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Sounder Rajan V (Advocate)     27 November 2010

Staffing and recruiting industry -legal updates

Dear All


We are specially creating this Post for the Staffing & Recruiting Industry which has seen tremendous growth in the past 5 years. To keep pace Professionals need to keep themselves updated on the Legal compliance .

Many International players have come into the Indian Scene and are vying hard to corner a market share.The Industries Business now runs into Million of Rupees. But India consisting of Different States and Labour being on the Concurrent List the Legislation can be done both by the Centre and the States.That is why in India we find so many Labour Legislations.

In fact China has pioneered in enacting a "Contracting Law" which regulates the Industry.

The supporters of Globalization want to do away with a so many Legislation but they have not understood the Federal Nature of Our Constitution and the answer for that should not be " a cry without any result". Till that goal of Standardisation of Labour Laws is reached the Industry to operate and function within the four corners of the existing Laws.This post is an begining in that direction.


With Regards


VS Rajan Associates,
Advocates & Notaries & Legal Consultants
No.27, Ist Floor, Singapore Plaza,
No.164, Linghi Chetty Street,
Chennai - 600 001.
E-mail : rajanassociates@eth,net,
Off : 044-42620864, 044-65874684,
Mobile : 9840142164-9025792684-9025792634




Learning

 107 Replies

Sounder Rajan V (Advocate)     27 November 2010

STATUTORY COMPLIANCE MOST RELEVANT TO TEMPING &STAFFING INDUSTRY

Labour Welfare Fund ACT Statement of Contribution along with cheque to be submitted to the Authority Concerned.

The Profession Tax ACT Monthly Returns along with cheque.

The Contract Labour (R&A) ACT, 1970 Half Yearly Return - by Contractor to be submitted to Asst. Labour Commissioner

The Maternity Benefit ACT, 1961 Annual Return

The (National & Festival Holidays) ACT, 1963 Annual Return.

The Minimum Wages ACT, 1948 Annual Return

The Contract Labour (R&A) ACT, 1970 Annual Return by Principal Employer & Renewal by Contractor .

The Payment of Wages ACT, 1936 Annual Return

The Employees Provident Fund ACT, 1952 3A & 6A Annual Individual Returns & Returns of Contributions to the Regional Provident Fund Commissioner.

The Employees State Insurance ACT, 1948 Summary of Contribution

The Contract Labour (R&A) ACT, 1970 Renewal of Licence .

The Payment of Bonus ACT, 1965 Annual Return

Shops & Establishment Act Renewal & Registration Certificate.

Factories Act [In case the Contractor's Employees are deputed to a Factory]





With Regards


VS Rajan Associates,
Advocates & Notaries & Legal Consultants for Staffing & Recruiting Industry
No.27, Ist Floor, Singapore Plaza,
No.164, Linghi Chetty Street,
Chennai - 600 001.
E-mail : rajanassociates@eth,net,
Off : 044-42620864, 044-65874684,
Mobile : 9840142164-9025792684-9025792634

Sounder Rajan V (Advocate)     30 November 2010

Subject - Legal Tip for the Recruitment Industry

Dear All

In the recruitment Industry the problem of chasing payments from the Clients is a perennial issue. The reward for the effort which is the essence of the Recruitment Industry is taken away and these unpaid Invoices become Bad debts .

This is on account of the absence of protective clauses in the Recruiting Agreement.

The solution for this is to include an Arbitration clause .This will help the Industry to have some hold on the Client in recovering the dues.

The advantage by including this clause is will result in protective step being initiated in the Court when there is default without incurring heavy costs of Court Fee by invoking the Arbitration Courts help by requesting the Court to issue a direction to the Client pending the Arbitration proceedings. This will ultimately protect the recovery process of outstanding Invoices. The Industry should make a beginning if the clause is already not there in their Template.
 
Please see the Indian Arbitration & Concilliation Act 1996 for more details.

