Contract Labor and Principal Employer Dynamics in India
In the Indian industry, culturally, contract labor, though engaged through a contractor, often feels like an employee of the Principal Employer. Moreover, most contractors lack knowledge about labor laws, disciplinary procedures, etc. Usually, these contractors, after receiving information from the Principal Employer, inform the contract labor as if it is the decision of the Principal Employer to terminate their job.
Under these circumstances, it is always better to advise the contractor to settle the issue with the contract labor amicably and, if necessary, to pay some token compensation to stop all nuisance activities.
Challenges with Unionized Support
Usually, permanent employees have some mental support towards the contract labor, and if there is a union, it becomes further complicated. This is the reality in most organizations.
Regards, S K Bandyopadhyay (WB, Howrah) CEO - USD HR Solutions [Phone Number Removed For Privacy-Reasons]