CONTENTS

Chairman Message 01
New Office Bearers 02 CHAIRMAN MESSAGE
Our Activities
Monthly Meetings 03 Dear Members,
Student Counselling 04
AGM 05 Greetings and best wishes.
NIPM Fellowship 05
Award I'm extremely grateful to all of you, for electing
Updates me as Chairman of our historic Chapter. I feel a
Human Resources 06 sense of awe when I remember that doyens of this
Legal 07 profession have occupied this exalted chair. I'm
Technology & HR 11 indeed grateful to all of you. In all humility, I am
accepting this challenging assignment from my illustrious predecessors and
promise you that the great tradition would be continued.

EDITORIAL TEAM We have already drawn the activities for the calendar year and I would like to
M.H. Raja ensure that the programmes will bring professional significance.
K. Ganesan
As HR professionals we need to update our skills and this will be possible
M.S. Balajee
only by organizing periodical workshops, seminars and meetings for the
K.S. Chandru members. We would like to have competent professionals, speakers of high
repute from our field and allied fields.

I am always receptive for any meaningful positive suggestions from members

for cohesive functioning of our chapter. Therefore, your participation in the
Upcoming entire chapter's activities will be highly appreciated. We would like to focus
on increasing our Membership. Hence, I request everyone to support to bring
new active Members for our Chapter.
Events We have started two new initiatives in our Chapter i.e. NIPM-MMA Video
NATCON @ Workshop and Joint Certificate Course with MMA in HR. We seek your
suggestions for the Certificate course too.
PUNE on
I would also like to record my sincere gratitude to the outgoing Executive
28 & 29 Committee for their excellent work they have done.

September I look forward to your cooperation and support in making our Chapter more
vibrant.
2018
“MANAGING I once again, convey my hearty greetings to everyone of you.
FUTURE OF Warm Regards,
WORK & WORK M.H. Raja
PLACE” Chairman, Madras Chapter

https://www.natcon2018.com/

NIPM National Headquarter: https://www.nipm.in/ | Madras Chapter: https://www.nipmmadras.com/

 02
New Office Bearers 2018-2020

M.H. Raja Adhilakshmi K.M. Ramalingam K. Ganesan M.S. Balajee

Chairman Logamurthy Vice – Chairman Hony. Secretary Hony. Treasurer
Vice – Chairman

Executive Committee Members

K.S. Chandru A. Edward John N. Prasanna K. Ramesh Kumar

Bosco Venkatesh

Permanent Invitees (Ex – Chairman)

T.M. Jawaharlal Dr.A. Anantharaman N. Kamala Kannan K. Soundarraj M. Rajamani

Past Regional Past National Past Regional
Vice President (SR) Vice President Vice President (SR)

T.V. Subba Rao Dev Kumar Bala T. Krishnamoorthy K. Manickam R. Narasimha Kannan

S. Rajappan

Office Staff

N. Ethirajan M. Nizar Ahamed

Manager Staff

Visit for more information: https://www.nipmmadras.com

 03
OUR ACTIVITIES 3
Monthly Members Meeting March 2018

NIPM Foundation Day 15/03/2018 "Women of Millennium" by Hema Mani Director - HR Lennox India Technology
Center, Ms. Meghna Bhatt, Sr. General Manager-MDC, Murugappa Group, Mr. Muthu Kumar Thanu, CHRO TAFE,
Ms. Shobhana P. Ravi,Chief - IT, Innovation & Learning Officer Tractors and Farm Equipment Ltd., Ms. Sandhya,
Sr. Manager - HR TCS-Chennai. Mr. Muthu Kumar Thanu received memento from Mr. M.H. Raja, Hony. Secretary.

Senior Members Felicitated

Mr. N. Kamala Kannan Mr. K. Soundarraj

Mr. A. Aravamudhan Dr. A. Anantharaman

Mr. T. M. Jawaharlal Mr. D. L. N. Reddy

 04

Monthly Members Meeting April 2018

Leadership in Creating a Respectful Workplace on 20/04/2018 by Mr. Srini Srinivasan, Managing Director, Pfizer Healthcare
India Pvt Ltd. Mr. Srini Srinivasan received memento from Mr. S. Deenadayalan, Mr.M.H. Raja, Hony. Secretary and
Mr. S. Rajappan, Chairman.

