Canteen Management in Factories: Can Labor Contractors Legally Run Them?

Canteen Management in Industrial Establishments

1. Who can run the canteen in an industrial establishment, and what does the company have to provide for the establishment and running of the canteen? Can a labor contractor run the canteen?

2. Does the Act mandate the subsidized sale of foodstuffs to the workmen?

3. Can a labor contractor run the canteen in an industrial establishment? Does the Act permit this or not?

You can go through the CLRA 1970 Chapter V: Welfare and Health of Contract Labour Section 16 because giving you a reply by text is quite hard. The law needs to be referred to; only then will you get a total understanding of the meaning behind the section.

Hope the above information can solve your query.

Regards,
Shravan Rajput
Sr. Executive-HR
Alembic Limited

Management's Role in Running a Canteen

1. It's the description of the management/employer by whom they want to run the canteen. There is no act/law that prevents a labor contractor from running a canteen. Basically, when the requirement of a canteen is applicable in an industrial establishment, the employer has to arrange to run a canteen, whether they hire a food supplier or appoint a canteen contractor, who can also be a labor contractor. However, there should be certain conditions:
- There should be a separate dining hall, kitchen, storeroom, etc.
- A canteen committee containing workers and management representatives should have total oversight of canteen affairs, including the display of the menu, etc.

Subsidization of Canteen Items

2. The act does not provide for the subsidization of items; it is entirely dependent on the employer.

Labor Contractor Running a Canteen

3. No act prevents a labor contractor from running a canteen.