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Chrm Message From: rajanassociates Total Posts: 124 Join Date: 22/11/2010
Rank: Leader Post Date: 22/11/2010 22:34:44 Points: 620 Location: India
Dear All


We are specially creating this Post  in CHRM for the Staffing & Recruiting Industry  Professionals  especially when  the Industry 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. 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  has to operate and function within the four corners of the existing Laws.This post is an begining in that direction. In fact there is another way of looking at the problem, the need to operate within the Legal framework taking the benefit of the existing laws.This is a win-win situation.


With Regards

V.Sounder Rajan  Advocate
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
Chrm Message From: rajanassociates Total Posts: 124 Join Date: 22/11/2010  
Rank: Leader Post Date: 24/11/2010 11:20:31 Points: 620 Location: India
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.

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.



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

Chrm Message From: rajanassociates Total Posts: 124 Join Date: 22/11/2010  
Rank: Leader Post Date: 25/11/2010 01:57:17 Points: 620 Location: India

 Sub: Whether Staffing Industry is Industry ?

A confusion may come into the mind of the Staffing Industry whether it will come within the definition of Industry .

For this Sec 2 (j) of the Industrial Disputes Act has to be read which  defines "industry" means any systematic activity carried on by co-operation between an employer and his workmen (whether such workmen are employed by such employer directly or by or through any agency, including a contractor) for the production, supply or distribution of goods or services with a view to satisfy human wants or wishes (not being wants or wishes which are merely spiritual or religious in nature), whether or not, - (i) any capital has been invested for the purpose of carrying on such activity; or
(ii) such activity is carried on with a motive to make any gain or profit, and includes - (a) any activity of the Dock Labour Board established under section 5A of the Dock Workers (Regulation of Employment) Act, 1948 (9 of 1949);
(b) any activity relating to the promotion of sales or business or both carried on by an establishment, but does not include - (1) any agricultural operation except where such agricultural operation is carried on in an integrated manner with any other activity (being any such activity as is referred to in the foregoing provisions of this clause) and such other activity is the predominant one.
Explanation : For the purposes of this sub-clause, "agricultural operation" does not include any activity carried on in a plantation as defined in clause (f) of section 2 of the Plantations Labour Act, 1951 (69 of 1951); or
(2) hospitals or dispensaries; or
(3) educational, scientific, research or training institutions; or
(4) institutions owned or managed by organizations wholly or substantially engaged in any charitable, social or philanthropic service; or
(5) khadi or village industries; or
(6) any activity of the Government relatable to the sovereign functions of the Government including all the activities carried on by the departments of the Central Government dealing with defence research, atomic energy and space; or
(7) any domestic service; or
( any activity, being a profession practised by an individual or body of individuals, if the number of persons employed by the individuals or body of individuals in relation to such profession is less than ten; or
(9) any activity, being an activity carried on by a co-operative society or a club or any other like body of individuals, if the number of persons employed by the co-operative society, club or other like body of individuals in relation to such activity is less than ten;

The under lined portion will clarify this as it will come within the supply of  Services through a Contractor.

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

Chrm Message From: rajanassociates Total Posts: 124 Join Date: 22/11/2010  
Rank: Leader Post Date: 25/11/2010 11:27:08 Points: 620 Location: India
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 or Flexi Staffing Industry in case Client permits Leave Encashment then application of the essence of the decision will become relevant.

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

Chrm Message From: rajanassociates Total Posts: 124 Join Date: 22/11/2010  
Rank: Leader Post Date: 26/11/2010 11:57:34 Points: 620 Location: India
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.

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


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