Administrative charges
pranith reddy
(Querist) 07 November 2011
This query is : Resolved
Dear Experts,
This is regarding Limit for Administrative Charges for the Contractor( principle Employer). Our Organisation Employs daily Labours through Contract Basis. We pay them PF (13.61%), ESI (4.75%), Service Tax (10.3%), despite of the above mentioned we pay Supervisor Charge(1200Rs) and Administrative Charges(@--8.1%). My quirey is, Can the administrative charges and supervisor Charge be varied are else its fixed as per Govt Norms? I came to know it depends on the MoU made by Company and Contractor.
plz help me with valuable suggestions,
Thanking You,
Biswanath Roy
(Expert) 07 November 2011
The payment of wages to temporary workers and other benefits are to be dtermined as per present policy of the Government. MOU has no relation with it. Better you visit LABOUR COMMISSIONER of your State.
Kirti Kar Tripathi
(Expert) 10 November 2011
your organisation is indulging in illegal activities. To run an organisation through contract labour o9n permanent job itself is illegal. So what advised can be given to you ?
pranith reddy
(Querist) 10 November 2011
Dear Mr.Tripathi,
I couldn't get you "To run an organisation through contract labour o9n permanent job itself is illegal"? I'v no where mentioned any statement supporting the above. and moreover I want to know in what areas is it a illegal practise. Is that mandatory for the organisation to have all the employees to be employed directly or why cant we opt contractors? if we can opt for contractors what conditions should be fulfilled?
thanking you,
praneeth reddy
Kirti Kar Tripathi
(Expert) 11 November 2011
Dear Pranith
My advice is kindly see Contract Labour (abolition and regulation) Act, 1972 basic conception of enacting this is this act to remove contract employment from permanent nature of job, which is perennial and directly related to the production.
