Dear all,
This is a posting on behalf of a friend of mine who is currently working in Kolkata under the payroll of a well-known manpower service provider and deployed to work in the Administration Dept. at a leading IT organization for the past 7 years, approximately.
The issue is that all these years, he, as well as others deployed like him through the contractor, are severely exploited, as their employer's share of PF (12%) and ESI (4.75%) are being deducted from their monthly salary in addition to the employee's share of 12% and 1.75%, respectively. Furthermore, minimum wage revisions are also not given effect judiciously, and revisions are made ad hoc at the sweet will of the principal employer and the contractor. Arrears are also not properly accounted for. I understand that the revision in minimum wages is effected only once a year, whereas there is a biannual revision of the same effected by the appropriate government.
This, I believe, is a clear violation of the provisions of the Minimum Wages, PF, CL(R&A), and ESI Acts.
They have approached the contractor (their employer) on a few occasions, but no one seemed to bother or take any action, and their legitimate claim of regularizing the aforementioned was always set aside.
This has been the scenario for all these years since he joined the job and could not strongly raise his/their voice against the contractor or the principal employer for the obvious fear of losing the job. Also, they have not, as of now, approached the issue at any tripartite forum or Labor Department.
In the circumstances, I request the HR fraternity to advise on what could be a possible solution to the issue, without, of course, any negative repercussions to the employment of these poor contractual employees, who are denied even their bare minimum wages.
The names of the principal employer and contractor are not disclosed owing to confidentiality.
Thank you and regards,
Probhat Goswami
From India
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1This is a posting on behalf of a friend of mine who is currently working in Kolkata under the payroll of a well-known manpower service provider and deployed to work in the Administration Dept. at a leading IT organization for the past 7 years, approximately.
The issue is that all these years, he, as well as others deployed like him through the contractor, are severely exploited, as their employer's share of PF (12%) and ESI (4.75%) are being deducted from their monthly salary in addition to the employee's share of 12% and 1.75%, respectively. Furthermore, minimum wage revisions are also not given effect judiciously, and revisions are made ad hoc at the sweet will of the principal employer and the contractor. Arrears are also not properly accounted for. I understand that the revision in minimum wages is effected only once a year, whereas there is a biannual revision of the same effected by the appropriate government.
This, I believe, is a clear violation of the provisions of the Minimum Wages, PF, CL(R&A), and ESI Acts.
They have approached the contractor (their employer) on a few occasions, but no one seemed to bother or take any action, and their legitimate claim of regularizing the aforementioned was always set aside.
This has been the scenario for all these years since he joined the job and could not strongly raise his/their voice against the contractor or the principal employer for the obvious fear of losing the job. Also, they have not, as of now, approached the issue at any tripartite forum or Labor Department.
In the circumstances, I request the HR fraternity to advise on what could be a possible solution to the issue, without, of course, any negative repercussions to the employment of these poor contractual employees, who are denied even their bare minimum wages.
The names of the principal employer and contractor are not disclosed owing to confidentiality.
Thank you and regards,
Probhat Goswami
From India
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So far 35 Views... and no replies.. Request the experts / HR fraternity to throw some light from experience / professional practice in this instant case. Warm regards, Probhat Goswami
From India
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From India
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If you raise it as an industrial dispute, certainly, the future will be dark. There are remedies available under the law. Nonpayment of minimum wages is illegal. Similar is the case with reduction of employer's share of contributions towards ESI and EPF. Since the authorities under these Acts are different, you have to take up the matter with the concerned authority, i.e., Labour Department for minimum wages, EPF Enforcement officer for PF, and Social Security Officer for ESI.
If you have doubt about the relationship between the principal employer and the contractor, the same can also be taken up with the Labour Department. If they have been engaged in the core area of operation, naturally, the Labour Department will intervene and issue necessary orders to abolish contract employment. However, by that, the employees may not get any remedy by way of automatic absorption. Certainly, the difference of wages for six months can be recovered from the contractor.
Regards, Madhu.T.K
From India, Kannur
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If you have doubt about the relationship between the principal employer and the contractor, the same can also be taken up with the Labour Department. If they have been engaged in the core area of operation, naturally, the Labour Department will intervene and issue necessary orders to abolish contract employment. However, by that, the employees may not get any remedy by way of automatic absorption. Certainly, the difference of wages for six months can be recovered from the contractor.
Regards, Madhu.T.K
From India, Kannur
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Thank you, Mr. Madhu, for your clear inputs.
I understand from your message that raising an industrial dispute may well have negative repercussions on the group, and the Labour Dept., EPF Enforcement, and ESI Directorate need to be approached separately.
The organization is engaged in IT Consulting and Software Development business, and these individuals are involved in Admin support functions, which are considered non-core activities from the perspective of the Principal Employer. Therefore, the question of absorption is even more remote.
However, I understand that when these individuals approach the Labour Dept., EPF, and ESI Authorities, they will have to explain the facts and provide documentary evidence to the concerned Inspector/ALC. Based on this, an investigation would be initiated, and further enforcement actions devised. They may indeed receive their legitimate share of wage revisions and EPF/ESI contributions from the employer, but not without the threat of being punished by the Contractor, who could terminate their employment citing any trivial reason. Nonetheless, the path of integrity and justice should be paved for others, including future employees who are entitled to their due share of statutory benefits from the Contractor/Principal Employer.
Warm Regards,
Probhat Goswami
From India
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I understand from your message that raising an industrial dispute may well have negative repercussions on the group, and the Labour Dept., EPF Enforcement, and ESI Directorate need to be approached separately.
The organization is engaged in IT Consulting and Software Development business, and these individuals are involved in Admin support functions, which are considered non-core activities from the perspective of the Principal Employer. Therefore, the question of absorption is even more remote.
However, I understand that when these individuals approach the Labour Dept., EPF, and ESI Authorities, they will have to explain the facts and provide documentary evidence to the concerned Inspector/ALC. Based on this, an investigation would be initiated, and further enforcement actions devised. They may indeed receive their legitimate share of wage revisions and EPF/ESI contributions from the employer, but not without the threat of being punished by the Contractor, who could terminate their employment citing any trivial reason. Nonetheless, the path of integrity and justice should be paved for others, including future employees who are entitled to their due share of statutory benefits from the Contractor/Principal Employer.
Warm Regards,
Probhat Goswami
From India
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Dear [User],
You have referred your friend as a contract employee. If he raises any issue, he will lose his job. You can ask him to join a Manpower Service Provider who complies with all regulations. So can the others. There will definitely be trade unions in that location who can pursue their cause. They can approach such a union.
Rajan Associates
https://www.citehr.com/285737-legal-...-industry.html
From India, Bangalore
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You have referred your friend as a contract employee. If he raises any issue, he will lose his job. You can ask him to join a Manpower Service Provider who complies with all regulations. So can the others. There will definitely be trade unions in that location who can pursue their cause. They can approach such a union.
Rajan Associates
https://www.citehr.com/285737-legal-...-industry.html
From India, Bangalore
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