Evaluating Labor Law Consultants: How Do You Assess Their Work and Overcome In-House Challenges?

Hi, I look forward to your valuable views on the following:

1. How to evaluate the scope of work done by a labor law consultant.
2. How much time it takes and why an in-house person cannot do it.
3. The challenges faced in this activity if handled in-house.

With warm regards, Lakshmanan

Engagement of a Labor Law Consultant

Engagement of a labor law consultant for your establishment depends on factors like the nature of activity, number of workmen, existence of trade unions, and its impact on industrial relations, etc. Routine compliance works like the preparation of wage bills, periodical payments to statutory authorities like ESI, EPF, etc., maintenance of registers and records, filing of periodical returns, etc., should be done by in-house persons. Matters relating to disciplinary cases which have legal consequences, changes in service conditions, certification or amendment to standing orders, implementation of minimum wages, fixation of bonus, etc., revision of wages and negotiations in this regard are matters involving the guidance of a consultant having experience in labor laws and industrial relations. Of course, if your HR head is well-conversant with labor laws and industrial relations and can guide his team properly, there is no necessity for a consultant.

In my opinion, you can have a consultant on a retainer basis so that he can have a thorough idea about the industry and guide you then and there.

Regards

Dear Lakshmanan Ji, I am trying to give answers to you pointwise as under:

How to evaluate the scope of work done by a labor law consultant?

Any consultant is supposed to be an expert. To evaluate the expert, you should either be an expert yourself or hire someone more expert than him and you by paying his cost.

How much time does it take and why cannot an in-house person do it?

The first part of your statement (I will not say it is a question or questions) is beyond my understanding. How much time does it take, for what? If it is to evaluate the expert, it will depend on who evaluates him. As for the second part, an in-house person can certainly do it. You need to groom him to do this expert work. Unless you have expertise in it, you cannot. Upon the in-house person leaving the job, you have to groom someone else and keep doing so every now and then. Also, during a temporary absence of such an in-house person, you have to take care of his job, leaving aside your core activity.

The challenges faced if this activity is handled in-house.

Challenges are covered in my answer at Sr. 2 above.

I hope you are satisfied with my answers. And if not, then hire my services. (Sorry, I couldn't stop myself from making humor.)

I wish to add a few lines in addition to the above.

1. You need to understand the applicable laws that pertain to you first and assess whether it can be done by you or your team.

2. Based on the above, you may have an idea of whether you require a consultant or not.

3. For the evaluation of a consultant's work, you have to consider the compliance issues that arose and how they were solved, and how much liability was saved for the company. In addition, following their advice beforehand will ensure compliance with all requirements and keep you trouble-free.

4. You need to assess your IR situation, the need for expertise to engage a consultant, and the benefits you are likely to derive, etc.

Hope this will provide some helpful insights.

Scope of Work of a Labor Law Consultant

1. The scope of work of a labor law consultant can be evaluated depending on the number of employees your establishment employs.

2. Even if you employ an in-house labor law expert, the consultancy of a labor law consultant who is independently practicing is of utmost importance. This is because they are aware of the consequences of any action you take or are going to take against any employee, as well as in framing policies or drafting letters for them.

Regards, S. K. Mittal

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Adding further, as an in-house person, management may not heed your advice or suggestion, but an outside consultant with their expertise and knowledge can explain in detail and make them follow. However, it depends on the management style.