How Can We Streamline Contract Labor Attendance Recording at Our Factory?

Improving Contract Labor Attendance Recording

I need some advice on how to regularize the contract labor attendance at the factory. Currently, we typically record gate attendance manually. I am seeking suggestions for improving this process, based on the practices followed by larger industries.

Regards

Implementing a Contract Labor Attendance System

You should be very careful with all activities related to contract labor. It is better to implement a time card (hard copy) or have the superior sign in and out time. This system addresses attendance and controls their movements and accountability.

Regards,
Kamesh

Taking attendance of contract labor by the principal employer should not be done as this may lead to direct supervision of the contract labor.

Regards,
Sudipta

Please suggest a better system for monitoring and tracking contractors' workmen's attendance rather than manual record-keeping. As the number of laborers is increasing day by day, it is crucial to opt for a system-oriented approach rather than a manual process.

Hi, you can even use access cards along with biometrics in the work areas. However, if it is under contract, you will have to get this done from contractors.

Thanks,
Bijay

If you have the contractor supervisor, then take the daily attendance from him and cross-check it with the entry at the security gate. If there is no difference, then ask the supervisor.

Regards,
Rao Rajbir
Sr. Executive HR

You can do many things. If you have contractors, it's better to take attendance from them at the end of each month. Please advise the contractors to maintain attendance in the muster roll format on the computer and fill out the attendance register from the computer. It's better to maintain attendance on the computer with the dates specified.

Sorry for joining this conversation late. First, your choice of words is wrong. Regularizing contract labor would mean absorbing them into the main workforce of permanent and direct employees, which is definitely not what you do. Words carry a lot of power, so please be careful.

What you probably intend to say (which seems to follow from the comments on your post) is how to keep proper records of who has attended work from contractors. That is also a dangerous thing to do as there are implications for your right to use contract labor without being forced to make them permanent.

1. There cannot be any records to show that you have direct control or supervision over the employees.
2. Do not get involved in any payroll procedures.
3. If you are getting large amounts of overtime done (especially paid at a single rate by the contractor), ensure that there are no records of overtime hours available with you.

Maintaining manual records at the gate, getting them verified, and ensuring their correctness is a tough job. So the option of biometric records is a better choice. But you must show that you are using biometrics only for security reasons and not for attendance records.

If your unit is large, you may issue security gate passes to every contract employee. However, these passes must clearly state "Security Gate Pass: Allowed to enter on behalf of xyz" and have an expiry date (preferably not over 3 months).

Most of my clients follow a practice of not giving the biometric records to the contractor and ask them to keep their own records. In some cases, they give the records to them at the end of the month. Again, in a few cases, they have the contractors install biometric machines at the gate (so it becomes their record and not the company's records).

One of my clients has come up with a superb arrangement. The security ensures that everyone uses the fingerprint scanner when they enter the factory but not when leaving. This gives them the data they need to verify attendance and prevents contractors from marking false attendance. They do not give the records to the contractor. When the contractor sends attendance records for verification of payroll (after all, the principal employer is required to verify that everyone is paid proper wages), they verify with the electronic records they have obtained from the biometric.

The main advantage is that they have authentic data; at the same time, they don't have any record of how much time a person worked (whether he left at the end of the shift, did overtime, etc).

Regards.

Hi Mr. Banerjee and Mr. DG, it seems from the conversation that recording correct attendance has been a problem, or else regularizing the attendance of contractual workers is the challenge. In the latter case, I feel it is the terms of the contract that need to be worked out with the contractor, as there may be a manpower crisis for which the contractor needs to be held accountable. As for maintaining the records, the company can have parallel checks on the attendance of workers so that wages, etc., can be properly calculated.

Obviously, words matter a lot, and hence the misunderstanding. I hope my view will be of some help.

Additionally, I request that wrong indications of statutory violations, like being paid at a single rate by the contractor or ensuring that there are no records of overtime hours available with you, may not be added or encouraged in posts, as new learners on the forum might have a negative impression about the HR fraternity as well as HR practices in the industry.

Thanks,
Bijay.

Attribution: https://www.citehr.com/466654-regula...#ixzz2cgTl7fFA

It is an unfortunate situation in the country where a large number of contract workers do not receive double-rate overtime, despite there being a rule to that effect. Given that even larger companies are not paying proper overtime rates (including, as I am told, companies like Coca-Cola—a case filed by the labor commissioner in Pune pending for 7 years), smaller companies do not have the ability to correct the situation.

Another problem arises with the latest trend of giving piece-rate wages. Many principal employers no longer have the ability to enforce the payment of double-rate wages, as they are not receiving it themselves.

From the perspective of a person transitioning to electronic records and controls, they need to consider and understand what records they are creating and how it can affect them. Firstly, it provides attendance, which they will have to cross-check with registers to ensure that all those who worked are getting paid for all days.

Secondly, it will document in and out times that can be correlated with overtime records. If the company can enforce full overtime wages, then they should utilize the data. If they are unable to enforce it, it's better not to have the data. So, it's preferable to have a sign-in but not a sign-out.

Incidentally (though not directly connected), many factories are facing a significant issue with outward biometric records as the time scanners often fail to recognize fingerprints on dirty fingers after a full shift of working.

Let me make it clear: I do not condone or support anything other than paying double the rate of wages on the gross rate (not basic + DA) because that is what the law requires. I insist on this during audits we conduct and clearly state it in the report along with the financial impact of failing to comply. However, on this site, we are exchanging information to ensure all of us stay out of trouble, so it is crucial to understand how to do it.

Regards