Monthly Members Meeting May 2018

NETAP - National Employability through Apprenticeship Program on 17/05/2018 by Ms. Girija, General Manager, Teamlease
Skills University. Ms. Girija received memento from Mr. S. Rajappan, Chairman and Mr. M.H. Raja, Hony. Secretary
Monthly Members Meeting June 2018

"Hurdles of HR" on 30/06/2018 by Dr. B. Madhavan, Senior HR Professional. Dr. B. Madhavan received memento from
Mr. K.S. Chandru, EC Member and Mr. M.S. Balajee, Hony. Treasurer

Student Counselling

Student counselling –Mr. N.C. Balachandran and Mr. Ramesh Srinivasan - 31/03/2018 and 7/4/2018

Members who have not paid their subscription for the year 2018-2019 are requested to remit to our
headquarters under advice to Madras chapter.
 05
Monthly video workshop jointly with Madras Management Association
March 2018
Discussion on “Skills of Assertiveness” by Mr. A. Aravamudhan, Senior HR Professional on 21/03/2018.

April 2018
Discussion on "Team work" by Dr.M. Ramakrishnan, Vice President-HR, Loyal Textiles on 24/04/2018.
May 2018
Discussion on "Appraisal Interview" by Mr. S. Suresh, General Manager-HR, Regen Powertech Pvt Ltd on22/05/2018.
June 2018
Discussion on "Motivating the Team" by Mr. V. Chitranath, Senior HR Professional on 19/06/2018.

Annual General Body Meeting 2018

AGM of our chapter held on 28/06/2018, Mr. M.H. Raja, Hony. Secretary, Mr. S. Rajappan, Chairman, Mr. D.L.N. Reddy,
Hony. Treasurer

Announcing of Results for New Office Bearers 2018-2020

Announcing of results by Mr. T.M. Jawaharlal, Chief Returning Officer

NIPM Fellowship Award

NIPM fellowship award conferred on Mr. Dev Kumar Bala during NATCON 2017 by our NIPM National President
Mr. Somesh Dasgupta on 15/09/2017 at chennai
 06

Updates | Human Resources

Decide your career by choice; not by chance
Ramesh Srinivasan, Consultant, Aim & Succeed

In today’s world of choices, we choose everything – from salt to software. We spend a lot
of time to analyse the options available and choose the best fit according to our liking. Are we investing
the same amount of time and energy to weigh the pros and cons and zero in on an important aspect of our
life – i.e., career that best suits us and give us enjoyment?

This conundrum holds good for both students who aspire for a meaty career to take-off as well as working
professionals who make career choices midway. From the employers’ angle, in order to win the talent war,
organisations tend to select candidates based on the partial picture available to them – i.e., eligibility
criteria. The other important aspect of selection – i.e., suitability of the candidate is often given a go-by or
is not given due importance that it deserves.

Eligibility factors are those that are already accrued by the candidate in terms of his / her educational
qualifications, technical skills, certifications, trainings undergone, work experience, etc. Does this mean
that a person who has all the above work requirement will enjoy working with your organization and
perform to the optimum to meet your business goals?

Suitability factors like genetic traits, behavioural competencies required for the job, interpersonal skills of
the candidate, task preference of the candidate, interests, environment preference, career expectations of
the candidate, fit with the supervisor, passion, etc., which will decide the enjoyment level of the candidate
to work with your organization are not measured scientifically. At best, organizations do an assessment of
personality alone and try to fit the candidate to the job requirement. Unless all the suitability factors as
stated above are measured based on the job requirement, selecting the right candidate and retaining him /
her will continue to be a challenge.

This holds good for students as well. Mostly, students land up in a career based on the various external
factors like parental guidance, peer pressure and the urge to get through the campus recruitment. These
aspects force most of the students (barring exceptions) to take up any job offer that come in their way
thereby totally ignoring their work preferences, interests, environment preferences, career expectations,
behavioural competencies, etc., and find themselves in the wrong career after a couple of years. To bridge
this mismatch, a few educational institutions started laying emphasis on providing objective inputs to their
students to enable them to choose right career.

