Hello Kavita,
As per my knowledge the permanent labor is bonded by both Workmen Compensation Act and Industrial Dispute Act whereas the Act applicable on contract labor is only the Contract Labor (Regulation and Abolition) Act, 1970. I think this is the main reason to hire contract labor in the organization.
Bhuwan Singh Bisht
Kashipur - Uttarakhand
From India, Kashipur
15As per my knowledge the permanent labor is bonded by both Workmen Compensation Act and Industrial Dispute Act whereas the Act applicable on contract labor is only the Contract Labor (Regulation and Abolition) Act, 1970. I think this is the main reason to hire contract labor in the organization.
Bhuwan Singh Bisht
Kashipur - Uttarakhand
From India, Kashipur
Because they want to save the cost by not giving all the faciltities as given to permnent employees & also if incase the company is under loss, they can dismiss the contract employees, compny will not have more burden etc
From India, Bangalore
From India, Bangalore
Dear trueskill,
Request you to refer to The Contract Labor Act (1970) for further clarification, the government has made all the provisions for the benefit of the Contract Labor.
Employment of Contract Labor is dependent on the type of Industry too. For Ex: An infrastructure company, contractual labors are employed for a particular project in a particular demography. There would be no use in keeping the labors after the project is over.
Regards,
Rahul Chhabra
From India, Delhi
Request you to refer to The Contract Labor Act (1970) for further clarification, the government has made all the provisions for the benefit of the Contract Labor.
Employment of Contract Labor is dependent on the type of Industry too. For Ex: An infrastructure company, contractual labors are employed for a particular project in a particular demography. There would be no use in keeping the labors after the project is over.
Regards,
Rahul Chhabra
From India, Delhi
In my point of view regular employees required welfare scheme but contract employees not required so the company has balancing economy pls suggest my opinion now only i’m studying mba
Dear Sundaramoorthi, Please go thru the Act!! It will give u more clarity on the topic!! Regards, Rahul Chhabra
From India, Delhi
From India, Delhi
Thanks for your suggestion mr.rahul
surely it ll help to me
labour act is must for hr ?
And
dear Darshini Inamdar
human resource department is the employees are qualified for tat job (hr people)
personnel department
the management decided the post (may be disqualified employee also posted) depend on experience and activities
i'm refering only hr people
in my point of view . . .
Revert me if my suggestion is wrong . .
surely it ll help to me
labour act is must for hr ?
And
dear Darshini Inamdar
human resource department is the employees are qualified for tat job (hr people)
personnel department
the management decided the post (may be disqualified employee also posted) depend on experience and activities
i'm refering only hr people
in my point of view . . .
Revert me if my suggestion is wrong . .
- Reason is Economics and pure Business Sense. Cost of Contract Employees is less as compared to Regular Employees.
- Contract Labour also offers flexibility and maneuverability in business operations.
- At a times contract labour is easy to Manage as compared to Regular Employees.
From India, Pune
Dear All
With reference to the post on Contract Labour Deployment .The portion of Maharashtra Govt Draft Labour Policy 2010 on Contract Labour is very impressive which reads like this:
Contract Labour
The issue of contract labour is one on which employers and unions are strongly divided. Employers see contract labour as an essential component of labour market flexibility that will contribute to economic efficiency and competitiveness. Trade unions see contract labour as a form of exploitation and a means to deny workers permanent jobs.
Contract labour must be distinguished from outsourcing of tasks to particular entities for cleaning and security services, computer technology expertise, and consultancy services. These are commercial contracts for service as between the user and service-provider and fall outside the scope of labour legislation. The provider-entity, however, is an employer and thus is required to comply with all appropriate labour laws.
Out-sourcing and commercial contracts are not the real issue. The real issue is the employment of labour, under contract, for specific durations or specific tasks as a means of cost-cutting, or to provide flexibility, or as a substitute for jobs that would normally be regular and permanent.
The Department of Labour proposes to facilitate discussions with the social partners on the issue of contract labour with a view to deciding on a model that provides both fairness and flexibility. This may involve some discussion on possible amendments of existing laws as, for example, preventing employers from using lower-cost contract labour as a substitute for permanent workers, and by paying a loading to contract workers to compensate for their loss of benefits including leave and access to social security. It might also consider whether the current system of contracting agents as the employers of contract workers, as distinct from the direct employment of such workers by the principal employer, is in the best interests of works and employers.
The productivity of contract workers is also an issue for tripartite discussions.The Department of Labour, through discussions with social partners as mentioned above, would like to evolve models and/or structures through which a win-win situation can be developed, both for the employers and the workers in a globalized scenario. The win-win situation could be developed if the employer is given flexibility to engage labour and the labour is ensured protection of rights. One such proposal could also be to engage contract labour with a loading factor as a premium for flexibility.