With Regards


VS Rajan Associates,
Advocates & Notaries & Legal Consultants for Recruiting & Staffing Industry
No.27, Ist Floor, Singapore Plaza,
No.164, Linghi Chetty Street,
Chennai - 600 001.
E-mail : rajanassociates@eth,net,
Off : 044-42620864, 044-65874684,
Mobile : 9840142164-9025792684-9025792634

Sounder Rajan V (Advocate)     02 December 2010

Dear All

Sub:Typical Arbitration Clause


Following the earlier post Arbitration by itself means referring the dispute between the Client and the Agency to an Arbitral Panel instead of rushing to the Court.This saves time and money.The typical clause can be like this:

"In the event of any dispute, difference or question arising out of or in respect of this agreement or the commission of any breach of any terms thereof or of compensation payable thereof or claim made by either of the parties against the other in any manner whatsoever in connection with it, the same shall be referred to a Sole Arbitrator to be selected and appointed by mutual agreement for arbitration as provided in the Arbitration and Conciliation Act 1996 and Rules framed therein.. The decision or award so given by the Single Arbitrator shall be final and binding on the parties hereto.Initially the costs of the arbitration shall be borne equally by both parties and the award shall tax the costs of the Arbitration the party against whom the Award is passed."

Suitable modification can be made depending upon the need is to be done .The advantage of having a sole arbitrator is to reduce costs.Please see the Arbitration and Conciliation Act 1996 for more details on the process.

With Regards


VS Rajan Associates,
Advocates & Notaries & Legal Consultants for Recruiting & Staffing Industry
No.27, Ist Floor, Singapore Plaza,
No.164, Linghi Chetty Street,
Chennai - 600 001.
E-mail : rajanassociates@eth,net,
Off : 044-42620864, 044-65874684,
Mobile : 9840142164-9025792684-9025792634


Sounder Rajan V (Advocate)     05 December 2010

Dear All

 Many a times Staffing Industry Consultants and HR Managers are  confronted with the following question.

Can we fire a Temporary Employee  sent to the Client for working  without giving notice period due to misbehavior or  if he is found drunk during working ours do we still have to pay the notice period?


Section 13 of the Delhi Shops Act lists the Acts and omission constituting misconduct

for the purpose of Section 30,misconduct shall include the following acts and omission on the part of an employee:
(a) willful insubordination or disobedience, whether or no not in combination with another, of any lawful and reasonable order of superior;
(b) going on an illegal strike or inciting, abetting or instigation or acting in furtherance thereof;
(c) willful slowing down in performance of work, or abetment, or instigation thereof;
(d) theft, fraud, misappropriation or dishonesty in connection with the employer's business or property;
(e) habitual absence without leave, overstaying the sanctioned leave without sufficient grounds, or proper and satisfactory explanation, or habitual late attendance;
(f) commission of any act subversive of discipline or good behaviour on the premises of establishment, such as. drunkenness, riotous, disorderly or indecent behaviour, gambling or holding meeting without previous permission of the employer or taking or giving bribes or any illegal gratification whatsoever;
(g) habitual neglect of work or gross or habitual negligence;
(h) willful damage to work in process or to any property if the establishment;
(i) disclosing to any unauthorised person any information in regard to the processes of the establishment which may come into the possession of the employee in the course if his work.

Therefore drunkenness will come within (f) above.

Section 30: Notice of dismissal

(1) No employer shall dispense with the services of an employee who has been in his continuous employment for not less than three months, without giving such person at least one months' notice in writing or wages in lieu of such notice :

Provided that such notice shall not be necessary where services of such employee are dispensed with for misconduct, after giving him an opportunity to explain the charge or charges against him in writing.

Therefore you will have to follow the procedure of first getting a report from the Client on the misconduct and then  issue Show cause Notice  and conduct an Enquiry by appointing an Enquiry Officers  report and act based on the Enquiry officers report.This is a safe and secure process .But many of the Temporary Employees considering their future will opt to resign facilitating the exit process.


The reference to the Delhi Act is for illustration and each report of "Misconduct" has to be tackled in accordance with the Shops and Establishments Act applicable to that State where the Temporary Employee is working.

