SOME IMORTANT QUESTIONS RELATED TO CONTRACT LABOUR

1. What are the differences between contract labour and outsourcing? Which is better
option and why?

2. Is Contract labour Act applicable when jobs and services are outsourced?

3. What are the non-perennial and non-permanent jobs which can be assigned to
contract labour?

4. Can we have permanent employees and contract labour working side by side on the
same job?

5. What is the best ratio between permanent and contact labour? Can we engage 100%
contract labour?

6. Can we have different wages and other terms for permanent employees and contract
labour doing the same or similar job?

7. Can we transfer casuals/temporaries on the rolls of contractor?

8. Application and implication of P.F., ESI, Bonus, Gratuity and other statutory benefits
to contract labour, casuals etc. and how to ensure compliance?

9. How to ensure submission of PF and ESI returns by the contractor?

10. How to get a new PF code number from PF authorities?

11. Security, Housekeeping, Drivers, Canteen, Horticulture etc. on contract/voucher

payment. Sustainability? Is there any Case laws?

12. Liability of principal employer for injury, illness, disability, death etc.

13. Can and should the employer have a say in the number and selection of contract
labour?

14. Who is to take disciplinary action against contract labour? Under what rules? Are
standing orders applicable to contract labour?

15. Is it necessary and desirable to issue employment card/gate pass/identity card to

contract labour? If so under whose authority/signature? Safeguards?

16. Each contractor engaging less than 20 but together they engage more than 20. Will
the provisions of registration, licensing and other statutory provisions apply?

17. Statutory requirements and precautions in awarding contract for safeguarding

managements interests.
18. If License not renewed but contractor continues to work – legal implications
including permanency?

19. Contractor changing but contract labour not changing – implications, precautions
required?

20. Contract terminated due to unsatisfactory performance of the contractor, contractor

leaves – can contract labour claim permanency? What should employer do?

21. Contract labour terminated through a settlement. Should principal employer be a

party?

22. When contractor runs away leaving his workforce and supervisor, how to manage
work and labour and who is to handle pending conciliation reference?

23. What to do if the contractor refuses to pay the labour?

24. What are the action required to be taken by the management after abolition of
contract labour?

25. Can management challenge the decision of appropriate Govt. regarding abolition of
jobs?

26. Should contractor and contract labour be rotated? Why? How often?

27. How to reduce number of contract labour?

28. Contract labour demanding permanency – How to handle?

29. Contract labour demanding similar benefits as permanent employees. Is the claim
legally valid?

30. Is Pension Scheme also applicable to contract labour?

31. Is Minimum Wages Act applicable to contract labour?

32. What is the liability of Principal Employer in the case of sub-contracting?

33. What are the implications of Supreme Court Judgment in the SAIL case reversing
earlier Air India Judgment?

34. Implications and liabilities of temporary/casual/probationer employees/trainees? Is

there any maximum duration?
35. What is the relevance of 180/240 days & what are the Implication of breaks?