Risk of regularizing Contract Labours
Guest
(Querist) 07 December 2010
This query is : Resolved
We are a MNC, having plant in West Bengal. We have employed nearly 300 Contract Labours in production, for flexibility, who are working with 500 permanent workmen side by side. We are regularly filing the Annual returns and maintaining all records and ensuring that our contractor's are regularly maintaining all records and submitting PF, ESI on time. But these Contract Labours are working for last 8-9 years continuously. Only at the time of recession they have been asked to stop working. We are issuing purchase order/ work order to the Contractors regularly and on the basis of that he is carrying the job. But we are not sending job completion report to labour dept. At the time of Contractor's licence renewal we are certfying him in form V. The wage and all other benefits are given by the contractor's, which is reimburshed by us.
Do we have any risk of regularization of these Contract labour?
What is the procedure to employ contract labour for a longer period with zero risk?
Kirti Kar Tripathi
(Expert) 07 December 2010
It seems you are taking work of permanent nature from contract labour. Your action is against the provisions of Contract Labour (Regulation & Abolition) Act. In case the work is of permanent nature and directly connected with the main functioning of industry, the contracted workmen are entitled to be regularised.
Guest
(Querist) 08 December 2010
Thank you your answer sir.
But as I think that the word “perennial” has been used under sec. 10(2)(b) where it is said that if the job exists for
sufficient duration will be considered as of “perennial” nature. But the act no where prohibits engagement of contract labour on any job unless it is prohibited by the Appropriate Govt. under the provisions of the Act. And in our state these types of jobs have not yet been prohibited by Govt.
Do we still have the risk? If in future govt prohibits engagement of Contract Labour in the job and afterward we discontinue engagement of Contract labour in these jobs, can they claim permanancy?
Kirti Kar Tripathi
(Expert) 08 December 2010
The appropriate government has issued the notification specifying the core jobs, contract labore can be engaged on those core jobs only. the word “perennial” as used in the Act connote to job, which are of permanent nature and last through out the years.
Guest
(Querist) 08 December 2010
Dear Mr. Tripathi,
Can you confirm me whether the said notification is valid in west bengal. Where from I can get the notification?
Kirti Kar Tripathi
(Expert) 08 December 2010
this notification is issued by the central government, thus it is applicable in WB also, at present i do not have any copy, i shall provide very soon. moreover, you may go for search in website of labour department of WB and/or central government, i think, the similar notification will also issued by your state government.
