i just want to know why the company hire contatual labour give me sufficient reply
From India, Gurgaon
From India, Gurgaon
Hello,
When the economy was not healthy, glonalization was imminent and the Indian labour Laws were rigid and denied the kind of flexibility in employment levels and when it was virtually unthinkable to bring in the kind of labour reforms to suit the needs of the industry facing global competition, the law "The Contract Labour (Regulation and Abolishin) Act 1972 came in.
This act to a large extent offered to the industry the flexibility they needed. If compliance under the act was in place the employer could reduce/increase labour strength to suit business exigencies. While technically the employer can engage "contract labour' for any and all operations, the government reserved for itself a right to abolish the system of engaging "contract labour" under the act for following the process provided in the substantive act under Sec. 10. The criterion under this provision includes issues like, if in other similar industry such work is ordinarily through contract labour or by own labour. There are some more arbitrary criterion lso included. But the government can abolish engagement of contract laboor in any establishment/trade/area after conducting an enquiry contemplated under the act and after giving the amployer an opportunity of being heard!
The main difference between the two systems is while the employer has to pay "negotiated wages to workment on his rolls, he is required to pay only the statutory Minimum Wages under the Minimum Wages Act-applicable schedule. The other main difference is the employer is free to reduce/increase the strength of contract labour vritually at will! Just consider the cost saving and the all too valuable flexibility!!
I trust your need is satisfactorily answered!
Regards
samvedan
December 12, 2010
----------------
From India, Pune
315When the economy was not healthy, glonalization was imminent and the Indian labour Laws were rigid and denied the kind of flexibility in employment levels and when it was virtually unthinkable to bring in the kind of labour reforms to suit the needs of the industry facing global competition, the law "The Contract Labour (Regulation and Abolishin) Act 1972 came in.
This act to a large extent offered to the industry the flexibility they needed. If compliance under the act was in place the employer could reduce/increase labour strength to suit business exigencies. While technically the employer can engage "contract labour' for any and all operations, the government reserved for itself a right to abolish the system of engaging "contract labour" under the act for following the process provided in the substantive act under Sec. 10. The criterion under this provision includes issues like, if in other similar industry such work is ordinarily through contract labour or by own labour. There are some more arbitrary criterion lso included. But the government can abolish engagement of contract laboor in any establishment/trade/area after conducting an enquiry contemplated under the act and after giving the amployer an opportunity of being heard!
The main difference between the two systems is while the employer has to pay "negotiated wages to workment on his rolls, he is required to pay only the statutory Minimum Wages under the Minimum Wages Act-applicable schedule. The other main difference is the employer is free to reduce/increase the strength of contract labour vritually at will! Just consider the cost saving and the all too valuable flexibility!!
I trust your need is satisfactorily answered!
Regards
samvedan
December 12, 2010
----------------
From India, Pune
Dear Mr.Samvedan,
I don,t agree with your view.
1. Employee can negotiate for his/her wage.
2.Employer is not free to increase or decrease at its virtue, it may be true in case of casual labour.
I may be wrong,if so kindly clarify me.
Regard's
Shaikh
From India, Bhubaneswar
I don,t agree with your view.
1. Employee can negotiate for his/her wage.
2.Employer is not free to increase or decrease at its virtue, it may be true in case of casual labour.
I may be wrong,if so kindly clarify me.
Regard's
Shaikh
From India, Bhubaneswar
Dear Samvedan, Well explained. Good. People like (Abedeen7/Shaikh may not know the topic or have not read your explanation completely. So they make such uncalled for comments. Keep it up.
From India, Jamnagar
From India, Jamnagar
Dear Shaikh,
It’s good to keep an eagerness to learn. As shared by Samvedan, that’s exactly how 'Contractual labour' works. He is a very senior person and is well respected by the industry for the contributions made by him. He has been a mentor to many like me. Hence I request you to learn from him, it’s your chance to clear your doubts.
For eager learners like us, he is a Guru and guides on every area that we request him.
Regards,
(Cite Contribution)
From India, Mumbai
It’s good to keep an eagerness to learn. As shared by Samvedan, that’s exactly how 'Contractual labour' works. He is a very senior person and is well respected by the industry for the contributions made by him. He has been a mentor to many like me. Hence I request you to learn from him, it’s your chance to clear your doubts.
For eager learners like us, he is a Guru and guides on every area that we request him.
Regards,
(Cite Contribution)
From India, Mumbai
Dear Samvedan,
Minimum Wages do not deal with class of employment -( regular, permanent, temporary, casual, contract or badli). It states that in Industries and Locations under it's schedule, an employer cannot pay less than Minimum Wages.
I have personally worked in Factory where there was Contractor Union, the contract workers were paid as per Tripartite Agreement, which were much higher than the Minimum Wages.
If you look at it from a different angle, the Contract Workers are permanent workers of the Contractor.
Dear Kavita,
Employing contract employees (both Blue and White collar) in place of permanent labour usually in the following cases:
1. Job/ Work of Temporary Nature
2. Jobs of non core areas: Like Canteen, Sweepers, garderners, Loading, unloading
3. Jobs which require special expertise and it is not profitable investment both in terms of Financials and Manpower Development: Security, IT Support, Cash Delivery, Logistic Support, Maintenance, Transportation.
4. Jobs which require Unskilled Manpower and the scope of growth from these positions are leaset likely possible: Unskilled workers like Helpers, Office boy, Peons.
