Dear all seniors,
I would like to clarify some of my doubts.As per given information below, so that you all can give your valuable comment.
1. We have a small manufacturing company with the manpower of 30 employees ( 12 company on role ,09 Trainee for one year & 09 Contractual people)
Q Weather Contract Labour Act,1970 is applicable on us if yes than what all Registers , document & returns we should prepair all time?
2.When we start our company in Dec,2008 we were only 09 employee in this company at that time we took voluntary PF Code for our establishment & start deducting PF of our
employee but now very soon we will cross the strength of 20 people on company role , after the same is there any change in our PF Code or any other formality
From India, Bangalore
I would like to clarify some of my doubts.As per given information below, so that you all can give your valuable comment.
1. We have a small manufacturing company with the manpower of 30 employees ( 12 company on role ,09 Trainee for one year & 09 Contractual people)
Q Weather Contract Labour Act,1970 is applicable on us if yes than what all Registers , document & returns we should prepair all time?
2.When we start our company in Dec,2008 we were only 09 employee in this company at that time we took voluntary PF Code for our establishment & start deducting PF of our
employee but now very soon we will cross the strength of 20 people on company role , after the same is there any change in our PF Code or any other formality
From India, Bangalore
Dear Pradeep,
Please find my comments in blue colour
I would like to clarify some of my doubts.As per given information below, so that you all can give your valuable comment.
1. We have a small manufacturing company with the manpower of 30 employees ( 12 company on role ,09 Trainee for one year & 09 Contractual people)
Q Weather Contract Labour Act,1970 is applicable on us if yes than what all Registers , document & returns we should prepair all time? - If you are a Principal Employer then Irrespective of count of contract labour you are covered undered the Act
2.When we start our company in Dec,2008 we were only 09 employee in this company at that time we took voluntary PF Code for our establishment & start deducting PF of our
employee but now very soon we will cross the strength of 20 people on company role , after the same is there any change in our PF Code or any other formality[/QUOTE] - No
From India, Pune
467Please find my comments in blue colour
I would like to clarify some of my doubts.As per given information below, so that you all can give your valuable comment.
1. We have a small manufacturing company with the manpower of 30 employees ( 12 company on role ,09 Trainee for one year & 09 Contractual people)
Q Weather Contract Labour Act,1970 is applicable on us if yes than what all Registers , document & returns we should prepair all time? - If you are a Principal Employer then Irrespective of count of contract labour you are covered undered the Act
2.When we start our company in Dec,2008 we were only 09 employee in this company at that time we took voluntary PF Code for our establishment & start deducting PF of our
employee but now very soon we will cross the strength of 20 people on company role , after the same is there any change in our PF Code or any other formality[/QUOTE] - No
From India, Pune
Dear Pradeep
Please see the reply in red colour and your querry in blue colour.
1. We have a small manufacturing company with the manpower of 30 employees ( 12 company on role ,09 Trainee for one year & 09 Contractual people)
As per your wording given above, you might have obtained the registration under Shops and Commercial Establishment Act for your company. (if the company premises is outside the Factory Premises.
Q Weather Contract Labour Act,1970 is applicable on us if yes than what all Registers , document & returns we should prepair all time?
If you have plan to deploy contract labour in your factory, then obviously you have to register your factory under Contract labour Act, for which you can use Form 1 as per Contract Labour Rules.
2.When we start our company in Dec,2008 we were only 09 employee in this company at that time we took voluntary PF Code for our establishment & start deducting PF of our employee but now very soon we will cross the strength of 20 people on company role , after the same is there any change in our PF Code or any other formality
It is great to see your interest towards your employees future. Please keep on doing service for the betterment of your employees, which will motivate your employees and further lead to increase the value of your organisation. In the same code you can continue for everyone and even for the Contractors workmen also.
From India, Kumbakonam
Please see the reply in red colour and your querry in blue colour.
1. We have a small manufacturing company with the manpower of 30 employees ( 12 company on role ,09 Trainee for one year & 09 Contractual people)
As per your wording given above, you might have obtained the registration under Shops and Commercial Establishment Act for your company. (if the company premises is outside the Factory Premises.
Q Weather Contract Labour Act,1970 is applicable on us if yes than what all Registers , document & returns we should prepair all time?
If you have plan to deploy contract labour in your factory, then obviously you have to register your factory under Contract labour Act, for which you can use Form 1 as per Contract Labour Rules.
2.When we start our company in Dec,2008 we were only 09 employee in this company at that time we took voluntary PF Code for our establishment & start deducting PF of our employee but now very soon we will cross the strength of 20 people on company role , after the same is there any change in our PF Code or any other formality
It is great to see your interest towards your employees future. Please keep on doing service for the betterment of your employees, which will motivate your employees and further lead to increase the value of your organisation. In the same code you can continue for everyone and even for the Contractors workmen also.
