Remember While Engaging A Contractor - PDF Download

Dear Members
Please find enclosed the attachments for " Remember While Engaging Contract Labour"
regards
Abubakkar

1. Obtain contracor's License as this is the proof of Legal contracor
2. Do not coninue any contract employee for more than 6 months
3. Pay them Minimum Wages or fair wages. Their wages should not be much less as like MSL
4. Ensure fair service conditions
5.Ensure whether the contractor is covered under PF & ESI/WC Insurance
6. Reasonable or fair treatment will help in while settling the issue, if any

I would like to add some here.

In addition to what is stated in above posts, please make sure that there is valid contract between the Principal Employer and the Contractor.

ESSENTIAL INGREDIENTS OF A CONTRACT AGREEMENT WITH CONTRACTOR

1. The agreement should be drafted and executed on non-judicial stamp paper.

2. The agreement must disclose the names and addresses of the Contractor and the principal employer.

3. The agreement must contain the rights and obligation of both the parties.

4. The agreement must disclose the place of work, time of working, rate of compensation ( towards consideration) and consequences arising out of breach of contract and procedure for termination by either of the parties to the agreement.

5. The agreement must disclose the scope of work, deployment of manpower in number, period of validity, compensation, security deposit and terms of payment of bills.

6. The agreement should be between the contractor and the principal employer and should be witnessed by two witnesses.

7. The agreement should disclose the name and address of the contractor.

8. The agreement should disclose the exact nature of job to be assigned.

9. The agreement should narrate the job actually to be performed.

10. The agreement should ensure and disclose the obligations to pay the minimum wages as applicable.

Regards,

Swapnil

Dear Friends

The theoretical and legal points on deployment of contract labor is very well discussed and elaborated above. In real business, (1)companies do deploy contract labors in perennial type of job and (2) in certain cases contract labor is deployed in positions where permanent employees are also engaged in same/similar jobs, which may attract litigation under article 14 of the Indian constitution.Such deployment increases the possibility of future IR disturbances and legal complication.

One of the most important reason to take such apparent risk is probably low cost labor, availability of such labor in the market, poor control in the government machinery and reluctance of unionized labour to deliver proper work to employer.

In business risk and return are positively correlated. Contract labor will continue to be deployed, despite industry/factory specific IR and legal setbacks, as it happened in Air India, SAIL, many other companies and recently in the Mehasana Factory of Maruti. I seek contribution and comments of experts in this field from different parts of India on the following points.

1. What happens if we deploy contract labor in perennial type of job: Legally contract labors can not raise dispute against the principal employer and seek permanency, even if they are deployed in perennial type of job, unless the company/industry has been prohibited by the labor department to deploy contract labor in such category of job. As such, there will be no cognizance of such dispute.

2. In the land mark award in case of SAIL, I find that,even if a dispute is settled through adjudication/court in favor of contract labor, the judiciary, at the most, may prohibit deployment of contract labor in such cases but can not impose/ pass award on the principal employer to regularize such contract labor.

3. I saw criticism on the recent Maruty case (where one of our colleague, who also happens to be one of my my classmate in XISS, died out of labor outrage) that HR Department was responsible for such outrage. I wish HR community could give a befitting reply to such criticism.

Dear All,
Please find the Andhrapradesh CLRA Amendment for your reference.
With Regards.
Chithiravel.V

sir,
my self naveen , i want to know it necessary for contractor having esic & epf number for registration under CLRA act
if the compliance of esic & epf done by ptinciple employer .
as contractor is work on small basis or in single company , but he want register under CLRA as principle employer has take his licenses .so please guide me .
wheater he has to take his epf & esic number for this or without it he get CLRA registration.