contract labour? What is the liability of the principal employer in the case of sub-contracting? Is there any maximum period prescribed for casual, temporary, and fixed-term employees, trainees? Do breaks in service help in reducing liability? Are trainees exempt from P.F., ESI, and minimum wages? Which categories? Are standing orders a must? How soon is it legally required to frame the Standing Orders and get certified after the start? After engagement of how many employees? What is the procedure for certification?
Gratuity and Government Regulations
Employed by one contractor for three years and another for the next three years. Who will pay the gratuity? How to ascertain the appropriate Govt. - Central or State? What are the implications of the Supreme Court Judgment in the Steel Authority (SAIL) case reversing the earlier Air India Judgment?
Regards,
Differences Between Contract Labour and Outsourcing
What are the differences between contract labour and outsourcing? Which is a better option and why? Is the Contract Labour Act applicable when jobs and services are outsourced?
Liability and Legal Implications
What is the liability for staff engaged through a manpower agency? Is the Contract Labour Act applicable to seasonal labour? What is a 'Sham' contract? What are non-perennial and non-permanent jobs which can be assigned to contract labour?
Registration and Licensing
Each contractor engaging less than 20 but together they engage more than 20. Will the provisions of registration, licensing, and other statutory provisions apply? If a contractor engages a sub-contractor, who is the principal employer? How to convert a labour supply contract into a job contract?
Employer's Role and Responsibilities
Can and should the employer have a say in the number and selection of contract labour? Can we engage contract labour in place of permanent employees? Can and should we engage contract labour in manufacturing jobs? What is the risk involved? Should the contractor issue an appointment letter to contract labour? Is it necessary and desirable to issue an employment card/gate pass/identity card to contract labour? If so, under whose authority/signature? What are the safeguards required?
Workforce Composition and Management
Can we have permanent employees and contract labour working side by side on the same job? What is the best ratio between permanent employees and contract labour? Can we engage 100% contract labour? Should the contractor and contract labour be rotated? Why? How often? Can we have different wages and other terms for permanent employees and contract labour doing the same or similar job? Can we transfer casuals/temporaries on the rolls of the contractor?
Compliance and Benefits
Application and implication of P.F., ESI, Bonus, Gratuity, and other benefits to contract labour and how to ensure compliance? How to ensure the submission of PF and ESI returns by the contractor? How to get a new code/sub-code number from PF Authorities?
Contractual Work and Sustainability
Security, Housekeeping, drivers, canteens, horticulture, etc., on contract/voucher payment. Sustainability? Case laws? What is the liability of the principal employer for injury, illness, disability, death, etc.? Who is to take disciplinary action against contract labour? Under what rules? Are standing orders applicable to contract labour? Statutory requirements and precautions in awarding a contract for safeguarding management's interests?
Contractual Changes and Legal Implications
License not renewed but the contractor continues to work. Legal implications including permanency? Contractor changing but contract labour not changing. Implications? Precautions required? Contract terminated due to unsatisfactory performance of the contractor, contractor leaves, can contract labour claim permanency? What should the principal employer do? Contract labour terminated through a settlement. Should the principal employer be a party?
Payment and Financial Obligations
What to do if the contractor refuses to pay labour? Can and should the principal employer pay contract labour directly? Any risk involved? Action required to be taken by the management after the abolition of contract labour? How to get rid of the contractor and contract labour? How to reduce the number of contract labour? Do we have to make P.F. and ESI contribution even for a few days of casual employment?
Demands and Legal Claims
Contract labour demanding permanency. How to handle? Contract labour demanding similar benefits as permanent employees. Is the claim legally valid? Is the pension scheme also applicable to contract labour? Details of the Pension Scheme? Is the Minimum Wages Act applicable to contract labour? Can we split minimum wages so as to reduce PF liability? Is P.F. to be deducted on basic wage, basic plus DA, or total wage? Elements to be included? Employed at Rs. 5,000/-. Can the employee be excluded for P.F. after crossing Rs. 6,500/-?
Working Conditions and Regulations
What is the eligibility for working hours, leave, holidays, OT, etc., for contract labour? What is the liability of the principal employer in the case of sub-contracting? Is there any maximum period prescribed for casual, temporary, and fixed-term employees, trainees? Do breaks in service help in reducing liability? Are trainees exempt from P.F., ESI, and minimum wages? Which categories? Are standing orders a must? How soon is it legally required to frame the Standing Orders and get certified after the start? After engagement of how many employees? What is the procedure for certification?
Gratuity and Government Regulations
Employed by one contractor for three years and another for the next three years. Who will pay the gratuity? How to ascertain the appropriate Govt. - Central or State? What are the implications of the Supreme Court Judgment in the Steel Authority (SAIL) case reversing the earlier Air India Judgment?
Regards,