Hi,
Can anyone please tell me the rules and regulations regarding Contract Labour Deployment in any company and what are the minimum wages to be paid to such contract laborers in Maharashtra?
Thanks in advance.
Shiva
From India, Pune
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Can anyone please tell me the rules and regulations regarding Contract Labour Deployment in any company and what are the minimum wages to be paid to such contract laborers in Maharashtra?
Thanks in advance.
Shiva
From India, Pune
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There is no separate list of minimum wage for contract labor. The existing legislation Contract Labour Regulation and Abolition Act is silent on the issue. The wage is decided by the Minimum Wage Act only.
H.R. Singh
From India, Ghaziabad
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H.R. Singh
From India, Ghaziabad
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Minimum wage rates in a manufacturing company are renewed every 6 months. From 01.10.05 to 31.03.06, Hindustan Steel Ltd paid 126.50 per day to unskilled labor, 93.61 to semi-skilled labor, and 98.00 to skilled labor.
The latest minimum wage rates are now fixed as follows:
- HSLT: 130.96 per day
- RPFC:
- Unskilled labor: 93.11 per day
- Semi-skilled labor: 97.26 per day
- Skilled labor: 101.50 per day.
From India, Lucknow
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The latest minimum wage rates are now fixed as follows:
- HSLT: 130.96 per day
- RPFC:
- Unskilled labor: 93.11 per day
- Semi-skilled labor: 97.26 per day
- Skilled labor: 101.50 per day.
From India, Lucknow
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Dear Shiva,
The Minimum Wages Act is a separate piece of legislation that notifies the Minimum Wages payable to a Class of Workers or Industry covered by the Schedule on a bi-yearly basis. This schedule may vary from one state to another.
On the other hand, the Contract Labour Act deals with Contract Labour employment in industries to which the Act applies and Relevant State and Central Rules. So, when deciding on the payment of Minimum Wages, please contact the Circle Labour Inspector for details. For example, the Minimum Wages vary for the same class of worker in different regions of West Bengal.
The main thing to remember is that the status of employment, i.e., contract, casual, or badli, has no effect or link with the Minimum Wages rate of a region.
Kind Regards,
SC
From India, Thane
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47The Minimum Wages Act is a separate piece of legislation that notifies the Minimum Wages payable to a Class of Workers or Industry covered by the Schedule on a bi-yearly basis. This schedule may vary from one state to another.
On the other hand, the Contract Labour Act deals with Contract Labour employment in industries to which the Act applies and Relevant State and Central Rules. So, when deciding on the payment of Minimum Wages, please contact the Circle Labour Inspector for details. For example, the Minimum Wages vary for the same class of worker in different regions of West Bengal.
The main thing to remember is that the status of employment, i.e., contract, casual, or badli, has no effect or link with the Minimum Wages rate of a region.
Kind Regards,
SC
From India, Thane
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Dear Satish,
You have asked for minimum wages for contract labor as per CLRA. It is clarified that no minimum wages are fixed as per CLRA, i.e., Contract Labor (Regulation and Abolition) Act, 1970. Minimum wages are fixed under The Minimum Wages Act, 1948, and the rates declared for different scheduled employments by the appropriate government are the same for directly and indirectly employed employees. Under CL (R&A) Act and rules, if the work done by the contract workers is the same or similar to that of the employer's workmen, then in that case, wage rates will be the same as that of directly employed workers.
Comments are submitted as per your request.
Regards,
R.N. Khola
From India, Delhi
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You have asked for minimum wages for contract labor as per CLRA. It is clarified that no minimum wages are fixed as per CLRA, i.e., Contract Labor (Regulation and Abolition) Act, 1970. Minimum wages are fixed under The Minimum Wages Act, 1948, and the rates declared for different scheduled employments by the appropriate government are the same for directly and indirectly employed employees. Under CL (R&A) Act and rules, if the work done by the contract workers is the same or similar to that of the employer's workmen, then in that case, wage rates will be the same as that of directly employed workers.
Comments are submitted as per your request.
Regards,
R.N. Khola
From India, Delhi
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Dear all,
First of all, I would like to inform you that there is no separate minimum wage for direct and indirect labor. The appropriate government, under the Minimum Wage Act, publishes a circular every six months regarding this matter. If you are a member of the CII, then CII will also publish the same information with the government labor authority. The rates vary depending on the type of employment.
Regards,
Nayan
From India, Pune
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First of all, I would like to inform you that there is no separate minimum wage for direct and indirect labor. The appropriate government, under the Minimum Wage Act, publishes a circular every six months regarding this matter. If you are a member of the CII, then CII will also publish the same information with the government labor authority. The rates vary depending on the type of employment.
Regards,
Nayan
From India, Pune
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Dear Shiva,
The minimum wage rates vary for different zones. For details, please visit the website on minimum wages in Maharashtra. The rates change every six months.
