Can We Restrict Contract Workers After Their Settlement to Avoid Industrial Issues?

As our company is a manufacturing company, where both permanent and contract laborers are working, our contractor has completed the Full & Final settlement of his employees who have worked for the company for more than 9 years. In order to prevent their Provident Fund amounts from being diverted into a pension scheme, the contractor has settled with his employees. However, these laborers are still working in our company. I need advice on whether we can prevent the contract laborers from entering the plant based on the Full & Final Settlement. Your prompt guidance is greatly appreciated as this situation could potentially lead to industrial relations issues.

Thank you.

Employee Welfare and Provident Fund Management

This approach seems like blocking the welfare of employees, especially when there are no benefits available after retirement. If someone is looking for welfare, they will need to transfer the amount to a new PF number to continue the service.

To avoid industrial relations issues, you should plan to gradually stop them by showing that production is low or by taking some disciplinary action. Give them a break, and then you can bring them back with new details. Assign this work to a contractor. You shouldn't involve yourself directly in this matter. I think this is the procedure that most companies are following.

Thanks.

Dear Pussy Cat,

When the contractor has settled those workmen fully and finally once for all, in what capacity are they now permitted to work in your establishment - as direct labor or through some other contractor?