With Regards


VS Rajan Associates,
Advocates & Notaries -Legal Consultants-HR
No.27, Ist Floor, Singapore Plaza,
No.164, Linghi Chetty Street,
Chennai - 600 001.
E-mail : rajanassociates@eth,net,
Off : 044-42620864, 044-65874684,
Mobile : 9025792684

Sounder Rajan V (Advocate)     06 December 2010

Subject - NO EPF Contribution on Leave encashment

Dear All

In decision of the Madras High Court of Mr Justice K.Chandru in the case of Thiru Arooran Sugars Ltd. And Five Ors. vs Asstt. Provident Fund Commissioner (Enf) Employees' Provident Funds Organisation And Anr *decided on 12/10/2007 wherein it was the stand of the respondent/PF Department that the leave encashment given to the workman is covered by the term of basic wages. In support of their stand, they were relying upon the judgment of the Bombay High Court as well as the Karnataka High Court and claimed all the petitioners/managements were bound to make contribution in terms of the leave encashment given to the workman as part of the basic wages.

But the Court rejected the contention of the Department and held

"If the two decisions of the Supreme Court in Bridge & Roof Company (India) Ltd's case (supra) as well as TI Cycles of India's case (supra) read together, there will be no difficulty in arriving at the conclusion that the basic wage was never intended to include in the leave with wages for which encashment is allowed. The term basic wage which includes all emoluments which are earned by an employee while on duty or on leave or on holidays with wages. In accordance with the terms of the contract of employment, it cannot mean it can only mean the weekly holidays, national festival holidays. In many cases, the employees do not take leave and encash it only at the time of retirement or as legal heirs at the time of his death, which is an uncertain contingency. Even though the employer made annual provisions for such contingency unless the contingency of encashing of leave takes place, the question of the actual payment to the workmen never takes place. In case, he avails the entire leave, during his tenure, then the question of payment of any contribution may not arise. Any payment of contribution cannot be based upon different contingencies and uncertainties.

Finally the Court precluded the Department from claiming Contribution on Leave Encashment and further held :

"By allowing the deduction on the encashment of annual leave, in no way, the employees are benefited and at the time of death or retirement or resignation, a lump-sum amount in his hand will give him a greater relief because at that time only, he is receiving the entire PF contributions standing to his credit also."

In the Staffing Industry in case Client permits Leave Encashment then application of the essence of the decision will become relevant for HR managers and the Compliance Team.

With Regards
VS Rajan Associates,
Advocates & Notaries & Legal Consultants for Recruiting & Staffing Industry
No.27, Ist Floor, Singapore Plaza,
No.164, Linghi Chetty Street,
Chennai - 600 001.
E-mail : rajanassociates@eth,net,
Off : 044-42620864, 044-65874684,
Mobile : 9840142164-9025792684-9025792634


Sounder Rajan V (Advocate)     08 December 2010

IMMEDIATE LEGAL QUESTIONS HAUNTING INDIAN STAFFING COMPANIES

Having been focused on the Staffing Industry in India which is at its crucial stage and our long standing experience of 30 years in the direct Litigation Support and acting for PSU‘s and Corporate and present counseling in Staffing Business for important Staffing Industry players we have always been focused on the analysis of proactive and preventive steps Staffing Companies can and should take to avoid claims and liability.

Despite these efforts it seems the Lawyers and Consultants end up doing more damage control in Courts and Tribunals. Through this damage control many lessons are learned. This is a continuing effort and cannot be viewed on a short term basis.

With each matter the Staffing Companies legal Team have always made an effort and during the course of the case and certainly at the end to talk about lessons learned. While they are numerous, and each perspective could be the subject of a book on the topic, the following are a few amongst the many key questions of which this is the first part:

1. Many a times the Contract signed with the employee is styled as Fixed Term Contract with a stipulation for termination, why is that there is litigation on termination ?