From India, Kumbakonam
Hello,
For easy reference I am attaching a brief note only by way of an introduction to CLRRA act. Kindly however note that for action you must refer to the latest edition of the bare act which should be available in with any law books seller in your place.
Further your mail suggests that you have to be registered under the Factories Act and I am certain you are even if you exclude the none trainees (which you cannot if you look at the definition of "factory" and of "worker" under the Factories Act.) But more about that later of you need! Having said this the CLRRA is applicable to you, as an establishment if you employ more that twenty workers. Here you could come across the questions like are the trainees real or sham! If you assume that they are workers, you have crossed the limit of twenty workers and are bound to obtaine a registration under the CLRRA if you wish to engage contractual labour. No contractor who provides you with less than twenty workers is obliged to take a license under the CLRRA.
Once this matter is sorted out, you must remember that generally all labour legislation (excepting Bonus Act, Gratuity, Retrenchment Compensation, as applicable etc.) applicable to your establishment and to the workers will be applicable to the labour engaged through any contractor whether the said contractor on his ownn facts is covered under any labour legislation or not. This also means:
1) You are obliged to reimburse statutory minimum wages as applicable from time to time, to the contractor.
2) You have to reimburse also the incidental charges (employers contribution under ESI/PF etc.) to the contractor.
3) You may actually pay these charges under your code (registration number) showing that this payment is being made for the contractor's employees. This is permissible.
4) The contractot will have to be megtiated "service charges" also.
5) You must enter into a proper contract with the contractor. This contractual relationship should not be sham, else contractor's employees may, one day, claim direct employer-employee relationship and that could prove costly. To this end, you must not, thorugh your supervisors etc extract work performance from the contractor's workers, nor issue instructions to them nor punish them, nor should have any hand their selection or termination by the contractor.
I am stating all these at an ideal level and am aware that for small units all these precautions are not taken or followed but I feel that you must at least aware of the risks you may be taking. There are other obligations specified under the act for the principal employer (your company) and for the contractor. That is why I strongly recommens that you obtain the bare act and familiarise yourself adequately with the act since I feel, at the size of your unit, you would not have a rained HR person on rolls!
If you need additional information please do not hesitate and take a contact.
Regards
samvedan
July 25, 2011
---------------
From India, Pune
For easy reference I am attaching a brief note only by way of an introduction to CLRRA act. Kindly however note that for action you must refer to the latest edition of the bare act which should be available in with any law books seller in your place.
Further your mail suggests that you have to be registered under the Factories Act and I am certain you are even if you exclude the none trainees (which you cannot if you look at the definition of "factory" and of "worker" under the Factories Act.) But more about that later of you need! Having said this the CLRRA is applicable to you, as an establishment if you employ more that twenty workers. Here you could come across the questions like are the trainees real or sham! If you assume that they are workers, you have crossed the limit of twenty workers and are bound to obtaine a registration under the CLRRA if you wish to engage contractual labour. No contractor who provides you with less than twenty workers is obliged to take a license under the CLRRA.
Once this matter is sorted out, you must remember that generally all labour legislation (excepting Bonus Act, Gratuity, Retrenchment Compensation, as applicable etc.) applicable to your establishment and to the workers will be applicable to the labour engaged through any contractor whether the said contractor on his ownn facts is covered under any labour legislation or not. This also means:
1) You are obliged to reimburse statutory minimum wages as applicable from time to time, to the contractor.
2) You have to reimburse also the incidental charges (employers contribution under ESI/PF etc.) to the contractor.
3) You may actually pay these charges under your code (registration number) showing that this payment is being made for the contractor's employees. This is permissible.
4) The contractot will have to be megtiated "service charges" also.
5) You must enter into a proper contract with the contractor. This contractual relationship should not be sham, else contractor's employees may, one day, claim direct employer-employee relationship and that could prove costly. To this end, you must not, thorugh your supervisors etc extract work performance from the contractor's workers, nor issue instructions to them nor punish them, nor should have any hand their selection or termination by the contractor.
I am stating all these at an ideal level and am aware that for small units all these precautions are not taken or followed but I feel that you must at least aware of the risks you may be taking. There are other obligations specified under the act for the principal employer (your company) and for the contractor. That is why I strongly recommens that you obtain the bare act and familiarise yourself adequately with the act since I feel, at the size of your unit, you would not have a rained HR person on rolls!
If you need additional information please do not hesitate and take a contact.
Regards
samvedan
July 25, 2011
---------------
From India, Pune
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