Dear All,
I have a query on legal issues. We are into placing contractual employees working for specialty positions in various pharma organizations. The confusion is whether they come under the contract labor law. One opinion is they are not and are deputed to the client; the other group is saying they come under the contract law, hence you would need a contract license, etc., especially as our organization is in Haryana state.
I am talking to our lawyer on the same. I look forward to any expert who can help me understand these issues. Is there any site and some books on the same.
Thanking you all,
Nirupama Khare
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I have a query on legal issues. We are into placing contractual employees working for specialty positions in various pharma organizations. The confusion is whether they come under the contract labor law. One opinion is they are not and are deputed to the client; the other group is saying they come under the contract law, hence you would need a contract license, etc., especially as our organization is in Haryana state.
I am talking to our lawyer on the same. I look forward to any expert who can help me understand these issues. Is there any site and some books on the same.
Thanking you all,
Nirupama Khare
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Dear,
Please see the definition of "worker" in the CLRA Act. If their profile fits into that, and the qualifying numbers are met, then undoubtedly, you will have to obtain a license.
Always seek specialist advice that is localized.
V. Sounder Rajan
Off: 044-4262 0864, 044-6587 4684
From India, Bangalore
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204Please see the definition of "worker" in the CLRA Act. If their profile fits into that, and the qualifying numbers are met, then undoubtedly, you will have to obtain a license.
Always seek specialist advice that is localized.
V. Sounder Rajan
Off: 044-4262 0864, 044-6587 4684
From India, Bangalore
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Dear Rajan, I have the same kind of question. We are a flexi staffing organization in Chennai where we depute our software engineers to our clients' premises, and in turn, the clients depute them to their project sites. Does the CLRA Act apply to this kind of transaction? Additionally, do software engineers come under the CLRA Act?
Thanks & Regards,
Guru
From India, Madras
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Thanks & Regards,
Guru
From India, Madras
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Understanding Employee Classification Under CLRA
Dear Software Engineers, you need to determine whether they fall within the CLRA. The definition of an employee under CLRA is as follows:
The term "workman," as defined in clause (i) of Section 2 of the CLRA, is as follows: A workman means any person employed in or in connection with the work of any establishment to do any skilled, semi-skilled, or unskilled manual, supervisory, technical, or clerical work for hire or reward, whether the terms of employment are express or implied. However, it does not include:
- (A) a person employed mainly in a managerial or administrative capacity;
- (B) a person employed in a supervisory capacity drawing wages exceeding five hundred rupees per month or exercising functions mainly of a managerial nature; or
- (C) an out-worker, meaning a person to whom any articles and materials are given out by or on behalf of the principal employer to be processed for sale for the purposes of the trade or business of the principal employer, and the process is carried out either in the out-worker's home or in premises not under the control of the principal employer.
As per the same SAIL judgment, the definition is quite lucid. It consists of two limbs. The first limb defines a workman as any person employed in or in connection with the work of any establishment to do skilled, semi-skilled, or unskilled, supervisory, technical, or clerical work for hire or reward. The terms of employment, whether express or implied, are immaterial. The second limb includes three exclusionary classes: (A) managerial or administrative staff; (B) supervisory staff earning a salary exceeding Rs. 500 per month; and (C) an out-worker, which refers to a person to whom articles and materials are given out by or on behalf of the principal employer for processing for sale, and the process is carried out either in the out-worker's home or in another place not under the control of the principal employer.
Recently, the ID Act has increased the salary limit to Rs. 10,000, but CLRA has not been amended, and the same Rs. 5,000 limit continues.
Kindly review the above definition and decide for yourself.
Also, please see our posts at https://www.citehr.com/285737-legal-...#axzz15hCR7r00
Regards,
V. Sounder Rajan
Advocates & Notaries & Legal Consultants for the Flexi Staffing Industry
E-mail: [Email Removed For Privacy Reasons]
Office: [Phone Number Removed For Privacy Reasons], [Phone Number Removed For Privacy Reasons]
From India, Bangalore
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Dear Software Engineers, you need to determine whether they fall within the CLRA. The definition of an employee under CLRA is as follows:
The term "workman," as defined in clause (i) of Section 2 of the CLRA, is as follows: A workman means any person employed in or in connection with the work of any establishment to do any skilled, semi-skilled, or unskilled manual, supervisory, technical, or clerical work for hire or reward, whether the terms of employment are express or implied. However, it does not include:
- (A) a person employed mainly in a managerial or administrative capacity;
- (B) a person employed in a supervisory capacity drawing wages exceeding five hundred rupees per month or exercising functions mainly of a managerial nature; or
- (C) an out-worker, meaning a person to whom any articles and materials are given out by or on behalf of the principal employer to be processed for sale for the purposes of the trade or business of the principal employer, and the process is carried out either in the out-worker's home or in premises not under the control of the principal employer.