The Law is not clear since there is no positive provision in the Industrial Disputes Act as the action for termination in a Fixed Term Contract hinges on exclusion provided under Sec 2 (oo) of the Industrial Disputes Act. Therefore application of the exclusion by the Employer is subject to the Redressal Mechanism provided in the Act and there being different layers of redressal the damages that it could cause to the Staffing Company on an order of re-instatement could be onerous.Clients may insist termination without Notice pay but the best bet is to have a secure termination process based on sound legal advice.

With Regards


VS Rajan Associates,
Advocates & Notaries -Legal Consultants-HR
No.27, Ist Floor, Singapore Plaza,
No.164, Linghi Chetty Street,
Chennai - 600 001.
E-mail : rajanassociates@eth,net,
Off : 044-42620864, 044-65874684,
Mobile : 9025792684-9025792634

Sounder Rajan V (Advocate)     11 December 2010

Dear All


Sub: ID Card for Temporary workers .

In the Temping Industry a common Question like this keeps cropping up:

I am designing ID cards for temporary employees. Is it important to mention the employee status as "temporary employee" or name and designation is enough.

Answer : There need not be any doubt the Form is mandated in the CLRA Rules

76. Employment card.-(I) Every contractor shall issue an employment card in Form XIV to each worker within three days of the employment of the worker .
(II) The card shall be maintained up to date and any change in the particulars shall be entered therein.

Therefore if you just say Form XIV of the CLRA Rules 1971 it is sufficient.You can refer to the Form in the Rules and go by it.




With Regards


VS Rajan Associates,
Advocates & Notaries & Legal Consultants for Staffing & Recruiting Industry
No.27, Ist Floor, Singapore Plaza,
No.164, Linghi Chetty Street,
Chennai - 600 001.
E-mail : rajanassociates@eth,net,
Off : 044-42620864, 044-65874684,
Mobile : 9840142164-9025792684-9025792634


Sounder Rajan V (Advocate)     13 December 2010

Dear All

In continuation of our earlier post on the IMMEDIATE LEGAL QUESTIONS HAUNTING INDIAN STAFFING COMPANIES in the Staffing or Temping Industry the following can be considered as pillars of Legal Compliance :

1.Compliance-Statutory -.Liaison with Departments on the following :

Labour Welfare Fund ACT Statement of Contribution along with cheque to be submitted to the Authority Concerned.

The Profession Tax ACT Monthly Returns along with cheque.

The Contract Labour (R&A) ACT, 1970 Half Yearly Return - by Contractor to be submitted to Asst. Labour Commissioner

The Maternity Benefit ACT, 1961 Annual Return

The (National & Festival Holidays) ACT, 1963 Annual Return.

The Minimum Wages ACT, 1948 Annual Return

The Contract Labour (R&A) ACT, 1970 Annual Return by Principal Employer.

The Payment of Wages ACT, 1936 Annual Return

The Employees Provident Fund ACT, 1952 3A & 6A Annual Individual Returns & Returns of Contributions to the Regional Provident Fund Commissioner.

The Employees State Insurance ACT, 1948 Summary of Contribution

The Contract Labour (R&A) ACT, 1970 Renewal of Licence .

The Payment of Bonus ACT, 1965 Annual Return

Shops & Establishment Act Renewal & Registration Certificate.

Temporary Employees

Joining Compliance


Monthly Compliance of Statutes in respect of the Temps .


Exit /Resignation/Severance /Termination Compliance

2.Compliance-Audit -Conduct Audit of the Compliance done under (1) either monthly/quarterly ,Half yearly and improve / enforce compliance .

3. Legal Consultation & Litigation Support-Provide Legal Support and advisory services for (1) & (2).


The above can be done Branch wise .If all the three are independent and existing and report their activities by way of MIS any Staffing or Temping organization can have trouble free functioning. These can exist within the very organization itself or "out-sourced" .Of course cost is involved but the cost will be nothing when compared to encountering and settling claims out of violations.

