Reality is, many organizations are engaging contractual supervisors, application engineers, managers, etc., through third-party payroll rather than direct employment, including nationalized and private banks.
There are organizations whose business nature involves not only selling products but also providing services. In power plants, steel plants, cement plants, etc., employees from various organizations are engaged for project works, continuous service, etc., which are carried out by contracted organizations and their subcontractors. For example:
Refractories organizations supply refractories to steel plants, cement plants, etc., and also provide services through their own personnel (managers, engineers, etc.) and subcontracted individuals (supervisors, workmen, and sometimes even managers). For any personnel entering the plant, they are considered contractual employees, whether they are managers, officers, application engineers, supervisors, or workmen.
Organizations under the Tata Group require a labor license and compliance with the Contract Labour (Regulation and Abolition) Act for all employees, regardless of their job roles. However, some other organizations are content with ensuring compliance only for workmen, while some extend it to include supervisors as well in terms of CLRA Act compliance.
The reality is as mentioned above, and there are complications present with no foolproof solutions.
S K Bandyopadhyay (WB, Howrah)
CEO-USD HR Solutions