Struggling to Define Core vs. Non-Core Production Activities? Let's Discuss How to Tackle This Challenge

maheshcool
Hi Folks, kindly let me know how one can bifurcate production activities as core and non-core. I understand that only the respective government has to make a decision on this as per the CLRA. In the absence of specific guidelines, I find it challenging to do so and would like to know how this can be achieved. Do we have specific guidelines covering this or key concepts to determine what activities amount to core or non-core? I would highly appreciate your inputs.

Regards,
Mahesh
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Madhu.T.K
Understanding Core and Non-Core Activities Under the CLRA

If you are referring to the differentiation in the perspective of the Contract Labour (Regulation and Abolition) Act, all activities directly linked to production or service operations of the undertaking are core activities or activities of a perennial nature. Activities not directly connected to production or operations are non-core or non-perennial activities.

When we engage manpower for the upkeep of the garden, beautification of lawns, or even cleaning and upkeep of the premises, which are not regular in nature, we call them non-perennial or non-core activities. Housekeeping activities, however, shall come under core activities.

For example, in the hospitality industry, such as in a hotel, people engaged in cleaning the rooms, restaurants, or guest areas are considered to be engaged in core activity since in such an industry, it is something very much required. At the same time, those engaged in cleaning the staff canteen, restrooms, or public areas are considered to be engaged in a non-core area even though both are doing the same work but in different ways. The former is directly linked to customer satisfaction, but the latter is not.

Similarly, in a hotel, employees in the kitchen meant for guests attached to restaurants are performing core activities, while chefs/cooks in the staff canteen are considered to be engaged in non-core activities even though both are doing the same job.

Similar bifurcation can be done in every industry, whether manufacturing or service.

Regards,
Madhu.T.K
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