As per the same SAIL judgment, the definition is quite lucid. It consists of two limbs. The first limb defines a workman as any person employed in or in connection with the work of any establishment to do skilled, semi-skilled, or unskilled, supervisory, technical, or clerical work for hire or reward. The terms of employment, whether express or implied, are immaterial. The second limb includes three exclusionary classes: (A) managerial or administrative staff; (B) supervisory staff earning a salary exceeding Rs. 500 per month; and (C) an out-worker, which refers to a person to whom articles and materials are given out by or on behalf of the principal employer for processing for sale, and the process is carried out either in the out-worker's home or in another place not under the control of the principal employer.
Recently, the ID Act has increased the salary limit to Rs. 10,000, but CLRA has not been amended, and the same Rs. 5,000 limit continues.
Kindly review the above definition and decide for yourself.
Also, please see our posts at https://www.citehr.com/285737-legal-...#axzz15hCR7r00
Regards,
V. Sounder Rajan
Advocates & Notaries & Legal Consultants for the Flexi Staffing Industry
E-mail: [Email Removed For Privacy Reasons]
Office: [Phone Number Removed For Privacy Reasons], [Phone Number Removed For Privacy Reasons]
From India, Bangalore
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(Fact Checked)-[response] This reply contains accurate information regarding the definition of a workman under the CLRA and the SAIL judgment. The explanation provided is correct and relevant. (1 Acknowledge point)
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Hi Nirupama, I understand that you have a query regarding the legal issues surrounding placing contractual employees for specialty positions in various pharma organizations. It's a good step to consult with your lawyer to get accurate advice specific to your situation and the laws applicable in your region. They will be able to guide you based on the local labor laws and regulations in Haryana state.
In addition to consulting with your lawyer, here are some additional resources that may help you understand contract labor laws and related issues:
Official Government Websites
Visit the official websites of the labor department or government agencies responsible for labor regulations in your country or state. These websites often provide information, guidelines, and resources related to labor laws, including contract labor.
Legal Books and Publications
There are several books and publications available that provide insights into labor laws, including contract labor regulations. Some recommended titles include "Contract Labour Laws: A Handbook for Employers" by H.L. Kumar and "Contract Labour (Regulation and Abolition) Act, 1970" by Universal Law Publishing.
Industry Associations and Chambers of Commerce
Reach out to industry associations and local chambers of commerce related to the pharma sector. They often have resources, legal experts, or forums where you can seek guidance or network with professionals facing similar challenges.
Consult with HR or Legal Professionals
Engage with HR professionals or legal experts with experience in labor laws and contract labor regulations. They may be able to provide you with practical insights and best practices specific to your industry and region.
Remember that labor laws can be complex and subject to interpretation. It's crucial to rely on expert advice, such as your lawyer, who can provide accurate guidance based on the specific laws and regulations applicable to your situation.
I hope this helps, and I wish you the best in resolving your legal queries.
From India, Mumbai
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In addition to consulting with your lawyer, here are some additional resources that may help you understand contract labor laws and related issues:
Official Government Websites
Visit the official websites of the labor department or government agencies responsible for labor regulations in your country or state. These websites often provide information, guidelines, and resources related to labor laws, including contract labor.
Legal Books and Publications
There are several books and publications available that provide insights into labor laws, including contract labor regulations. Some recommended titles include "Contract Labour Laws: A Handbook for Employers" by H.L. Kumar and "Contract Labour (Regulation and Abolition) Act, 1970" by Universal Law Publishing.
Industry Associations and Chambers of Commerce
Reach out to industry associations and local chambers of commerce related to the pharma sector. They often have resources, legal experts, or forums where you can seek guidance or network with professionals facing similar challenges.
Consult with HR or Legal Professionals
Engage with HR professionals or legal experts with experience in labor laws and contract labor regulations. They may be able to provide you with practical insights and best practices specific to your industry and region.
Remember that labor laws can be complex and subject to interpretation. It's crucial to rely on expert advice, such as your lawyer, who can provide accurate guidance based on the specific laws and regulations applicable to your situation.
I hope this helps, and I wish you the best in resolving your legal queries.
From India, Mumbai
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(Fact Checked)-The user's reply provides accurate and valuable information regarding consulting with legal experts, utilizing official government websites, legal books, industry associations, and HR professionals to understand contract labor laws. (1 Acknowledge point)
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(Fact Checked)-The Contract Labour (Regulation and Abolition) Act, 1970 applies to both scenarios mentioned. Software engineers can be considered as workmen under the CLRA Act. Reference: Contract Labour (Regulation and Abolition) Act, 1970. (1 Acknowledge point)