Contract workers and labour standards: Experiences from India

Transcription

1 Contract workers and labour standards: Experiences from India

2 What is contract labour? Definition as per law A workman is deemed to be employed as Contract Labour when he is hired in connection with the work of an establishment by or through a contractor. Contract workmen are indirect employees; persons who are hired, supervised and remunerated by a contractor who, in turn, is compensated by the establishment. Contract labour has to be employed for work which is specific and for definite duration. Contract Labour, by and large is not borne on pay roll nor is paid directly.

3 No Contract labour Contract labour should not be employed where: (a) The work is perennial and must go on from day to day; (b) The work is incidental to and necessary for the work of the factory; (c) The work is sufficient to employ considerable number of whole time workmen; and (d)the work is being done in most concerns through regular workmen.

4 Why?

5 Issues?

6 Problems? Inferior labour status, casual nature of employment, lack of job security and poor economic conditions are the major characteristics of contract labour. Exploitation Socio-cultural issues Regional issues

7 Contract labour in India All pervasive Irrespective of sector/activity Manufacturing Agriculture Service sector( trade, hotel, transport and communication) Combination of outsourcing/contracting According some stats about 80 million people are on contract jobs and only 300,000 in the organized sector

8 Abuses No rights Poor wages Bad working conditions Long working hours No social security( future bleak) No viable options-vicious circle Sector specific problems

9 The contract labour( regulation and abolitions act) Applicability Roles Principal employer Contactor Requirements Licensing Amenities Records Returns

10 Contract labour Act- Application The Act applies to every establishment in which 20 or more workmen are employed or were employed on any day on the preceding 12 months as contract labour and to every contractor who employs or who employed on any day of the preceding 12 months 20 or more workmen. To every contractor who employs or who employed on any day of the preceding twelve months twenty or more workmen It does not apply to establishments where the work performed is of intermittent or seasonal nature. However An establishment wherein work is of intermittent and seasonal nature will be covered by the Act if the work performed is more than 120 days and 60 days in a year respectively.

11 Definitions "establishment" means - (i) any office or department of the Government or a local authority, or (ii) any place where any industry, trade, business, manufacture or occupation is carried on; "principal employer" head of the establishment/factory

12 Licensing The establishments covered under the Act are required to be registered as the Principal Employer. Likewise, every contractor to whom the Act applies is required to obtain a license and not to undertake or execute any work through contract labour except under and in accordance with the license issued.

13 Caution If an Establishment is not registered or if the Contractor is not licensed then the contract labour shall be deemed to be the direct workmen The Principal Employer or the Establishment shall be liable for the wages, services and facilities of the contract labour

14 Wages The contractor is required to pay wages and to ensure disbursement of wages in the presence of the authorised representative of the Principal Employer. In case of failure on the part of the contractor to pay wages either in part or in full, the Principal Employer is liable to pay the same. In case of failure on the part of the contractor to pay wages either in part or in full, the Principal Employer is liable to pay the same.

15 Principal employer? To do- Registration of the Establishment. Display of the following notices rate of wages, hours of work, Wage period, date of payment of wages, date of payment of unpaid wages and name and address of the inspector having jurisdiction. Maintenance and Preservation of Register of Contractor.

16 Principal employer? Filing of Return of Commencement and Completion of the Contract. Filing of Annual Return. Supervising the responsibilities of Contractor to avoid enjoining of the liabilities. Ensure that facilities of Canteen, Drinking Water, Washing, Rest Room, Latrines and Urinals, First Aid, Crèche are provided by the Contractor. Monitor payment of wages( PE liable to make payment if contrator fails to make payment)

17 Contractor? To do Licensing. Renewal of the License. Maintenance and Preservation of Register of Persons employed, Muster Roll, Register of wages, Register of Fines, Register of Deductions for damages or loss, Register of advances, Register of overtime Display of Notice rate of wages, hours of work, wage period, date of payment of wages, date of payment of unpaid wages and name and address of the inspector having jurisdiction. Provide facilities of, Drinking Water, Washing, Latrines and Urinals, First Aid, Crèche( if 20 or more women are employed).

18 Contractor? Employment card. Service Certificates. Half yearly return. Provide for one or more canteens, if 100 or more contract labourers are employed Provide rest-rooms wherein contract labour is required to halt at night in connection with the work of an establishment. The rest rooms shall be sufficiently lighted and ventilated and shall be maintained in a clean and comfortable condition. If the contractor does not is not provided by the amenities prescribed, the principal employer shall be liable to provide the same

19 Records and registers Every principal employer and every contractor shall maintain such registers and records giving particulars of contract labour employed, the nature of work performed by the contract labour, the rates of wages paid to the contract labour Hours of work and such other particulars in such form as may be prescribed. This information shall also be displayed as prescribde

20 Records and registers Every principal employer and every contractor shall keep exhibited in such manner as may be prescribed within the premises of the establishment where the contract labour is employed, notices in the prescribed form containing particulars

21 Records and registers Register of contractors.-principal employer shall maintain a register of contractor in Form XII Register of persons employed.-contractor shall maintain a register in Form XIII Employment Card.-Contractor shall issue an employment card in Form XIV to each worker within three days of the employment of the worker Service Certificate:- On termination of employment for any reason whatsoever the contractor shall issue to the workman whose services have been terminated a Service Certificate in Form XV Maintain a Muster Roll and a Register of Wages in Form XVI and Form XVII respectively Maintain a Register of Deductions for damage or loss, Register of Fines and Register of Advances in Form XX, Form XXI and Form XXII respectively

22 Records & registers Maintain a Register of Overtime in Form XXIII recording therein the number of hours of, and wages paid for, overtime work, if any Contractor shall, where the wage period is one week or more, issue wage slips in Form XIX Principal Employer shall file Annual return - Form XXV Contractor shall file half yearly returns in Form XXIV Under other acts Payment of Wages Act, 1936 (4 of 1936), Minimum Wages Act, 1948 (11 of 1948)» Muster Roll;» Register of Wages;» Register of Deductions;» Register of Overtime;» Register of Fines;» Register of Advances;» Wage slip.

23 Others laws to consider Workmen compensation act Payment of Gratuity Act 1972 Maternity Benefit Act 1951 Employees P.F and Miscellaneous Provision Act 1952 Minimum Wages Act 1948: Payment of Wages Act 1936 Equal Remuneration Act 1979 Payment of Bonus Act 1965 Industrial Disputes Act 1947 Industrial Employment's (Standing Orders) Act 1946 Trade Unions Act 1926 Inter-State Migrant workmen's (Regulation of Employment & Conditions of Service) Act 1979 Factories Act 1948

24 Practices

25 Way forward Obtain licenses. Ensure wages are paid as applicable and under supervision. Verify records periodically. Ensure amenities are provided. Ensure records are maintained. Returns must be filed.