Jay Ambe Contract Services

Q. Can management challenge the decision of Appropriate Govt. regarding abolition
of jobs?
Ans. Yes! Management can challenge the decision of the Appropriate Govt. regarding
abolition of jobs in High Court through writ.
Q. Should contractor and contract labour be rotated? Why? How often?
Ans. Rotating contract labour and contractor for the same job / activity / service may be
held as unfair labour practice unless there are sound reasons and proper documentation
exists in favour of principal employer as bonafide action.
Q. How to reduce number of contract labour?
Ans. First, by identifying the jobs / activities / service which are regular and perennial in
nature and organization requires constant labour. Secondly replace such contract labour
by regular workmen by the company.
Q. Contract labour demanding permanency – How to handle?
Ans. Ensure that your engagement of contract labour system in the organization is genuine.
All documentation including appointment, supervision and control should be sufficient to
establish that contract is not sham. I suggest to seek expert advice and avail such services
as this is very sensitive issue.
Q. Contract labour demanding similar benefits as permanent employees. Is the claim
legally valid?
Ans. Yes! Their claim may be legally valid as it is already provided in the Act that contract
labour is entitled for equal wage, benefits and facilities doing the same or similar kind of
work as employees of principal employer.
Q. Is Minimum Wages Act applicable to contract labour?
Ans. Yes! Rules framed under Contract Labour Act by Central Govt. as well as State Govts.
carry a condition [central rule 25 (2) (iv)] that rates of wages payable to the workman by the
contractor shall not be less than the rates prescribed under the Minimum Wages Act for
such employment where applicable and where the rates have been fixed