Want to know legal aspect about hiring contract term employee
2 months ago
I am running IT Services & software services company. For the same i am planning to hire few contract based employees. My objective is to have highly capable IT services staff but not as a full-time but rather contract based. If our company will have any project work we will give to them based on mutually agreed terms and compensations. So Is it legal to hire that way ? and if Yes, What are the must taken steps for me that i want to know.
A.Dear Client,
When hiring contractual employees, compliance with the Contract Labour (Regulation & Abolition) Act, 1970, and relevant Central/State-specific rules is mandatory. As a principal employer engaging through a third-party agency (Contractor), registration of the establishment with the respective State Labor Commissioners/Labour Enforcement Officer (LEO) under Sec. 7 of the Act is necessary. The contractor must also obtain a license under Section 12. Penalties for violations are outlined in Chapter VI, Section 25 for companies/principal employers and Section 23 for contraventions related to the employment of contract labor. All labor and social security laws apply equally to contractual employees in an establishment.
When hiring contractual employees, compliance with the Contract Labour (Regulation & Abolition) Act, 1970, and relevant Central/State-specific rules is mandatory. As a principal employer engaging through a third-party agency (Contractor), registration of the establishment with the respective State Labor Commissioners/Labour Enforcement Officer (LEO) under Sec. 7 of the Act is necessary. The contractor must also obtain a license under Section 12. Penalties for violations are outlined in Chapter VI, Section 25 for companies/principal employers and Section 23 for contraventions related to the employment of contract labor. All labor and social security laws apply equally to contractual employees in an establishment.
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A.Dear Client,
The hiring of service of the contractual employee basically requires compliance with the mandatory provision of the Contract Labour(Regulation & Abolition) Act, 1970 and Central/State-specific Rules apart from the other labour laws applicable to an establishment. The regulatory authority of this Act is the Labour Commissioners/Labour Enforcement Officer(LEO) of the respective State Govt. Before engaging of contractual employee through a third-party agency(Contractor) in your establishment, being a principal employer you have to register your establishment with the said authorities under Sec.7 of the Act following standing procedures as laid down in the Contract Labour(Regulation & Abolition) Act and the Rules made thereunder. Similarly, the Contractor of the said contractual employees has to obtain a license under Sectopm 12 of the Act from the same authorities following standing procedures as laid down in the Act and the Rules. Chapter VI, Section 25 of the Act deals with the penalties for the offences or violation of the provision of the Act or Rules by the companies/principal employer and Section 23 deals with the penalties for contravention of the provisions of the Act and the Rules prescribed for employment or engagement of contract labour or contractual employees. All the labour laws and social security laws apply at par to contractual employees engaged in an establishment. For further clarification, you may contact the office of the concerned regulatory or controlling authorities, i.e, the Deptt of Labour and Employment of the State Government and the LC/ALC?LEO concerned.
The hiring of service of the contractual employee basically requires compliance with the mandatory provision of the Contract Labour(Regulation & Abolition) Act, 1970 and Central/State-specific Rules apart from the other labour laws applicable to an establishment. The regulatory authority of this Act is the Labour Commissioners/Labour Enforcement Officer(LEO) of the respective State Govt. Before engaging of contractual employee through a third-party agency(Contractor) in your establishment, being a principal employer you have to register your establishment with the said authorities under Sec.7 of the Act following standing procedures as laid down in the Contract Labour(Regulation & Abolition) Act and the Rules made thereunder. Similarly, the Contractor of the said contractual employees has to obtain a license under Sectopm 12 of the Act from the same authorities following standing procedures as laid down in the Act and the Rules. Chapter VI, Section 25 of the Act deals with the penalties for the offences or violation of the provision of the Act or Rules by the companies/principal employer and Section 23 deals with the penalties for contravention of the provisions of the Act and the Rules prescribed for employment or engagement of contract labour or contractual employees. All the labour laws and social security laws apply at par to contractual employees engaged in an establishment. For further clarification, you may contact the office of the concerned regulatory or controlling authorities, i.e, the Deptt of Labour and Employment of the State Government and the LC/ALC?LEO concerned.
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