Most companies are engaging Operation & Maintenance teams for their plants. Do the O&M employees—mainly managers and engineers—deserve to be treated on par with principal employer staff? Are managers and engineers (both technical and non-technical) of an O&M company considered contract labor?
From India, Bhopal
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From India, Bhopal
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Engaging Contract Labor in Core Areas of Operations
Whether any principal employer can engage contract labor in core areas of operations is a question of law. Since operations and maintenance are activities directly connected with the business of the organization, persons cannot be engaged through a contractor.
Outsourcing Managers and Engineers
If engineers and managers are engaged through a contractor or outsourced payroll, they are certainly considered contract labor. In scenarios where managers and engineers are outsourced, they will not have any managerial or supervisory control over the operations or respective functions of the principal employer's business. These managers cannot supervise the employees of the principal employer, decide what the employees should do, initiate any disciplinary action against them, approve their leaves, or evaluate their performance. Then how can they be called managers? They may be managers by designation or in relation to the employees of the same contractor as an employer, but in relation to the establishment where they are working and the employees of that establishment, they are only workmen under the scope of the Contract Labor (Regulation and Abolition) Act.
From India, Kannur
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4526Whether any principal employer can engage contract labor in core areas of operations is a question of law. Since operations and maintenance are activities directly connected with the business of the organization, persons cannot be engaged through a contractor.
Outsourcing Managers and Engineers
If engineers and managers are engaged through a contractor or outsourced payroll, they are certainly considered contract labor. In scenarios where managers and engineers are outsourced, they will not have any managerial or supervisory control over the operations or respective functions of the principal employer's business. These managers cannot supervise the employees of the principal employer, decide what the employees should do, initiate any disciplinary action against them, approve their leaves, or evaluate their performance. Then how can they be called managers? They may be managers by designation or in relation to the employees of the same contractor as an employer, but in relation to the establishment where they are working and the employees of that establishment, they are only workmen under the scope of the Contract Labor (Regulation and Abolition) Act.
From India, Kannur
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Definition of contract labor
In layman's language, a contract laborer is a person working on your premises due to an agreement with their actual (direct) employer to deliver a result other than the pure sale of goods.
It does not matter if the person is a manager or engineer. If they are working in your factory, they are considered a contract worker.
Exception for supervisors
The exception is for a supervisor (manager) deployed by the contractor (in your case, the OEM) who has no actual work duty other than supervising the deployed team. Otherwise, they are all contract workers.
Treatment of contract workers
The contract workers or team need not be treated on par with your own employees. They can and will have a different schedule, leave, time, etc. You only need to ensure they don't violate labor laws, pay overtime, etc.
From India, Mumbai
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In layman's language, a contract laborer is a person working on your premises due to an agreement with their actual (direct) employer to deliver a result other than the pure sale of goods.
It does not matter if the person is a manager or engineer. If they are working in your factory, they are considered a contract worker.
Exception for supervisors
The exception is for a supervisor (manager) deployed by the contractor (in your case, the OEM) who has no actual work duty other than supervising the deployed team. Otherwise, they are all contract workers.
Treatment of contract workers
The contract workers or team need not be treated on par with your own employees. They can and will have a different schedule, leave, time, etc. You only need to ensure they don't violate labor laws, pay overtime, etc.
From India, Mumbai
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Dear Sundarvel, The treatment of Operation and Maintenance (O&M) employees, including managers and engineers, in comparison to principal employer staff can vary depending on the specific terms of employment, industry standards, and local labor laws. It's essential to consider various factors to determine how these employees should be treated:
Employment Relationship
O&M employees may be directly employed by the company providing the operation and maintenance services or may be contracted through a third-party O&M company. If they are directly employed, they may have the same status and benefits as other staff members.
Contractual Agreements
The terms and conditions of employment, as outlined in the employment contracts or agreements, play a crucial role. This includes salary, benefits, job responsibilities, and any other relevant provisions.
Labour Laws
Labour laws dictate the rights and protections afforded to employees. It's important to understand and comply with these regulations to ensure fair treatment.
Job Roles and Responsibilities
The nature of the work performed by O&M employees, whether technical or non-technical, can influence how they are categorized. Some roles may be considered contract labor, while others may be treated as permanent staff.
Equal Treatment
Fair and equal treatment is a fundamental principle in employment. If O&M employees perform similar roles and responsibilities as principal employer staff, they may deserve comparable treatment in terms of benefits, working conditions, and opportunities for advancement.
It's crucial for companies to adhere to labor laws and ethical employment practices to ensure that all employees, regardless of their role or contractual arrangement, are treated fairly. If there are concerns about the classification of O&M employees or the fairness of their treatment, it is advisable to consult with legal professionals or labor authorities to ensure compliance with relevant regulations.
Thanks
From India, Bangalore
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Employment Relationship
O&M employees may be directly employed by the company providing the operation and maintenance services or may be contracted through a third-party O&M company. If they are directly employed, they may have the same status and benefits as other staff members.
Contractual Agreements
The terms and conditions of employment, as outlined in the employment contracts or agreements, play a crucial role. This includes salary, benefits, job responsibilities, and any other relevant provisions.
Labour Laws
Labour laws dictate the rights and protections afforded to employees. It's important to understand and comply with these regulations to ensure fair treatment.
Job Roles and Responsibilities
The nature of the work performed by O&M employees, whether technical or non-technical, can influence how they are categorized. Some roles may be considered contract labor, while others may be treated as permanent staff.
Equal Treatment
Fair and equal treatment is a fundamental principle in employment. If O&M employees perform similar roles and responsibilities as principal employer staff, they may deserve comparable treatment in terms of benefits, working conditions, and opportunities for advancement.
It's crucial for companies to adhere to labor laws and ethical employment practices to ensure that all employees, regardless of their role or contractual arrangement, are treated fairly. If there are concerns about the classification of O&M employees or the fairness of their treatment, it is advisable to consult with legal professionals or labor authorities to ensure compliance with relevant regulations.
Thanks
From India, Bangalore
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Kami Export - Negative Covenant in Contract of Employment.pdf (1).pdf