With Regards


VS Rajan Associates,
Advocates & Notaries -Legal Consultants-HR
No.27, Ist Floor, Singapore Plaza,
No.164, Linghi Chetty Street,
Chennai - 600 001.
E-mail : rajanassociates@eth,net,
Off : 044-42620864, 044-65874684,
Mobile : 9840142164-9025792684-9025792634

Sounder Rajan V (Advocate)     16 December 2010

IMMEDIATE LEGAL QUESTIONS HAUNTING INDIAN STAFFING COMPANIES


In continuation of our earlier post on the subject :

Clients want the Staffing or Temping Company to terminate the Employee for dishonesty, theft, misconduct etc? Is it correct?

There is nothing like summary termination in Indian Law except if it is for proven mis-conduct.

It has to be proven beyond doubt in an Enquiry done for the purpose. In Staffing & Temping Business such Enquiry cannot be practically done as the incident would have occurred in the Clients place.Definitely the risk is there in such termination action without conducting an enquiry is there.There is an element of practical and high risk in such terminations.All such terminations can bounce back with possible Labour Claims.

A definitive process with expert Legal support has to be chalked out with the concurrence of the Client at the time of signing the Contract with the Client itself.This would avoid the risk.

With Regards


VS Rajan Associates,
Advocates & Notaries -Legal Consultants-HR
No.27, Ist Floor, Singapore Plaza,
No.164, Linghi Chetty Street,
Chennai - 600 001.
E-mail : rajanassociates@eth,net,
Off : 044-42620864, 044-65874684,
Mobile : 9025792684-9025792634


Sounder Rajan V (Advocate)     18 December 2010

Andhra Pradesh contract labour act 2003 amendment

 

The State amendment of Andhra Pradesh in 2003 which introduced a clause restraining the employment of Contract Labour in core activities of any establishment if the same was prohibited by Notification .But it introduced the following exemptions.

[a]. The normal functioning of the establishments is such that the activity is ordinarily done through contractors; or
[b]. The activities are such that they do not require full time workers for the major portion of the working hours in a day or for longer periods, as the case may be;
[c] Any sudden increase of volume of work in the core activity which needs to be accomplished in a specified time"

Also the Andhra Pradesh Amendment introduced a definition clause for "core activities" of an establishment meaning as any activity for which establishment is set up which includes any activity which is essential or necessary to the core activity and it again provides certain exceptions which are follows:-

1]. Sanitation works, including sweeping, cleaning, dusting and collection and disposal of all kinds of waste;
2]. Watch and ward services including security service;
3]. Canteen and catering services;
4]. Loading and unloading operations;
5]. Running of hospitals, educational and training institutions, guest houses, clubs and the like where they are in the nature of support services of an establishment;
6]. Courier services which are in nature of support services of an establishment;
7]. Civil and other constructional works, including maintenance;
8]. Gardening and maintenance of lawns, etc;
9]. Housekeeping and laundry services, etc., where they are in nature
support services of an establishment;
10]. Transport services including ambulance services;
11]. Any activity of intermittent in nature even if that constitutes a
core activity of an establishment; and
12]. Any other activity which is incidental to the core activity.

Also a rider was introduced by the Andhra Pradesh Amendment that the above 12 activities by themselves should not be the core activities of such establishment.

It must be noticed that the Andhra Pradesh Amendment has force only in Andhra Pradesh State and not in the rest of the Country and this was the first step initiated by a State Govt to put India on the path of globalization.

We invite the views of readers in lawyersclubindia whether there is a need for a  similar amendment  to the Law which has  to be initiated by the Ministry of labour of the Central Government so that it should have National application.

With Regards

V.Sounder Rajan
VS Rajan Associates,
Advocates & Notaries & Legal Consultants
No.27, Ist Floor, Singapore Plaza,
No.164, Linghi Chetty Street,
Chennai - 600 001.
E-mail : rajanassociates@eth,net,
Off : 044-42620864, 044-65874684,
Mobile : 9840142164-9025792684.