Regards,
Nayan
From India, Pune
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The minimum wage rates vary for different zones. For details, please visit the website on minimum wages in Maharashtra. The rates change every six months.
Regards,
Nayan
From India, Pune
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DEPLOYMENT OF CONTRACT LABOUR
HR MANUAL---SOP
1. MANPOWER PLANNING:
• Each production Unit (PU)/Department will take the monthly manpower planning from the ME department every month.
• Manpower planning is necessitated due to the following reasons:
i. Enhancement in customer orders.
ii. Separation due to resignation, completion of break period.
iii. Time-bound jobs for temporary nature/leave vacancies.
iv. Heavy maintenance or other emergencies.
• The ME Department will review and work out the manpower requirements in view of the company's business/targets, giving proper justification. The ME Department will take the approval of the Sr. VP and forward the same to the HR department. The HR Department will ensure that the manpower is made available as per the approved/sanctioned manpower.
2. RECRUITMENT:
Recruitment will be done through a contractor. The contractor will give first preference to old/past employees. Experienced employees of the same trade will be given additional weightage.
3. SELECTION PROCEDURE OF CONTRACT LABOUR
• The HR Department will provide the manpower requisition to the contract supervisor.
• Contract supervisors will provide the quality of labour according to the skill required by the department.
• To permit the contract labour inside the company, the contract supervisor will write the name & address of the contract labour on the slip. The slip will be signed by the HR head and submitted at the gate before entry.
• Security personnel will check each person's identity as mentioned in the slip and make a record of all contract labour.
• A trade test/practical will be conducted by the HR Department, and candidates passing the test with minimum cutoff marks shall be shortlisted for an interview and final selection.
• The HR department, in consultation with the concerned Department, will set up an interview committee consisting of HR personnel/Department Manager.
• The committee shall assess the candidates based on the factors mentioned below in a prescribed format and give its recommendations for approval by the HR Head.
• The following weightage will be given in the final evaluation to the different factors:
FACTORS | MARKS (MAXIMUM)
Qualification | 10
Experience | 10
Tests (Practical/written) | 40
Interview performance (Personality, clarity of expression, attitude) | 40
Total | 100
• Selected contract labour will be on trial for three days and will mark their attendance at the gate.
• The contract supervisor will collect the performance report of each contract labour on trial. Based on the trial report, he will seek permission for punching the attendance of contract labour. (Trial Report format enclosed- Annexure –A)
• The contract supervisor will daily check the movement (entry/exit) of the contract labour and will ensure to maintain the record of each individual contract labour.
• Salary will be prepared on the basis of savior data.
• Entry Level and Wage Fixation will be as per Annexure-2.
• Experienced candidates may be placed in higher Basic on the basis of prior service/experience and qualification.
• The HR Department will maintain a pool of 20-25 contract labour with them. The labour from the pool will be placed in the respective department to cope with absenteeism. The Contract labour will daily report to the HR cell, and the HR cell will monitor their attendance with the help of the contractor.
4. MEDICAL EXAMINATION:
Contract labour selected for employment before joining will be required to undergo a premedical examination by the company's medical officer. If the contract labour is declared unfit for employment, their selection will be cancelled.
5. SERVICE DURATION:
• All contract labour will be inducted for a period of seven months.
• HR Personnel will also maintain a register of contract labour where their month-wise days attended will be recorded.
• After the successful completion of the seventh month in the contractor role, the contract labour will be placed in FTS (Fixed Term Service) for a period of one year.
• After FTS, no labour will work in the company further. However, they can join afresh after a period of five months, repeating the same cycle starting with induction of seven months and ending with FTS. The labour recruited again after a gap of five months will be given some increment in their wages.
A- Contractor Reward/Penalty
1. It is the duty of the contractor to sustain the contract labour working under him. The daily track record will be maintained by the Contractor. There will be a provision of an additional Bonus if the worker inducted by him continues his service for a period of six months under him. The contractor will receive the bonus amount as follows:
2. On completion of six months, an amount of Rs 100 per worker will be an additional bonus over and above the service charges. The contractors can claim their bonus amount after six months. To reimburse the bonus amount, he will have to fill up a format describing the date of joining, days worked month-wise, etc. The records will have to be approved by the shop floor in charge. The HR Department will check the records of the contract labour and process the same for payment by the account department for reimbursement.
If the inducted contract labour leaves the company before six months, an amount of Rs 150 per worker will be fined to the contractor. The same will be deducted from their wage bill.
B- Physical Attendance
Physical attendance will be taken by the contractor at the shop floor in each shift, to be duly certified by the section in charge. An employee of the Time office will check the physical attendance of the contract supervisor through Saviour.
6. IDENTITY CARD
The contractor will ensure that the contract labour will prominently wear their identity card at all times during working hours, including the time of entry and exit from the security gate, failing which the contract labour will be denied entry into the plant and will be treated as absent from duties.
