Is it allowed to keep maximum employees on contract basis or by ousource basis? When a company wants to keep very less on roll employees? What the Factory Act Says about it?
From India, Delhi
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1From India, Delhi
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There is no restriction on the number of contract laborers that can be deployed in the factory premises as per the Factories Act of 1948; however, all of them would be considered as 'workers'. The restriction on the deployment of contract labor comes from the Contract Labor (Regulation & Abolition) Act, which makes it illegal to deploy contract labor in prohibited trades. I hope that your business does not fall under any such prohibited trade. Many organizations have a majority of contract workers, but whether this is a good practice or not remains a debatable point.
Regards,
KK
From India, Bhopal
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Regards,
KK
From India, Bhopal
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Contract Labour Act.zip
SELF-CERTIFICAT E PROFORMA UNNDER CONTRACT LABOUR (R&A) ACT, 1970.doc
FACTORY ACT 1948.xls