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Chrm Message From: rajanassociates Total Posts: 136 Join Date: 22/11/2010
Rank: Leader Post Date: 22/11/2010 22:34:44 Points: 680 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: 136 Join Date: 22/11/2010  
Rank: Leader Post Date: 21/12/2010 09:58:18 Points: 680 Location: India
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’.


We are optimistic to see  the above being translated into Law by the State Government.


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
Chrm Message From: rajanassociates Total Posts: 136 Join Date: 22/11/2010  
Rank: Leader Post Date: 23/12/2010 01:50:29 Points: 680 Location: India
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 here 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  Mr Harish Rawat and Labour Secretary P C Chaturvedi that there should be a balanced approach.

We eagerly await the draft legislation on behalf of the Industry.

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



Chrm Message From: rajanassociates Total Posts: 136 Join Date: 22/11/2010  
Rank: Leader Post Date: 26/12/2010 01:22:02 Points: 680 Location: India
Dear All

Changes made by the recent amendments to Section 11 of the Industrial Disputes Act  –

Enforcing the Awards of Labour Court.these amendments came into force w.e.f mid September 2010.

In section 11 of the principal Act, after sub-section eight , the following sub-sections shall be inserted, namely:

“(9) Every award made, order issued or settlement arrived at by or before Labour Court or Tribunal or National Tribunal shall be executed in accordance with the procedure laid down for execution of orders and decree of a Civil Court under order 21 of the Code of Civil Procedure, 1908

(10) The Labour Court or Tribunal or National Tribunal, as the case may be, shall transmit any award, order or settlement to a Civil Court having jurisdiction and such Civil Court shall execute the award, order or settlement as if it were a decree passed by it.”

By introduction of the provision the award of Labour Court / Tribunals is now additionally executable by a Civil Court. After the Labour Court/Tribunal passes the award it shall be transmitted to the Civil Court for execution. By this process both the moveable and immovable property of the Judgment Debtor i.e. the person/company against whom the award is passed can be attached. Also the Judgment Debtor can be arrested and put in prison. Earlier the awards were executed by the Revenue Recovery process alone.



With Regards

V.Sounder Rajan
VS Rajan Associates,
Advocate & 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: 136 Join Date: 22/11/2010  
Rank: Leader Post Date: 28/12/2010 01:56:39 Points: 680 Location: India
IMMEDIATE LEGAL QUESTIONS HAUNTING INDIAN STAFFING COMPANIES


In continuation of our earlier post on the subject :

A common question arises in Contractual Employment Whether on termination of the Contract Employee the Employer is bound to issue the Experience certificate ?

In Contract Labour Law [CLRA] the Relieving Letter is called as Service Certificate and governed by Rule 77 of the CLRA Rules .This can also be called as the Experience Certificate.


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.

The salient details are:

Name and address of contractor
Name and address of establishment in/
under which contract is carried on …………
Nature and location of work
Name and address of the workman
Age or Date of Birth
Identification Marks
Father's / Husband's name
Total period Employed
Starting Date:
Ending date:
Nature of the Work :
Details of Salary/Wages;

Consequently issue of the Service Certificate as per Form XV is mandatory.It has to be automatically issued without request from the Contract Employee for the following cases:

1.Termination
2.Resignation
3.Absconding or voluntary cessation of work.

Issue of the Service Certificate is also protective as the Last working Day with the Contractor and the Principal Employer is established.Therefore from the Employers side there should be no hesitation in issuing this certificate as a part of the F & F.Impression to the contrary may lead to Labour claims for back wages and re-instatement claims.The issue of the Certificate is therefore very protective.

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

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