PROJECT ON CONTRACT LABOUR MANAGEMENT

INTRODUCTION

The Contract Labor (Regulation and Abolition) Act, 1970 is a legislation to regulate the
employment of contract labor in certain establishments and to provide for its abolition in
certain circumstances and for matters connected therewith. The object of the Act is to
regulate and to improve the conditions of service of contract labor and not merely to abolish
contract labor itself. It is an Act for the welfare of the laborers whose conditions of service
are not at all satisfactory.

The Statements and Objects and Reasons for this enactment say:
The question of its abolition has been under the consideration of the government for a long
time. In the second five year plan, the Planning Commission made certain
recommendations, namely, undertaking of the studies to ascertain the extent of the
problem of contract labor, progressive abolition of system, and improvement of service
conditions of contract labor where the abolition was not possible.

The Act aims at the abolition of contract labor in respect of such categories as may be
notified by the appropriate government in the light of certain criteria that have been laid
down, and at regulating the service conditions of contract labor where abolition is not
possible. Under the Act, the provision and maintenance of certain basic welfare amenities
for contract labor, like drinking water and first aid facilities, and in certain cases rest rooms
and canteens have been made obligatory. Provisions have also been made to guard against
defaults in the matter of wage payment.

Temporary labor is employable in industry for work of a purely temporary nature or as a

temporary substitute of a permanent worker who is absent. Contract labour is usable only in
activities, which do not form the normal part of an industry’s main functions. Both these
provisions of law are based on the need to prevent adventurous employers who tend to
resort to these types of employment to deny permanency and other fringe benefits of
permanency to temporary and contract labor. Normally, resort to such labour is done in the
areas of house keeping and sanitation, pollution control, security services, canteen etc. and
the contractor gets these assignments done on an ongoing basis, but supervised by the
management. Similar is the case when time bound, penalty oriented jobs are being done by
an employer or when there is unstructured absenteeism deliberately resorted to by
permanent workers. In all these cases, it is seen that the quantum of work done by contract
labor is invariably more than that done by similarly employed permanent workmen.

Labourworks™ is an enterprise wide system which helps organizations in managing the Contract
Labourers while maintaining cordial Industrial Relations by using the unique SPC
MethodologyTM. It is an integrated system with the necessary hardware, software &
consumables. Hence more than five hundred Large & Medium Corporations trust
LabourworksTM for their Enterprise Contract Labour Management....
Contracting is an important process in any enterprise. Contracting helps in improvising the
bottom-line with keeping the liabilities limited. Today, it is almost unavoidable for any Principal
Employer not to avail services of Contract Workers. However due of the Compliance Issues,
Safety & Security issues, Accidents, Periodic medical check-ups etc, the entire contract
management process becomes a complex subject for the departments like HR, Security &
Facilities etc.

Labourworks handles issues with contract workers on three major silos namely …

Safety issues with temporary workers

Background Check:
Incidences such as “Illegal Bangladeshi immigrants working in a major
organizations as temporary workers” Or “Naxalites found taking refuge in factories
in Maharashtra” - turn into a PR nightmare for the affected organizations.
Labourworks™ helps in following few best practices like scanning the ration card or
Voters ID which can help in ensuring the verification of a contract worker.

Proxy Worker:
A different person posing as a bonafied worker is many a times issue with contract
workers. The skilled and un-skilled worker rate can cause a financial loss to an
organization however if the proxy worker meets with an accident in the factory
premise then the entire episode can take an ugly turn. Labourworks™ helps in
controlling the proxy worker issue effectively by photographing every visit.

Debarred workers:
Many a times Contract Laborers are debarred on account of alcoholism, vandalism,
attempt of theft etc. However with a large number of workers it becomes difficult
to ensure that the debarred workers are not entering the premise under a new
contractor. Labourworks™ remembers debarred workers by their finger print
(biometric) and does not generate badges for debarred worker.

Biometric Verification:
Biometric verification is an effective way to verify the identity of an individual.
Labourworks™ is a biometric e enabled system and hence helps in establishing a
safe working environment using biometric signature.

How Labourworks helps in enhancing the Compliance Issues related to

contract workers ?

Labour Law Compliance:

In India Contract Labours are governed by the Labour Law of 1970. According to
this Law the Principal Employer has to maintain certain registers like the Contractor
Register, Workmen register etc. Labourworks™ can help generating the same very
easily.

EPF / ESIS Compliance:

The principal employer is responsible to ensure that the contractor has deposited
the PF/ESIS amount for every contract worker. Using labourworks™ one can
maintain various records for achieving this compliance.

Compliances under other acts:

Labourworks™ helps in adhering to compliances related to Child Labour, Service
Continuity, Continuous working etc. Organizations have to follow many norms
regarding the service continuity and giving a break after a specific period.
Labourworks™ helps in generating reminders and adhering to this compliance.

OSHAS:
Occupational Health & Safety compliance requires records for Periodical Medical
check-ups, Records of PPEs issued, Induction Training etc. Using Labourworks™ the
records for this compliance can be maintained.

How Labourworks™ helps in enhancing the productivity related to contract

workers ?

Contractor Bills Verification:

Using Labourworks the exact time of entry and exit is recorded, using this data the
contractor bills can be verified. Some of our customers have experienced around 3
 to 5 % reduction in the contractor bills after implementing Labourworks™.

OT Claim verification:
Labourworks™ follows a system of authorizing the OT before OT starts, hence only
approved OT Can be claimed.

Performance Metrics:
Labourworks™ helps in establishing the benchmark for production vs No of labours
deployed. Various MIS reports like the Department-wise Shift-wise workers etc.
can be automatically sent for management review.

Labourworks™ Enterprise version Architecture

Highlights of Labour Works™

- Simple card generation system

- Details like site, blood group, photographs can be incorporated on the
card
- Color bands for type of labors
- Valid up-to date is prominently displayed on the badge
- Attendance using barcode or finger scanning
- Shift logic
- Over time, double shift logics
- Time sheet generation
- Web based Dashboard
- OT Approval
- Manual Entry
- Roaster Management
- Calendar
- Import/Export
- Offline Mode
- Bulk Printing
- Local Language
- Report Mailing
- Powerful safety search