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b_sujay2002
Dear All, My Question is: When we will temporary close (15 days) our factory for Maintenance issue, contract labour are eligible for get Lay-off compensation or not? Regards, Sujay
From India, Chennai
natraj@sakthimanagement.com
199

Dear Mr Sujay
The very purpose of engaging contract workers is only to provide work whenever required. Pl inform the Contractor to ask the workers to come for work when the work in the Factory resumes. Though the contract workers are also workers under the Industrial Disputes Act for some purposes like raising an industrial dispute and claiming certain statutory benefits against the Contractor etc.,, they need not be paid any lay-off compensation. In fact regular Company workers are not eligible for any lay-off compensation under Chapter V A of the ID Act, if the Company is employing less than 50 workers in their Factory.
Regards
N Nataraajhan, Sakthi Management Services (HP: +91 94835 17402 ; e-mail: )

From India, Bangalore
samvedan
315

Hello,
With due respect to all in the thread, I state that a workman employed by a Contractor is NOT covered in the definition of a "workman" in the ID Act 1947. Therefore applicability of any provisions of the said act is out of question.
You may (depending upon exact stipulations between the Company and the Contractor) ask the Contractor discontinue providing certain number of workmen during the period of lay off.
This depends, of course that the Contract between the Company and the Contractor is NOT sham and that compliances are proper.
Regards
samvedan
January 16, 2015
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From India, Pune
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