1Dear 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 Administration Deptt. at a leading IT organisation, since the last 7 years, approx.
The issue is, all these years he, as also 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 given effect properly. Understand the revision in Minimum wages are effected only once in a year whereas there is twice a year revision of the same effected by the appropriate Govt.
This, I believe is a clear flouting of the provisions of the Minimum Wages, PF, C L(R&A) and ESI Acts.
They had approached the Contractor( their employer) on a few occasions but no one seemed to bother or do anything and their legitimate claim of regularizing the aforesaid 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 Contractor or the Principal Employer for the obvious fear of losing the job. Also they had not so far, approached with the issue at any tripartite forum, Labour Dept.
In the circumstances, request the HR Fraternity to advise on what could be a possible solution to the issue, without of course, any negative repercussion 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 & Regards,
Probhat Goswami
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 Administration Deptt. at a leading IT organisation, since the last 7 years, approx.
The issue is, all these years he, as also 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 given effect properly. Understand the revision in Minimum wages are effected only once in a year whereas there is twice a year revision of the same effected by the appropriate Govt.
This, I believe is a clear flouting of the provisions of the Minimum Wages, PF, C L(R&A) and ESI Acts.
They had approached the Contractor( their employer) on a few occasions but no one seemed to bother or do anything and their legitimate claim of regularizing the aforesaid 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 Contractor or the Principal Employer for the obvious fear of losing the job. Also they had not so far, approached with the issue at any tripartite forum, Labour Dept.
In the circumstances, request the HR Fraternity to advise on what could be a possible solution to the issue, without of course, any negative repercussion 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 & Regards,
Probhat Goswami
From India
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
From India
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, ie, 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, difference of wages for six months can be recovered from the contractor.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
Thank you Mr Madhu, for your clear inputs.
Understand from your message that raising an industrial dispute may well have negative repercussions on the group, and the Labour Deptt, EPF Enforcement and ESI Directorate to be approached separately.
The organisation is engaged in IT Consulting, Software Development business and these people are engaged in Admin. support function, which forms part of non-core activities from the perspective of the Principal Employer. So, the question of absorption is further more remote.
However, I understand, when these guys would 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 which they would start investigation and devise further enforcement actions. They may surely get their legitimate share of wage revisions and EPF, ESI contributions from employer but not without the threat of getting punished by the Contractor, who may throw them out of the job citing any trivial reason.. but the road of integrity and justice shall be paved for others, future employees who would definitely stand to get their due share of statutory benefits from the Contractor/ Principal Employer.
Warm Regards,
Probhat Goswami
From India
Understand from your message that raising an industrial dispute may well have negative repercussions on the group, and the Labour Deptt, EPF Enforcement and ESI Directorate to be approached separately.
The organisation is engaged in IT Consulting, Software Development business and these people are engaged in Admin. support function, which forms part of non-core activities from the perspective of the Principal Employer. So, the question of absorption is further more remote.
However, I understand, when these guys would 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 which they would start investigation and devise further enforcement actions. They may surely get their legitimate share of wage revisions and EPF, ESI contributions from employer but not without the threat of getting punished by the Contractor, who may throw them out of the job citing any trivial reason.. but the road of integrity and justice shall be paved for others, future employees who would definitely stand to get their due share of statutory benefits from the Contractor/ Principal Employer.
Warm Regards,
Probhat Goswami
From India
Dear
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 be definitely Trade Unions in that location who can pursue their cause. They can approach such union .
rajanassociates
https://www.citehr.com/285737-legal-...-industry.html
From India, Bangalore
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 be definitely Trade Unions in that location who can pursue their cause. They can approach such union .
rajanassociates
https://www.citehr.com/285737-legal-...-industry.html
From India, Bangalore
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