Understanding Employee Classification Under CLRA
Dear Software Engineers, you need to determine whether they fall within the CLRA. The definition of an employee under CLRA is as follows:
The term "workman," as defined in clause (i) of Section 2 of the CLRA, is as follows: A workman means any person employed in or in connection with the work of any establishment to do any skilled, semi-skilled, or unskilled manual, supervisory, technical, or clerical work for hire or reward, whether the terms of employment are express or implied. However, it does not include:
- (A) a person employed mainly in a managerial or administrative capacity;
- (B) a person employed in a supervisory capacity drawing wages exceeding five hundred rupees per month or exercising functions mainly of a managerial nature; or
- (C) an out-worker, meaning a person to whom any articles and materials are given out by or on behalf of the principal employer to be processed for sale for the purposes of the trade or business of the principal employer, and the process is carried out either in the out-worker's home or in premises not under the control of the principal employer.
As per the same SAIL judgment, the definition is quite lucid. It consists of two limbs. The first limb defines a workman as any person employed in or in connection with the work of any establishment to do skilled, semi-skilled, or unskilled, supervisory, technical, or clerical work for hire or reward. The terms of employment, whether express or implied, are immaterial. The second limb includes three exclusionary classes: (A) managerial or administrative staff; (B) supervisory staff earning a salary exceeding Rs. 500 per month; and (C) an out-worker, which refers to a person to whom articles and materials are given out by or on behalf of the principal employer for processing for sale, and the process is carried out either in the out-worker's home or in another place not under the control of the principal employer.
Recently, the ID Act has increased the salary limit to Rs. 10,000, but CLRA has not been amended, and the same Rs. 5,000 limit continues.
Kindly review the above definition and decide for yourself.
Also, please see our posts at
https://www.citehr.com/285737-legal-...#axzz15hCR7r00
Regards,
V. Sounder Rajan
Advocates & Notaries & Legal Consultants for the Flexi Staffing Industry
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