INDIAN LABOUR LAWS & ITS IMPACT ON INDIAN CONTRACTUAL EMOPLOYEES

 

Dear Friends

As we all are aware that there are certain labor laws are applicable on different establishment.The basic intent is to enforce labor laws to protect the interest of all sections of employees. Now a day, every organization has contractual employees. The contractual employees are being deputed client for tendering their services, but they are getting salary from their parent company. But as per contract labor act, the client organization is considered as principal employer. So it is a principal employer liability to ensure that all applicable labor laws are maintained by the manpower suppliers.

 

Every contractual employee is also eligible for Social security benefits such as Provident Fund, ESIC and Gratuity. They also should get their monthly salary on time. But there is a deviation. And contractual employee’s salary has to be calculated on 26 days not on the number of days in a month. But in practice, there is lots of deviation. It is not one or two incidents. It has been happening quite often that the manpower suppliers do not submit statutory contributions towards Provident Fund and ESIC for their employees. Even Gratuity is also not being paid to the outgoing

contractual employees. Typically contractual employees come mostly from under developed states to develop states for earning. Due to lack of awareness most of them are not even aware of their statutory benefits. Although regularity bodies are vigilant to enforce the labor laws.

 To prevent this, Human resources has a big role to play. Before on boarding any manpower supplier, they should evaluate with respect to applicable labour laws. Similarly before passing manpower supplier invoice, every statutory document along with salary register and salary transfer

statement is expected to be verified by the Human Resources to stop manipulation. For contractual employees Gratuity, employer should enforce manpower suppliers to purchase Gratuity policy from LIC. It is also suggested that regularities bodies should organize public awareness program towards statutory benefits. There are few incidents will share with you on my next blog

      

To Be continued

Comments

  1. Sanjeet SinghJune 29, 2021 at 4:30 AM

    Great Blog I agreed with your views.

    ReplyDelete
  2. UnknownJune 29, 2021 at 4:50 AM

    Very good blog. Absolutely correct. Contractual employees should get all the benefits as per Labour Law.

    ReplyDelete

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