5. Manpower Restructering and Modifications: Transition Period, Closure.
Regards,
SC
From India, Thane
Minimum Wages do not deal with class of employment -( regular, permanent, temporary, casual, contract or badli). It states that in Industries and Locations under it's schedule, an employer cannot pay less than Minimum Wages.
I have personally worked in Factory where there was Contractor Union, the contract workers were paid as per Tripartite Agreement, which were much higher than the Minimum Wages.
If you look at it from a different angle, the Contract Workers are permanent workers of the Contractor.
Dear Kavita,
Employing contract employees (both Blue and White collar) in place of permanent labour usually in the following cases:
1. Job/ Work of Temporary Nature
2. Jobs of non core areas: Like Canteen, Sweepers, garderners, Loading, unloading
3. Jobs which require special expertise and it is not profitable investment both in terms of Financials and Manpower Development: Security, IT Support, Cash Delivery, Logistic Support, Maintenance, Transportation.
4. Jobs which require Unskilled Manpower and the scope of growth from these positions are leaset likely possible: Unskilled workers like Helpers, Office boy, Peons.
5. Manpower Restructering and Modifications: Transition Period, Closure.
Regards,
SC
From India, Thane
Hi,
Experts/Consultants are working on contractual basis with many reputed multi nationals and their payment is twice or thrice more than the permanent employee of the same cadre.This is not a fluke,Personally I know many manufacturing and operating companies(Oil&Gas) following this based on the nature of their project/work.More over, no one can expect these highly qualified and experienced brains for minimum wages.
From United States, Milpitas
Experts/Consultants are working on contractual basis with many reputed multi nationals and their payment is twice or thrice more than the permanent employee of the same cadre.This is not a fluke,Personally I know many manufacturing and operating companies(Oil&Gas) following this based on the nature of their project/work.More over, no one can expect these highly qualified and experienced brains for minimum wages.
From United States, Milpitas
Hello,
This is a response to the post by swastik73.
No issue of disagreement between us.
1) Categorisation of employees (Permanent, Remporary etc. is a provision of Industrial Employment (Standing Orders) Act 1946.
2) Skiil differentials (USK/SSK/SK/HSK) are a part of Minimum Wages Act. For various employment schedules this act provides Minimum Wages that MUST be paid by an employer. This wage comprises, "Minimum Rate of Wage+ Special Allowance (which is revised every six months)+HRA"
Some people do NOT include HRA but that is a practice people choose. I advise that it should be included but that is NOT at debate presently. This is what is referred to, as you must know, "Statutory Minimum Wafe".
3) My case is that no employer has a choice of paying LESS than the SMW.
4) Negotiated Wage is a term referring to a situation where wages are revised through "collective bargaining" process with employee organization/s.
5) The law always prescribes the MINIMUM. Therefore it is always possible and open to an employer to sanction wages for the employees engaged by the Contractor providing labour, that are HIGHER than SMW, whether by way of a tripartite agreement or directly.
6) The tripartite agreement suggests that the workmen engaged through a Contractor have formed themselves into a Trade Union and when such a Trade Union prefers a Charter of Demands on their employer (the Contractor-because they have no direct employer-employee relationship with the company that engages the Contractor) and the Contractor is UNABLE additional labour costs within the comission, by whatever name called, the company engaging the contract labour through this contractor supports a Wage Settlement between the Contractor and said Union (for its reasons like undisturbed operations or any other such a reason. As and by way of security to the Union and the Contractor's employees, it signs such settlement normally as "consenting party".
I trust I am not confusing the matter further!
Regards
samvedan
December 13, 2010
-------------------
From India, Pune
This is a response to the post by swastik73.
No issue of disagreement between us.
1) Categorisation of employees (Permanent, Remporary etc. is a provision of Industrial Employment (Standing Orders) Act 1946.
2) Skiil differentials (USK/SSK/SK/HSK) are a part of Minimum Wages Act. For various employment schedules this act provides Minimum Wages that MUST be paid by an employer. This wage comprises, "Minimum Rate of Wage+ Special Allowance (which is revised every six months)+HRA"
Some people do NOT include HRA but that is a practice people choose. I advise that it should be included but that is NOT at debate presently. This is what is referred to, as you must know, "Statutory Minimum Wafe".
3) My case is that no employer has a choice of paying LESS than the SMW.
4) Negotiated Wage is a term referring to a situation where wages are revised through "collective bargaining" process with employee organization/s.
5) The law always prescribes the MINIMUM. Therefore it is always possible and open to an employer to sanction wages for the employees engaged by the Contractor providing labour, that are HIGHER than SMW, whether by way of a tripartite agreement or directly.
6) The tripartite agreement suggests that the workmen engaged through a Contractor have formed themselves into a Trade Union and when such a Trade Union prefers a Charter of Demands on their employer (the Contractor-because they have no direct employer-employee relationship with the company that engages the Contractor) and the Contractor is UNABLE additional labour costs within the comission, by whatever name called, the company engaging the contract labour through this contractor supports a Wage Settlement between the Contractor and said Union (for its reasons like undisturbed operations or any other such a reason. As and by way of security to the Union and the Contractor's employees, it signs such settlement normally as "consenting party".
I trust I am not confusing the matter further!
Regards
samvedan
December 13, 2010
-------------------
From India, Pune
Hi five to Samvedan!! Amazing explanation of contractual labor, which all of us know; ironically even those working in the industries employing Contract Labor dont know!! Cheers!! Rahul Chhabra
From India, Delhi
From India, Delhi
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