Sounder Rajan V (Advocate)     21 December 2010

Dear All

The portion of Maharashtra Govt Draft Labour Policy 2010 on Contract Labour is very impressive which reads like this:

Contract Labour

The issue of contract labour is one on which employers and unions are strongly divided. Employers see contract labour as an essential component of labour market flexibility that will contribute to economic efficiency and competitiveness. Trade unions see contract labour as a form of exploitation and a means to deny workers permanent jobs.

Contract labour must be distinguished from outsourcing of tasks to particular entities for cleaning and security services, computer technology expertise, and consultancy services. These are commercial contracts for service as between the user and service-provider and fall outside the scope of labour legislation. The provider-entity, however, is an employer and thus is required to comply with all appropriate labour laws.


Out-sourcing and commercial contracts are not the real issue. The real issue is the employment of labour, under contract, for specific durations or specific tasks as a means of cost-cutting, or to provide flexibility, or as a substitute for jobs that would normally be regular and permanent.

The Department of Labour proposes to facilitate discussions with the social partners on the issue of contract labour with a view to deciding on a model that provides both fairness and flexibility. This may involve some discussion on possible amendments of existing laws as, for example, preventing employers from using lower-cost contract labour as a substitute for permanent workers, and by paying a loading to contract workers to compensate for their loss of benefits including leave and access to social security. It might also consider whether the current system of contracting agents as the employers of contract workers, as distinct from the direct employment of such workers by the principal employer, is in the best interests of works and employers.


The productivity of contract workers is also an issue for tripartite discussions.The Department of Labour, through discussions with social partners as mentioned above, would like to evolve models and/or structures through which a win-win situation can be developed, both for the employers and the workers in a globalized scenario. The win-win situation could be developed if the employer is given flexibility to engage labour and the labour is ensured protection of rights. One such proposal could also be to engage contract labour with a loading factor as a premium for flexibility.

It is also suggested that in order to develop a long term solution on contract labour and develop models to meet the twin concerns of flexibility to industry and fairness to labour, it may be necessary to go through a transition phase in which, the first step could be to study the present labour laws and their actual implementation to identify on what is incentivising contract labour and disguised employment? It would also be necessary to define fairness in terms of “equal treatment”. What is “equal treatment” would also have to be agreed upon more specifically between all social partners in a clear-cut manner.

Further, there would be need to work out solutions along with changes in law if required, which would further the objective to reach towards the end goal of increased productivity in a situation of ‘flexibility’ and ‘fairness’ as defined by ‘equal treatment’.


Lets wait for the above being translated in the form of Amendments to CLRA by the State Government.


With Regards


VS Rajan Associates,
Advocates & Notaries & Legal Consultants[HR]
No.27, Ist Floor, Singapore Plaza,
No.164, Linghi Chetty Street,
Chennai - 600 001.
E-mail : rajanassociates@eth,net,
Off : 044-42620864, 044-65874684,
Mobile : 9840142164-9025792684-9025792634


Sounder Rajan V (Advocate)     22 December 2010

Dear All

By way of refurbishing HR Knowledge for the Staffing Industry we have attached the historic ESI Circular which in effect had recognized Outsourcing as a legal practice in India .


As per ESI Circular the following types of Outsourcing Contracts are recognized It categorizes the outsourcing, process and calls outsourcing in a simple term of “Job work”:

(a) The Jobwork done inside the factory/establishment premises through Contractors/Immediate Employers having independent ESIC Code Nos.

(b) Jobwork done inside the factory premises through Contractors/Immediate Employers not having independent ESIC Code Nos.

(c) Jobwork done outside the factory/establishment premises through factories/establishments which are having independent Code Nos.:

(d) Jobwork done outside the factory/establishment premises through factories/establishments which are not having independent Code Nos but the supervision being exercised by the Principal Employer

(e) Jobwork done outside the factory premises through units engaging less than 10/20 employees but working exclusively for the Principal Employer

(f) Jobwork done outside the factory/establishment premises through factory/establishment engaging less than 10/20 employees which are not independently coverable, and where no supervision is exercised and who are undertaking the work for more than one employer

(g) Jobwork done outside the factory premises through Contractors/Immediate Employers who perform the work through Home workers or works in non-implemented areas
 
Please see the download  portion of lawyersclubindia.com for viewing the whole circular.


