Outsourcing Dilemma: Can Contract Workers Claim Permanent Employment and Form Unions?

Hi Friends,

We have outsourced the housekeeping to a contractor. Can a person who has completed 240 days or over a year claim permanent employment with the principal employer? Can persons working for a contractor form a union and pressure the principal employer to take them on their rolls? What are the formalities required to be done when taking a contractor? We have 3-4 contractors for different jobs in our organization.

Understanding Legal Implications of Outsourced Labor

Laws or contracts related to outsourced labor, such as housekeeping services, are essential to ensure compliance and protection for both parties involved. In the event of any mishap occurring with outsourced labor within a company's premises, it is crucial to understand the legal implications and potential liabilities.

Outsourced laborers may have certain rights under employment laws or contractual agreements that could enable them to take legal action if they are harmed or injured while performing their duties on the company's premises. It is important for companies to be aware of their obligations and responsibilities towards outsourced laborers to prevent any legal repercussions in case of accidents or mishaps.

It is advisable to consult with legal experts or human resources professionals familiar with labor laws and contract management to ensure that all necessary precautions are taken to protect both the company and the outsourced laborers in such situations.

For these types of queries regarding contract labor, the government has formed an act, i.e., the Contract Labour (Regulation & Abolition) Act, 1970. My advice is to bring all your contractors under the umbrella of the Contract Labour (Regulation & Abolition) Act, 1970. Then, you will never face these types of problems.

Regards,
Manoj Prasad
[Phone Number Removed For Privacy Reasons]

SAIL Judgment and Contract Labor Claims

Please see the SAIL judgment. It will give you the answers. After this judgment, contract labor claiming permanency can only be through the Industrial Adjudication process, which is long and drawn out. The Industrial Adjudicator will apply the SAIL verdict test and then decide the claim for permanency.

Regards,
Rajan Associates

Please see: https://www.citehr.com/285737-legal-...#ixzz1WaYS87F2

Contractual Employment and Permanency Claims

If the contract is genuine and not a sham, then the employees engaged through a contractor cannot claim permanency under any circumstance. On the other hand, if the contract is a sham or just for namesake and all decisions relating to the contract labor, such as wage fixation, selection, and disciplinary action, are made by the principal employer, then the contract employees can claim permanency. This advice is provided by Rajan Associates through the Tribunal.

Union Formation by Contract Workers

Contract workers can form a trade union, but their bargaining will be with the contractor only; the principal employer should not interfere. If the union pressures the principal employer on any matter, it should be addressed immediately with the intervention of the Labor Department or other dispute redressal machinery.

Regards,
Madhu.T.K