Contract Workers Becoming Regular Employees: How Can I Prevent This Transition?

When a contract worker is eligible to become a regular worker. Please advise me on how to avoid this type of situation if such a problem arises.

Distinguishing Regular Workmen and Contract Labor

I am not sure what exactly is the answer you expect. Employment of regular workmen and engagement of contract labor in the works of the same establishment are distinguishable in terms of the nature of works and employment relationship. Not only from a legal perspective but also from the point of employment ethics.

The core or main activity of the establishment, which requires close supervision, has to be done or carried out through regular workmen to ensure operational continuity and quality. Incidental works may be entrusted to contractors to be done by their workmen, called contract labor. Even though the works done by the contract labor are also of the same establishment, the employment relationship is indirect due to the presence of an intermediary, namely the contractor, who only has direct control over them.

So, as long as the presence of a contractor exists, whether actual or on paper, between the principal employer and the contract labor, the question of contract labor becoming eligible to be absorbed as regular workmen does not arise. If the engagement of contract labor is genuine and bona fide, such a situation cannot arise.

Rightly said by Umakanthan sir. The post related to taking strategic decisions, close supervision, and monitoring should be done by direct employment, while jobs related to day-to-day activities, assistance, and supporting staff can be done through Contract Labour.

Even when we apply for a Labour Licence/Registration Copy (RC), the Labor Officer demands an affidavit certifying that "workmen employed by me/my company (contractor) are not performing the same and similar kind of work as the workmen directly employed by the establishment (PE) are performing."

Moreover, when you engage Contract Labour, clearly mention in the Agreement: "It is clearly understood and agreed by and between the parties that PE shall not be held responsible or liable under the laws that are in force and that may come into force from time to time, in respect of the personnel of the Contractor, and the Contractor alone shall be solely responsible for their terms and conditions of services, safety, etc., and on no account shall the personnel of the Contractor be deemed to be employees of PE."

Hope this clarifies the matter in detail.