Engaging employees through 3rd party ( Contractors/outsourced agent ) should be thought of judiciously. Many organizations are engaging people through contractors with a fixed terms monitory contract and forget every thing. In those cases the contractors to make the more profit- pay less to contract labor , non compliance of PF, ESI etc. etc.
To my opinion the ideal condition should be to calculate the actual cost to be borne by the contractor- Salary/wage + employer portion of PF & ESI + Uniform if any + any other incidental cost etc. Then to be considered certain % or fixed service charge for contractor. PE must borne all cost, otherwise there will be exploitation of contract labor. PE has to ensure implementation of all above very systematically.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
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