Contractual labour
feathers
(Querist) 17 August 2016
This query is : Resolved
Need advice on the below mentioned situation:
The organizations engages around 200 daily wage staff for a period of 1-2 months.
The staff are being outsourced from Manpower agency, but the agency has failed to meet the expectation of the organization and contractual labour.
Now, the organization decides to hire contractual staff by itself and decide to pay them fixed sum.
Now, my question is: Does the contractual staff can be deployed as apprentice or trainee; will they would be covered by labour acts like ESI EPF act etc.
Does hiring daily wagers as apprentice for this short period, may exempt the organization from the purview of EPF, ESI and other labour acts?
Guest
(Expert) 17 August 2016
Your query seems to be of academic nature. Very strange questions about deployment of daily wagers.
Anyway, in what capacity you are employed in your organization?
Also, is your organisation allowed by the Government to keep apprentices under the Apprentices Act and for which posts for which you want to deploy outsiders?
Also, are you making rregular appointment by directly outsourcing the contractual workers?
Kumar Doab
(Expert) 17 August 2016
What is your ultimate objective; ESI,EPF,Labor Laws!
Rajendra K Goyal
(Expert) 18 August 2016
Commercial query, discuss with local labor law consultant.
feathers
(Querist) 22 August 2016
Thanks for your replies.
I am working in HR department of a PSU.
We used to deploy contractual labour for around 1-1.5 months in a year.
Earlier we used to hire directly and paid lump sum amount. However, for the past few years, in order to comply with ESI, EPF acts, we have outsourced contractual labour from manpower agency. But, the experience has so far has not been good.
Problems like non compliance of EPF, ESI act, delayed wages, and less wages have time and again cropped up. The agency is reluctant to mend ways. Also, due to crunch of staff, work relating to maintenance of ESI,EPF of contractual staff would add additional burden to the organization.
It is also mentioned that daily wage staff hired on such short duration are not able to get maximum benefit from EPF etc. As most of them are students looking for quick money during vacations.
Can we deploy apprentice or volunteers on honorarium basis and get away with ESI, EPF? Can you suggest me anyway out of this problem?
Please advice.
Sudhir Kumar, Advocate
(Expert) 27 August 2016
"Can we deploy apprentice or volunteers on honorarium basis and get away with ESI, EPF?"
This forum basically does not encourage or advise frauds.
They were you remployees. You were bound to pay ESI and PF and from that point onwards they were your employees and now they cannot be apprentices.
Even if daily wager, even if employed for short period you are liable to pay ESI and PF.
Even if you employed them through contractors still you are liable to pay ESI and PF if the contractor has defaulted and you are unable to make him pay.
Guest
(Expert) 28 August 2016
Mr. feathers, whosoever you are in pseudonymous name,
Your reply to my question is not satisfactory. I asked you about your CAPACITY in which you were working in your organisation. Working in HR does not mean that you are working in a controllable position. There are operational, executive as well as decision makers positopns in every organisation's HR department.
You have also not replied, whether your organisation has been allowed by the Government to deploy apprentices.
You have also not replied which are the posts on which you desire to pot apprentices instead of regular employees.
So, when you don't know what is what of yourself as well as your organisation, your query is purely academic from all angles.
Even if there is even a slight truth in your story, your problem is of commercial nature. Your PSU can very well afford to hire services of some service law expert to solve your HR related problems, if you are so incompetent in labour laws even being in HR department.
So, sorry, no reply to your query is justified on charity basis.
Sudhir Kumar, Advocate
(Expert) 28 August 2016
Further if you are planning to commit this fraud on behalf of a PSU then remember that PC Act applies to PSU employees and you are also amenable to CVC jurisdiction if planning any miscarriage of law even for the financial benefit of PSU.
The Sr officers of such organizations do not even come for visit to Jail to meet people like you when trapped in PC Act, S/406/409 or under EPF Act.
But they do issue deemed suspension on completion of 48 hours custody and promptly send staff to serve dismissal order (without chargesheet or inquiry) in Jail after conviction.
Kumar Doab
(Expert) 28 August 2016
Generically speaking; as it seems from various publications in various threads at various forums:
HR personnel seem to be eager to dabble in legal matters.
Employers need personnel who are more than willing to offer their shoulder to fire, their face to hide behind,chest to take bullets ( used the word to explain)......
Good old training for HR was; a person that shall always be unbiased, and with balanced approach.......
A sensible HR person even today, will advise wisely and briefly.............and ask not to commit transgression and shall not be a party to transgression....
Kumar Doab
(Expert) 28 August 2016
Author @ Feathers,
Enough has been posted for you.
Before you sign a declaration or push a paper or sign a paper................consult/engage/retain...........a very able counsel specializing in Labor/service matters, and let your own counsel, advise you properly.
feathers
(Querist) 29 August 2016
I am working at lower management level and a new entrant.
Also, I never intend to bypass any labour law or commit any fraud and was only enquiring if there is another way duly permitted by law.
As a layman who has little knowledge of legal things, i have always turn towards lawyersclubindia for getting correct and sound legal advice. And this is itself a sufficient proof that I am with right side of law, Mr. Kumar.
Sorry, but you have misunderstood me.
Anyways, thanks for your replies.
Kumar Doab
(Expert) 29 August 2016
You have grossly mis-understood.
I have tried to post sound and illustrated impressions on Labor/Service matters.
You may read again, and slowly.
You shall understand the true meaning.
Kumar Doab
(Expert) 29 August 2016
Nevertheless, as posted by you, we are glad to note that you want to be amongst HR personnel that would be unbiased and upfront and inclined to be on right side of law.
There are some such HR personnel that visit LCI e.g;
Mr. Avinash Kumar Sharma, and their post are always clear.
There are members from HR fraternity that render clear, truthful, upfront, advise to the querists in Forum section, e.g;
Mr. Kameswara Rao......
Kumar Doab
(Expert) 29 August 2016
You have erased your last post.
However you have been properly advised.
feathers
(Querist) 29 August 2016
Thanks a lot, Sir.
I requested my office to provide me training on contractual labour, but due to office politics it never happened.
Being new in the field, i just want to sure that by following my seniors I am not going against law. That's why I posted on LCI.
Thank you.
Kumar Doab
(Expert) 29 August 2016
For HR matters; Surf on sites that are HR specific.
For Legal matters: Pass the matter within organisation to legal cell and don't offer your face,shoulder, chest as posted above.
HR personnel err mostly when they adventure or are pushed into into legal matters.
Sudhir Kumar, Advocate
(Expert) 29 August 2016
" just want to sure that by following my seniors I am not going against law."
But you came here to be advise how to commit fraud on poor workers.
Guest
(Expert) 29 August 2016
When you are working at lower management level and a new entrant and not being at the decision making stage, why you are not getting proper guidance from your superiors?
Moreover, why you are interested to adopt a fraudulent line of recruitment?
HR should be fully equipped with the labour and service laws and the lower level managerial executives have to be trained appropriately.
Your query being of commercial nature, your management can well afford to hire services of some services laws expert, if HR is unable to tackle the HR related problems.
Kumar Doab
(Expert) 29 August 2016
The PRO,APFC in the nearest PF office are very helpful and even conduct sessions for the industry.
Still be polite to seniors to refer the matter to a very able Labor/Service matters expert.