It is also suggested that in order to develop a long term solution on contract labour and develop models to meet the twin concerns of flexibility to industry and fairness to labour, it may be necessary to go through a transition phase in which, the first step could be to study the present labour laws and their actual implementation to identify on what is incentivising contract labour and disguised employment? It would also be necessary to define fairness in terms of “equal treatment”. What is “equal treatment” would also have to be agreed upon more specifically between all social partners in a clear-cut manner.
Further, there would be need to work out solutions along with changes in law if required, which would further the objective to reach towards the end goal of increased productivity in a situation of ‘flexibility’ and ‘fairness’ as defined by ‘equal treatment’.
The Policy itself may answer many of the viewers questions on the need for deploying Contract Labour . But to see that the above Policy is translated into State of Central Govt amendments to CLRA viewers of CITEHR need to respond to this policy note as we can condense them and make it part of a representation which we can submit to the Secretary Labour Department of the Maharashtr Govt.
With Regards
Advocates & Notaries & Legal Consultants
E-mail : rajanassociates@eth,net,
-9025792684-9025792634
more at https://www.citehr.com/285737-legal-...#ixzz190eowRll
From India, Bangalore
With reference to the post on Contract Labour Deployment .The portion of Maharashtra Govt Draft Labour Policy 2010 on Contract Labour is very impressive which reads like this:
Contract Labour
The issue of contract labour is one on which employers and unions are strongly divided. Employers see contract labour as an essential component of labour market flexibility that will contribute to economic efficiency and competitiveness. Trade unions see contract labour as a form of exploitation and a means to deny workers permanent jobs.
Contract labour must be distinguished from outsourcing of tasks to particular entities for cleaning and security services, computer technology expertise, and consultancy services. These are commercial contracts for service as between the user and service-provider and fall outside the scope of labour legislation. The provider-entity, however, is an employer and thus is required to comply with all appropriate labour laws.
Out-sourcing and commercial contracts are not the real issue. The real issue is the employment of labour, under contract, for specific durations or specific tasks as a means of cost-cutting, or to provide flexibility, or as a substitute for jobs that would normally be regular and permanent.
The Department of Labour proposes to facilitate discussions with the social partners on the issue of contract labour with a view to deciding on a model that provides both fairness and flexibility. This may involve some discussion on possible amendments of existing laws as, for example, preventing employers from using lower-cost contract labour as a substitute for permanent workers, and by paying a loading to contract workers to compensate for their loss of benefits including leave and access to social security. It might also consider whether the current system of contracting agents as the employers of contract workers, as distinct from the direct employment of such workers by the principal employer, is in the best interests of works and employers.
The productivity of contract workers is also an issue for tripartite discussions.The Department of Labour, through discussions with social partners as mentioned above, would like to evolve models and/or structures through which a win-win situation can be developed, both for the employers and the workers in a globalized scenario. The win-win situation could be developed if the employer is given flexibility to engage labour and the labour is ensured protection of rights. One such proposal could also be to engage contract labour with a loading factor as a premium for flexibility.
It is also suggested that in order to develop a long term solution on contract labour and develop models to meet the twin concerns of flexibility to industry and fairness to labour, it may be necessary to go through a transition phase in which, the first step could be to study the present labour laws and their actual implementation to identify on what is incentivising contract labour and disguised employment? It would also be necessary to define fairness in terms of “equal treatment”. What is “equal treatment” would also have to be agreed upon more specifically between all social partners in a clear-cut manner.
Further, there would be need to work out solutions along with changes in law if required, which would further the objective to reach towards the end goal of increased productivity in a situation of ‘flexibility’ and ‘fairness’ as defined by ‘equal treatment’.
The Policy itself may answer many of the viewers questions on the need for deploying Contract Labour . But to see that the above Policy is translated into State of Central Govt amendments to CLRA viewers of CITEHR need to respond to this policy note as we can condense them and make it part of a representation which we can submit to the Secretary Labour Department of the Maharashtr Govt.
With Regards
Advocates & Notaries & Legal Consultants
E-mail : rajanassociates@eth,net,
-9025792684-9025792634
more at https://www.citehr.com/285737-legal-...#ixzz190eowRll
From India, Bangalore
- I would just like to highlight two points from the post of M/s V S Rajan & Associates.
- The real issue is the employment of labour, under contract, for specific durations or specific tasks as a means of cost-cutting, or to provide flexibility, or as a substitute for jobs that would normally be regular and permanent.
- Preventing employers from using lower-cost contract labour as a substitute for permanent workers, thereby denying them permanant employment.
From India, Pune
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