Contract Labour Management and Managing Outsourcing by Dr P K Padhi

Introduction:

Now-a-days, many activities, like house keeping, security, canteen, logistic, maintenance, pay-roll, recruitment etc are outsourced by the organizations due to variety of reasons. For instance, to concentrate in the core activity, less legal compliance, cost reduction, less labour problem and many more. Even some of the organizations prefer to outsource their core activity too.

The Contract Labour (Regulation & Abolition) Act, 1970, prescribes certain rules and regulations which are to be complied with before engaging the contract labour. The Apex Court has discussed in different times and many cases those are to be understood or else all contract labour may be declared your workmen or the employer may be subject to penal consequences.

It is therefore essential for the executives to know the legal issues involved and compliances required either before and/or after outsourcing the core and/or ancillary activities of the organizations where they are working.

The intention behind conducting this workshop is to provide a platform where the participants would gain a first-hand experience to the practical inputs with a view to hone their skills in managing outsourcing legally and efficiently.

With Latest Amendments:

• Dec 2016, Jan 2017 & Feb 2017 Ordinance Notification of Labour Law Department 
• Ease of Compliance to Maintain Registers under various Labour Laws Rules, 2016 
• 2016 – Supreme court Judgment – State of Punjab vs Jagjit Singh

Objectives:

• To understand the practical aspects of rules and regulations that are applicable for outsourcing 
• To deal with the important legal issues while managing outsourced activities.

Broad Coverage:

• IT Industry & Outsourcing 
• Manufacturing & Outsourcing 
• Infrastructure & Outsourcing 
• Consultancy and Services Industry & Outsourcing 
• Contract Labour & Outsourcing 
• Legal Compliance

N: B: The above mentioned topics would be addressed through Labour Laws and Contract Law.

Programme Contents:

Contract Labour (Regulation & Abolition) Act, 1970 (CLRA) provisions:

• Definition & types of labour 
• Why contract labour? 
• Who is Principal Employer (PE)? 
• Duties & responsibilities of Principal Employer 
• Responsibility & Liability of Principal Employer in respect to wages, PF, ESI, welfare etc to Contract Labour. 
• Essentials for contractor to supply manpower 
• Central Advisory Contract Labour Board (CACLB) 
• Prohibition of Contract Labour 
• Forms and terms and conditions of license 
• Amendment of License 
• Important case laws on Contract Labour Act 
• Annual returns 
• Tips on points to be incorporated in terms of contract with Contractor
• Different Forms those are used under the Rule. 
• Mandatory compliances under the Act 
• Court’s view on Contract Labour 
• Precautions for Principal Employer while engaging Contract Labour

Key take away:

• To be aware of Responsibilities of Principal Employer helps maintaining cordial relations with work force. 
• How to handle the proceedings before CACLB? How to deal with the situation on abolition of contract labour? 
• PE will be able to manage all compliances under Act. 
• PE can avoid legal complications by taking all necessary precautions.

Benefits:

• Cordial relation with force will result in more productivity. 
• Easy management of contract labour will reduce financial burden on PE. 
• With precautions the abolition situation can be handled easily resulting into smooth continuation of work