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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: 07/01/2011 04:07:23 Points: 680 Location: India
IMMEDIATE LEGAL QUESTIONS HAUNTING INDIAN STAFFING COMPANIES

In continuation of our earlier post on the subject:

What is Sec 25 F of the Industrial Disputes Act 1947

It reads like this :

25F. CONDITIONS PRECEDENT TO RETRENCHMENT OF WORKMEN. - No workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until - (a) the workman has been given one month's notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice;
(b) the workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days' average pay for every completed year of continuous service or any part thereof in excess of six months; and
(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified by the appropriate Government by notification in the Official Gazette.

Since the word “retrenchment is used in Section 25 F the definition of retrenchment has to be seen in Section 2 (OO) :

(oo) "retrenchment" means the termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action, but does not include –
(a) voluntary retirement of the workman; or
(b) retirement of the workman on reaching the age of superannuating if the contract of employment between the employer and the workman concerned contains a stipulation in that behalf; or
(bb) termination of the service of the workman as a result of the non-removal of the contract of employment between the employer and the workman concerned on its expiry or of such contract being terminated under a stipulation in that behalf contained therein; or
(c) termination of the service of a workman on the ground of continued ill-health;

For Compliance of Sec 25 F of the ID Act the following is to be done :

i. The employee of the Staffing Entity sent for work to the Client must be given a one month's notice in writing, indicating the reasons for retrenchment. The retrenchment can take effect only after the notice period has expired, or if the employee of the Staffing Entity sent for work to the Client has been paid wages in lieu of such notice.

ii. The employee of the Staffing Entity sent for work to the Client must be paid, at the time of retrenchment, compensation, which is equivalent to fifteen days' average pay for every completed year of continuous service or any part thereof in excess of six months.

iii. A notice must be served in the prescribed manner, on the appropriate Government. (Section 25F of the ID Act)

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.

Chrm Message From: rajanassociates Total Posts: 136 Join Date: 22/11/2010  
Rank: Leader Post Date: 11/01/2011 11:06:15 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 the Staffing Industry is whether compliance of Sec 25(F) of the Industrial Disputes Act a correct process for termination of the Deputed candidate?

Absolutely it is a water tight process and a safeguard for avoidance of wrongful Termination litigation .In the field you will find Clients will hesitate to minimum provide the 15 days’ notice for terminating the candidate.

For Compliance of Sec 25 F of the ID Act the following is to be done :

i. The employee of the Staffing Entity sent for work to the Client must be given a one month's notice in writing, indicating the reasons for retrenchment. The retrenchment can take effect only after the notice period has expired, or if the employee of the Staffing Entity sent for work to the Client has been paid wages in lieu of such notice.

ii. The employee of the Staffing Entity sent for work to the Client must be paid, at the time of retrenchment, compensation, which is equivalent to fifteen days' average pay for every completed year of continuous service or any part thereof in excess of six months.

iii. A notice must be served in the prescribed manner, on the appropriate Government. (Section 25F of the ID Act).It has become a practice in the Industry to dispense with this Notice.Government can take steps to delete this provision .



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.

Chrm Message From: rajanassociates Total Posts: 136 Join Date: 22/11/2010  
Rank: Leader Post Date: 13/01/2011 09:07:31 Points: 680 Location: India

Dear All

Sub: Impact of recent changes in Appropriate Govt for disputes between Contractor and Contract Labour.

The impact of the  recent September 2010 Amendment on the definition of appropriate Govt has been clarified Accordingly Industry, corporation, PSEs and PSU owned or controlled by the Central Govt., for them appropriate Govt. would be Central Govt. and if such industry under the control of State Govt., appropriate Govt. would be State Govt. The amendment reads as follows:

Amendment of section 2

2. In the Industrial Disputes Act, 1947 (14 of 1947) (hereinafter referred to as the principal Act), in section 2,—

(i) in clause (a),––

(a) in sub-clause (i), for the words “major port, the Central Government, and”, the words “major port, any company in which not less than fifty-one per cent of the paid-up share capital is held by the Central Government, or any corporation, not being a corporation referred to in this clause, established by or under any law made by Parliament, or the Central public sector undertaking, subsidiary companies set up by the principal undertaking and autonomous bodies owned or controlled by the Central Government, the Central Government, and” shall be substituted;

(b) for sub-clause (ii), the following sub-clause shall be substituted, namely: -

“(ii) in relation to any other industrial dispute, including the State public sector undertaking, subsidiary companies set up by the principal undertaking and autonomous bodies owned or controlled by the State Government, the State Government:

Provided that in case of a dispute between a contractor and the contract labour employed through the contractor in any industrial establishment where such dispute first arose, the appropriate Government shall be the Central Government or the State Government, as the case may be, which has control over such industrial establishment.”;

Another important Amendment affecting the Staffing Industry and Contractors in general is inclusion of the following proviso :

Provided that in case of a dispute between a contractor and the contract labour employed through the contractor in any industrial establishment where such dispute first arose, the appropriate Government shall be the Central Government or the State Government, as the case may be, which has control over such industrial establishment.


The above proviso literally means that for the Employees of the Contractor of such Industries the concerned Government shall be the Central Government or the State Government, as the case may be, which has control over such industrial establishment. In case the Staffing Company is a Contractor for a central PSU then for the employees of the Contractor to raise a dispute will be the Central Govt and if deputed for a State PSU then it will be the State Govt.

With Regards

V.Sounder Rajan
VS Rajan Associates,
Advocates & Notaries & Legal Consultants -Labour Law
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: 18/01/2011 09:04:58 Points: 680 Location: India

Sub: Dealing with Temporary Employees Absconding cases in the Staffing Industry


Dear All

In the Staffing Industry one can find several instances of the Temporary Employees absconding from the place of work.i.e the place of the Principal Employer.

 In such cases the Temporary Employee need to be terminated so that the Full  & Final  is done and the name removed from Pay rolling records.

Securing this process is a challenge for the HR Managers of Staffing and Temping Business .

The process will be dependent on each of the Staffing Company HR practice and needs of the Client.

There is a practice in the Staffing Industry that until the principal Employer i.e the Client  gives the “No dues “the F & F cannot be done .This is a Standard practice in the Temping and Staffing Industry.Therefore the Termination practice has to be synchronized  with that.

Staffing Companies have to have a secure Legal Department or avail Expert Legal advice on Severance and Termination practices tailor made for their needs which in the long run will be a security for the Staffing Industry to avoid post termination claims by the Temporary Employees which may make inroads into  the slender margins earned from the  Principal Employer [Client] .

 

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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