Is it allowed to keep maximum employees on contract basis or by ousource basis? When a company wants to keep very less on roll employees? What the Factory Act Says about it?
From India, Delhi
1From India, Delhi
Dear Vilom: There is no restriction on the number of contract labour that can be deployed in the factory premises as per the Factories Act 1948, but all of them would count to be 'worker' . The restriction on deployment of contract labour comes from Contract Labour (Regulation & Abolition ) Act which renders it illegal to deploy contract labour in prohibited trades. I hope you have no such prohibited trade. There are many organisations with contract workers as majority but whether it is a good practice or not is a moot point.
KK
From India, Bhopal
KK
From India, Bhopal
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Employee Law.pdf
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