Do you mean any remedy for this or something else to safeguard the interest of the employer?
First of all as per the Contract Labour (Regulation and Abolition) Act you can not have contract labour on works of perennial or recurring nature which is incidental to the main activities of the company. In your case, I think you are engaging the contract workers in core areas of operations, that it is understandable that you do not require housekeeping, security or other casual workers ten times more than the employees employed for production. That means there is clear violation of legal provisions in this regard. Therefore, therefore, you will not get the protection of law.
If you need remedy for this, you can have, you just take all those who are engaged in routine, perennial or works which require engagement of permanent workers, in to your rolls and start paying their wages directly. This is the only solution. By doing this you become safe both in terms of law as well as financially because by engaging a contractor you must be paying a good amount to him as his service charges in return for no service. You have to take care of the remittances of PF, ESI, payment of wages, Bonus etc and at the same time you do not have any direct control over the workers also. You can not take any disciplinary action against any of them, you can not make them follow the HR or other policies or just Standing Orders of the company. If you put pressure on them, legally, that will prove against you with issues of sham contract etc. Then why should we go for off roll system? If they organize themselves, we should get involved in their negotiation etc and if we have to do that the picture would become very clear that this arrangement is just a windscreen. That was why while delivering the verdict in Bhilwara Dugdh Utpadak Sahakari S. Ltd. Vs. Vinod Kumar Sharma Dead by LRS & Ors. The Supreme Court has said that “…… this new technique of subterfuge has been adopted by some employers in recent years in order to deny the rights of the workmen under various labour statutes by showing that the concerned workmen are not their employees but are the employees/workmen of a contractor, or that they are merely daily wage or short term or casual employees when in fact they are doing the work of regular employees. This Court cannot countenance such practices any more. Globalization/liberalization in the name of growth cannot be at the human cost of exploitation of workers”.
Madhu.T.K