Aditya Gupta
Replied 5 years ago
I suppose prerogative of any company can not supersede the law of nation. Whats in the law is rightfully mine. Does any company allowed to make rule that will supersede the law of state?
Shanti Ranjan Behera
Replied 5 years ago
Yes, you are right.
Do you know the laws/rules and regulations in Free Trade Zones/Export Processing Zones with special reference to Labour Rights/Labour laws.Are they not operating within the territory of India?
I am just giving something to read and reflect.In case you have read just ignore.
Legal issues related to offshore outsourcing to India
Cheap-Labour--More gain, a good bet? Most developed nations in the world, especially the USA has engaged in outsourcing a majority of their industrial and trading contracts, offshore to developing countries like India to ensure benefits of inexpensive labour and cost reductions. This smart theory in the world skyrocketing costs involved in undergoing resources and labour expenses has expanded the competitive foreign market and benefitted the source company in every way. From the list of outsourcing countries that have emerged to fight it out amongst themselves, India reigns the top slot. According to outsourcing provider Intercom India, outsourcing is "a specialized service wherein a responsible provider manages an entire business operation or business function including support, staffing and information technology, to improve business performance and increase shareholder value." It has not only emerged in a particular industry doing some intermittent work but has marked an unimaginable growth in last few decades. This influx of outsourcing business contracts with the availability of highly educated labour, high production gains with having to pay peanuts continues to add to the daunting picture of its unresolved legal issues. A 2010 report stated with the expected growth in the outsourcing business in India from 34% in 2009 to 52% in 2010, the legal issues concerning employment laws, intellectual property laws, data-privacy and bankruptcy, multi-jurisdictional issues and the lack of any specific dispute resolution body, the maze of unanswered and uncontrolled legal issues will suffer complicated litigations. It is an unending loop forming a viscous circle where business contracts are outsourced to offshore companies, which if faces legal issues are handed over to law firms which again in the form of legal process outsourcing is outsourced to the offshore market.
critics of offshore outsourcing discuss subjects like like
(1) potential waiver of privilege;
(2) potential disclosure of sensitive or confidential information;
(3) unauthorized practice of law;
(4) quality control; and
(5) potential conflicts.
Contractual terms of an outsourcing contract, the mandates between an employer-employee and also third party benefits where the main company could be called the ‘outsourcer’, the company to which the work has been outsourced to is the ‘service provider’, are the disputed areas attracting legal concern. Most companies attempt to camouflage their individual identities to evade legal liability and remitting benefits and obligations arising out of the ‘outsourcing contracts’ towards their employees where the court must pierce such corporate veil and pull of the facade to meet justice.
KPO/BPO/LPO all come under the above mentioned category.
Shanti Ranjan Behera
Advocate