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Christopher   29 December 2015

Canteen and contract

Dear Learned, As per Factories act Sec.46, we are maintaining a canteen through a contractor. He has engaged 2 contract workmen whose conduct, service and delivery was good. Even our employees' have appreciated the taste and quality of their food preparation. Now the contractor wants to move out of this catering business where else these 2 contract workmen are pleading us to have them in as they may not get a job that pays them regular in this village. While we were looking for a contractor to keep the canteen running , a localite approached us to run the canteen employing these 2 contract workmen . Pls advise to avoid any legal implications as in spirit, we are not violating. Thanks in advance!


 3 Replies

kameswarao S (Head HR)     31 December 2015

As the workmen are being engaged by the contractor & in case the other contractor wants to continue engage them he can and it is in noway connected to you.

Pl ensure that a proper settlement is done by the existing contractor before joining the other contractor.


Kumar Doab (FIN)     01 January 2016

Esnure that prorper settlement is done by outgoing contractor.

Since they are good and new contractor is also willing, the new contractor may employ them.

darshana sawant (associate consultant)     02 January 2016

Dear Mr. Christopher,


You need to ensure that the employees have tendered resignation of the earlier employer and the employer has settled all their legal dues like salary, gratuity, leave pay , bonus etc. Then they have to make an application to the new employer and that contractor has to issue them fresh appointment letter and mark their attendance on his muster cum attendance register.  Please also ensure that you have a proper contract agreement on stamp paper duly executed with an indemnity clause regarding the employees.



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