Employment Of Casual Worker

Dear Friends
I have following queries
Presently we are taking a contract menpower( helpers) from a out side contarctor on the commision basis and providing them0 all statuatory benifits under the labour laws.
Now management wants to employee all these contractor worker directly as casual or temporary employee
My query is what types of legal obligation we can face in future and which practice out of above two is more suitable & benificial for the employer.
Please help
thanks
regards
Raj

According to me its better you employ though other contractor since it helps us to get through other legal formalities

Hello,

Inadequate information!

Tell me, how many workmen you have on your own payroll as of now?

How many contract labour (i.e. labour through contractors-collectively) you engage presently? What is your industry?

Subject to the answers to above questions, I state as under:

1) If "Industrial Employment (Standing Orders) Act 1946 is applicable and the Model Standing Orders are applicable to your establishment (and even otherwise) if such "converted" contract labour is taken on your rolls as "Casuals" or "Temporaries" remain on your rolls for more than 240 days in a span of one year, the law will require you make them "permanent" on your rolls!

2) Are you compliant with Contract Labour (Regulation and Abolition) Act 1972 if the same is applicable to you?

3) You will have to pay Statutory Minimum Wages applicable your region. You may already be paying same to your contract labour!

4) Compliance under other applicable labour legislation is mandatory anyway!

5) Downsizing at will may not be as easy as at present

Should you need more elaborate advice, you need to provide more specific and pertinent information of your reality!

Cheers!

Regards

samvedan

August 12, 2012

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Elaborating further on what Mr.Samvedan said, your liabilities in respect of P.F, ESI, Employees' Compensation Act and Minimum Wages Act will remain the same whether you engage them directly as temporary labour or through contractor.However, if you employ then through a genuine contract as contract labour, you will be free from the liability of making them permanent even though they work for 240 days or more (if Standing Orders are applicable) and other termination procedures required under law.
B.Saikumar
HR & Labour Law advsior
Mumbai