Why Are Workers Outsourced To Third Party Payroll

I am working as HR executive with a manufacturing company. Around 300 employees are outsourced on payroll of third party. Can you please let me know why are workers outsourced to third pary. what are the advantages of it.
Regards
Veena

Hi Veena,
Usually Companies keep soem of the workers on the payrolls of third party to reduce the costs which are incurred to the company.
If the worker is on the pay rolls of the company, he will be eligible for all the welfare activities which the company do and in turn it will cost the company. They can even pay less amount in terms of salaries to the workers if they are on the pay rolls of the third party.
Outsourcing the workers is a great advantage to the company. Usually, Companies make a worker Permanent, if he does a great work and this permanent employement would make him to stay with the company for a longer time period.
Regards,
Gowtam

It is wrong perception workmen outsource on third party payroll, cost less or benefits are given less. You have to give all the minimum required benefits to the outsourced staff governed by the statutory, though contract employement is legal actually you can only take contract staff for those activities which are incidental to your main business and have no direct relation to main business.
Here company is benefited that if at any point of time that activity is stoped or gets redundant then you can cut down that staff at lower cost as they are not dierctly linked to the company. So we have to be very causious about how we use this provision of the law.
Thanks & Regards
Amal Shere

Can anyone tell me what is the normal service charge charged by the entity providing these outsourcing services & what are their obligations?
Regards,
Nehal Ganatra

Dear Friends
This Is raghu
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It is wrong perception workmen outsource on third party payroll, cost less or benefits are given less. You have to give all the minimum required benefits to the outsourced staff governed by the statutory, though contract employement is legal actually you can only take contract staff for those activities which are incidental to your main business and have no direct relation to main business.
Here company is benefited that if at any point of time that activity is stoped or gets redundant then you can cut down that staff at lower cost as they are not dierctly linked to the company. So we have to be very causious about how we use this provision of the law.