Facing Local Party Pressure in Contract Labor Termination: Is Reporting or Negotiation the Solution?

We are facing a problem regarding the termination of contract labor because all the contract laborers are supplied by the local party. When we try to terminate them, they initiate a gherao, with local party people also involved behind it. If I inform the labor commissioner, will it be effective? Will they solve this issue, avoiding party pressure? Or should I opt for negotiation? According to the law, we can terminate them, but we need some realistic solutions beyond the legal barrier. I hope everyone understands what I am trying to say.

I would suggest that you inform the Labour Department of the situation. Before that, be sure that you have complied with what the law (Contract Labour Act) states, i.e., you have taken the required registration or are not required to take it for the reason that you employ fewer than 20 laborers. You have engaged them in works that are not perennial in nature, you have ensured that the contractor has been paying them at least the minimum wages, and he has been remitting the PF, ESI, etc., in respect of these employees. Above all, you have to be sure that there is a "contractor" and the contract is not a sham arrangement.

Now coming to reality, it is difficult to face such a situation where the matter is taken over by the local (political) people. Therefore, it is always better to involve the department. The conciliation will be an amicable one; you will also have to compromise on certain things.

Regards,
Madhu.T.K

I would suggest that you inform the Labour department of the situation. Before that, be sure that you have complied with what the law (Contract Labour Act) states, i.e., you have taken the required registration or are not required to take it for the reason that you employ only fewer than 20 laborers, you have engaged them in works that are not perennial in nature, you have ensured that the contractor has been paying them at least the minimum wages, and he has been remitting the PF, ESI, etc., in respect of these employees, etc. Above all, you have to be sure that there is a "contractor" and the contract is not a sham arrangement.

Now coming to reality, it is difficult to face such a situation where the matter is taken over by the local (political) people. Therefore, it is always better to involve the department. The conciliation will be an amicable one; you will also have to compromise on certain things.

I agree with Madhu Sir, but in the same line, I would like to add some more things. Are you directly terminating contract labor, or have you informed your contractor? You have to speak to your contractor for the recruitment or termination of contract labor. Why are you involving yourself directly in this matter? Anyway, if a gherao and all such types of incidents are happening, then you have to seek support from the police and inform the local people regarding the Contractor Labour Act. Don't work under any pressure because if you come under pressure today, then local people will always pressure you.

Always maintain clarity in the factory so that there is no compromise in rules and regulations, and if something occurs, it will be handled by the company management, not by local leaders. Don't be afraid; call the police, but keep in mind your company's production must never stop.

Regards