Curious About Service Benefits for Contractual Staff in India? Let's Discuss Your Rights and Options

I, Abhinasha D, have been working in a central government-funded technical educational institution for the past 6 years on an outsourced contract basis. I have now decided to leave the job in pursuit of further growth opportunities. Unfortunately, in our organization, there are no rules or benefits provided for contractual staff, including leave entitlements.

Seeking Information on Service Benefits for Contractual Staff in India

I am seeking information on the service benefits available for contractual staff in India. Could you please guide me on which act or law governs the provision of benefits to outgoing employees in such contractual positions? What specific benefits are available for contractual staff in this context? If these benefits exist, I would like to include a paragraph in my resignation letter referencing the relevant law or act that binds the organization to provide such benefits.

Thank you for your assistance.

Sincerely,
Abhinasha D

Abhinasha: Please clarify the central body under which this department is working. Also, make it clear whether contract employees are receiving labour law benefits or not. In a recent judgment by the Honorable Supreme Court/High Courts, the state and central governments have been directed to provide the same benefits to contract employees as those being given to regular employees.

Thank you for your reply, Mr. Anand. At present, I'm working at NIT Karnataka, and contract employees who work for NIT Karnataka are outsourced through Karnataka Personnel Services in Mangalore, a private outsourcing company. Here, both NIT and the contractor are denying employee benefits like leaves and other related benefits as per labor law. When asking for leave from the company, they deny the request and say that such conditions are not covered under the agreement. Is it necessary to include conditions mentioned in labor law for availing employee benefits?

Additionally, NIT pays both employer and employee contributions, along with 16% establishment charges, to the contractor. Unless NIT pays the amount to the contractor, they won't proceed with salary disbursement. This process has been ongoing for the last 6 years here in NITK. Please help me in this regard.

Rights of Contract Employees Under the Contract Labour Act

A contract employee has all the rights given under the Contract Labour Act. Additionally, they are generally eligible for all rights under the relevant act that the organization falls under. If it were a factory or office, it would be straightforward. However, educational institutes are covered under neither.

Under the rules, you are entitled to receive your salary by the 7th of the next month. You are eligible for minimum wages, PF, and ESIC. If nothing is stated, you would receive leave as per your state's Shop and Establishment Act and the Standing Orders of the state.

But if you are leaving, why bother with all this? Simply walk away and focus on your career. It's not that your employer didn't know the rules; it's that they don't bother to follow them, and teaching them a lesson is too costly for you. Find a better job and move on.