Regards,
Deepak Pandey
DGM-HR
From India, Gurgaon
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HR MANUAL---SOP
1. MANPOWER PLANNING:
• Each production Unit (PU)/Department will take the monthly manpower planning from the ME department every month.
• Manpower planning is necessitated due to the following reasons:
i. Enhancement in customer orders.
ii. Separation due to resignation, completion of break period.
iii. Time-bound jobs for temporary nature/leave vacancies.
iv. Heavy maintenance or other emergencies.
• The ME Department will review and work out the manpower requirements in view of the company's business/targets, giving proper justification. The ME Department will take the approval of the Sr. VP and forward the same to the HR department. The HR Department will ensure that the manpower is made available as per the approved/sanctioned manpower.
2. RECRUITMENT:
Recruitment will be done through a contractor. The contractor will give first preference to old/past employees. Experienced employees of the same trade will be given additional weightage.
3. SELECTION PROCEDURE OF CONTRACT LABOUR
• The HR Department will provide the manpower requisition to the contract supervisor.
• Contract supervisors will provide the quality of labour according to the skill required by the department.
• To permit the contract labour inside the company, the contract supervisor will write the name & address of the contract labour on the slip. The slip will be signed by the HR head and submitted at the gate before entry.
• Security personnel will check each person's identity as mentioned in the slip and make a record of all contract labour.
• A trade test/practical will be conducted by the HR Department, and candidates passing the test with minimum cutoff marks shall be shortlisted for an interview and final selection.
• The HR department, in consultation with the concerned Department, will set up an interview committee consisting of HR personnel/Department Manager.
• The committee shall assess the candidates based on the factors mentioned below in a prescribed format and give its recommendations for approval by the HR Head.
• The following weightage will be given in the final evaluation to the different factors:
FACTORS | MARKS (MAXIMUM)
Qualification | 10
Experience | 10
Tests (Practical/written) | 40
Interview performance (Personality, clarity of expression, attitude) | 40
Total | 100
• Selected contract labour will be on trial for three days and will mark their attendance at the gate.
• The contract supervisor will collect the performance report of each contract labour on trial. Based on the trial report, he will seek permission for punching the attendance of contract labour. (Trial Report format enclosed- Annexure –A)
• The contract supervisor will daily check the movement (entry/exit) of the contract labour and will ensure to maintain the record of each individual contract labour.
• Salary will be prepared on the basis of savior data.
• Entry Level and Wage Fixation will be as per Annexure-2.
• Experienced candidates may be placed in higher Basic on the basis of prior service/experience and qualification.
• The HR Department will maintain a pool of 20-25 contract labour with them. The labour from the pool will be placed in the respective department to cope with absenteeism. The Contract labour will daily report to the HR cell, and the HR cell will monitor their attendance with the help of the contractor.
4. MEDICAL EXAMINATION:
Contract labour selected for employment before joining will be required to undergo a premedical examination by the company's medical officer. If the contract labour is declared unfit for employment, their selection will be cancelled.
5. SERVICE DURATION:
• All contract labour will be inducted for a period of seven months.
• HR Personnel will also maintain a register of contract labour where their month-wise days attended will be recorded.
• After the successful completion of the seventh month in the contractor role, the contract labour will be placed in FTS (Fixed Term Service) for a period of one year.
• After FTS, no labour will work in the company further. However, they can join afresh after a period of five months, repeating the same cycle starting with induction of seven months and ending with FTS. The labour recruited again after a gap of five months will be given some increment in their wages.
A- Contractor Reward/Penalty
1. It is the duty of the contractor to sustain the contract labour working under him. The daily track record will be maintained by the Contractor. There will be a provision of an additional Bonus if the worker inducted by him continues his service for a period of six months under him. The contractor will receive the bonus amount as follows:
2. On completion of six months, an amount of Rs 100 per worker will be an additional bonus over and above the service charges. The contractors can claim their bonus amount after six months. To reimburse the bonus amount, he will have to fill up a format describing the date of joining, days worked month-wise, etc. The records will have to be approved by the shop floor in charge. The HR Department will check the records of the contract labour and process the same for payment by the account department for reimbursement.
If the inducted contract labour leaves the company before six months, an amount of Rs 150 per worker will be fined to the contractor. The same will be deducted from their wage bill.
B- Physical Attendance
Physical attendance will be taken by the contractor at the shop floor in each shift, to be duly certified by the section in charge. An employee of the Time office will check the physical attendance of the contract supervisor through Saviour.
6. IDENTITY CARD
The contractor will ensure that the contract labour will prominently wear their identity card at all times during working hours, including the time of entry and exit from the security gate, failing which the contract labour will be denied entry into the plant and will be treated as absent from duties.
Regards,
Deepak Pandey
DGM-HR
From India, Gurgaon
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REVISED-A.P CONTRACT LABOUR WAGES- UPTO 31-03-2020.xls
A.P.CONTRACT LABOUR WAGES.pdf