With regards
V.Sounder Rajan
VS Rajan Associates,
Advocates & Notaries & Legal Consultants
No.27, Ist Floor, Singapore Plaza,
No.164, Linghi Chetty Street,
Chennai - 600 001.
E-mail : rajanassociates@eth,net,
Off : 044-42620864, 044-65874684,
Mobile : 9840142164-9025792684-9025792634

Sounder Rajan V (Advocate)     23 December 2010

Dear Viewers

 

With reference to our post on ESI Circular on Outsourcing and in case you do not find it in the Download portion  and you need the Circular please send mail to rajanassociates@eth.net and our Office will send it  to you.
 

With regards
V.Sounder Rajan
VS Rajan Associates,
Advocates & Notaries & Legal Consultants
No.27, Ist Floor, Singapore Plaza,
No.164, Linghi Chetty Street,
Chennai - 600 001.
E-mail : rajanassociates@eth,net,
Off : 044-42620864, 044-65874684,
Mobile : 9840142164-9025792684-9025792634

Sounder Rajan V (Advocate)     23 December 2010

Sub: Union Government open to Changes in Contract Labour Law[CLRA] .


Dear All

As per the report of the Premier Press Organization in India Press Trust of India [PTI] in its report dated 22-10-2010 published in the Business Standard of 23 rd October 2010 Hon’ble Minister of State for Labour and Employment Mr Harish Rawat addressing a seminar on 'Management of Contract Labour in PSEs'[Public Sector Enterprises] organized by Standing Conference of Public Enterprise expressed concerns over denial of statutory benefits to contract labour, and said the government would proceed on amendments to the law for such workers with an open mind.


"As far as amendments to the Contract Labour (Regulation & Abolition) Act, 1970 are concerned, we will proceed with an open mind," Mr Rawat said Industry has been demanding for long that the Section-10 to the Contract Labour (Regulation & Abolition) Act 1970 should be dispensed with but indicated that on the contrary, the Unionists think the other way round. He indicated that under Section 10 the Government can identify any process, operation or other work in an establishment, where it can prohibit any employment of contract labour and pointed out that the act is aimed to abolish and regulate contract labour.

Asked whether, any amendment bill for making changes in the Act is expected to be tabled in the forthcoming winter session, Mr Rawat said, "We are preparing the draft bill which is unlikely to be tabled in the next Parliament session."

The Minister urged the public sector to be a role model employer and to show a pathway to the private sector in implementing government regulations on labour.

Echoing similar views, Labour Secretary P .C .Chaturvedi said, "The law (for contract labour) has lost its spirit. There was an intention to reduce labour law over period of time, but it happened the other way round."
"Everybody is employing contract labour to reduce cost. But cutting cost does not mean exploitation of labour. It should be done by increasing productivity by modernization, best practices and using best technology," he said.

Mr Chaturvedi said, "Now public sector is using contract labour to cut cost and such workers are treated as second grade citizens."

"It is the PSUs, which should show the way to private sector. If the contract workers are treated with human face, the demand of regularization (of employment) would mellow down," he added.

On this occasion, Director General SCOPE U D Choubey said: "There are plethora of social security laws in India and SCOPE endorses the views of the government that welfare of the workers is a real concern as large number of people in the country are living below poverty line."

We support the views of the Minister and Labour Secretary P C Chaturvedi that there should be a balanced approach.

We eagerly await the draft legislation ..

With Regards


VS Rajan Associates,
Advocates & Notaries & Legal Consultants
No.27, Ist Floor, Singapore Plaza,
No.164, Linghi Chetty Street,
Chennai - 600 001.
E-mail : rajanassociates@eth,net,
Off : 044-42620864, 044-65874684,
Mobile : 9840142164-9025792684-9025792634



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