Dear Friends,
We are a civil engineering firm with 200+ employees. We have employees who are on roll, some are consultants/retainers providing specialized services and many have been kept on job contract under labour agencies etc. The main reason for keeping them under labour agency is that they are being paid a lumpsum amount ranging from 5500 to 10000 without any deduction of PF & ESIC. The employees themselves insist they don't want PF & ESI coverage since this will reduce their take home.
As part of HR, I and my GM hv tried to convince the mgt many a times that it is mandatory to deduct PF & ESI if not from the employees then from the labour agency under which they hv been placed. Let me also tell you that the labour agencies are created from within the organisation itself and max. 8 persons are kept under 1 labour contractor.
But somehow as an HR person I am not in the favour of trying to evade statutory liabilities in this way. Yet the mgt says that big corporate giants or other industries also follow this trend, since it is not possible to take all employees on roll.
I have spoken to many people working in other organizations who are qualified yet not on company rolls and are paid a lump sum amount.
I would like to know how to manage such a large workforce not on company rolls and how other organisations are doing the same.
We are a civil engineering firm with 200+ employees. We have employees who are on roll, some are consultants/retainers providing specialized services and many have been kept on job contract under labour agencies etc. The main reason for keeping them under labour agency is that they are being paid a lumpsum amount ranging from 5500 to 10000 without any deduction of PF & ESIC. The employees themselves insist they don't want PF & ESI coverage since this will reduce their take home.
As part of HR, I and my GM hv tried to convince the mgt many a times that it is mandatory to deduct PF & ESI if not from the employees then from the labour agency under which they hv been placed. Let me also tell you that the labour agencies are created from within the organisation itself and max. 8 persons are kept under 1 labour contractor.
But somehow as an HR person I am not in the favour of trying to evade statutory liabilities in this way. Yet the mgt says that big corporate giants or other industries also follow this trend, since it is not possible to take all employees on roll.
I have spoken to many people working in other organizations who are qualified yet not on company rolls and are paid a lump sum amount.
I would like to know how to manage such a large workforce not on company rolls and how other organisations are doing the same.