As Steve Jobs puts it “Your work is going to fill a large part of your life and the only way to be truly
satisfied is to do what you believe is great work. And the only way to do great work is to love what you do.
If you haven't found it yet, keep looking. Don't settle.”

A. Mahalingam
WARM Bino Mathew Jose

WELCOME T.S. Venkatesh

P.V. Vasanthakumar
TO OUR NEW V.S. Sabareesh

LIFE MEMBERS M.C. Rathnaker

M. Krishnan

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Updates | Legal
Madras High Court Judgement on HATSUN case
ORDER
The summons to appear in person under Section 7A of the
Employees' Provident Fund and Miscellaneous Provisions
Act, 1952 [for brevity "EPF&MP Act"]issued by the
Competent Authority to the writ petitioner in proceedings
dated 21.05.2012 is under challenge in this writ petition.
2. The writ petitioner is an establishment covered under the
Employees' Provident Funds and Miscellaneous Provisions
Act, 1952. The writ petitioner is regularly paying the
contribution in respect of all its eligible employees. As
Understood, by the writ petitioner, all along, in term of Para
29 of EPF scheme, contribution is liable to paid only on
Basic Pay, Dearness Allowance, cash value of Food
Concessions and Retaining Allowances, if any. The petitioner
has been paying various other allowances like, Conveyance
Allowance, Special Allowance, Adhoc Allowance, Chilling
Allowance, Stipend, LTA, Medical, Dress Reimbursement,
Cold Room Shift Allowance, Attendance Incentive and
Meals Allowances part from Basic Pay.
3. However, the writ petitioner was paying the contribution
on basic pay excluding allowances as they were not covered
under Section 2(b) of the EPF&MP Act which was duly
accepted by the Respondent all these years.
4. However, the dispute arose in respect of payment of
contribution in relation to all other allowances paid by the
writ petitioner to its employees. The matter is now sub-judice
before the Supreme Court and an interim order passed by the
Hon'ble Supreme Court is enclosed in Page No.12 of the
typed set of papers filed along with the writ petitions. In para
4 of the interim order passed by the Hon'ble Supreme Court
is extracted hereunder:
"4.By order dated 13th July 2012, another bench of this
Court has granted stay of the impugned order by directing
the petitioners to deposit 60% of the amount demanded after
getting credit to the amount already paid. We are informed
that the amount has been deposited with the Provident Fund
office concerned.
6. We quite see the merit of the submission. Hence, though we
grant leave in these special leave petitions, let all these
appeals be listed along with Civil Appeal No.6221 of 2011
for final hearing in the second week of August, 2013. In the
meanwhile the petitioners will join two of their employees to
represent the employees, and they will be served in the
meanwhile. No separate formal order in this regard is
required. All the parties are expected to complete the
pleadings in the meanwhile.
7. Pending disposal of the present appeals, the interim order
granted by this Court earlier will continue to operate. We,
however, add that the Provident Fund Commissioner may
proceed to make the assessment but no demand will be raised
thereon."
5. The learned Senior Counsel appearing on behalf of the writ
petitioner cited the order passed in M/s.TVS Logistics
Services Ltd. Vs. The Regional Provident Fund
Commissioner-I dated 05.03.2014 in W.P.No.6856 of 2014
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07
and the Learned Judge relying upon the interim order granted
by the Hon'ble Supreme Court of India concluded that the
competent authorities may be permitted to conclude the
proceedings under Section 7A of the EPF&MP Act and arrive
the quantum and raise the demand based on the Basic Wages
and not by including the disputed allowances. Para 4, 5, 6, 7
and 8 of the order is extracted hereunder:
"4.In this regard, the respondent has issued a notice for
enquiry to appear as per the proceedings of the Regional
Provident Fund Commissioner-I, under Section 7(A) of the
EPF Act. While so, the petitioner has come up with this
petition seeking to keep the enquiry in abeyance till such time
of pronouncement of the judgment by the Hon'ble Supreme
Court on the issue. What are pending before the Hon'ble
Supreme Court are by way of Special Leave Petition (Civil)
in SLP (C) No.8781-8782/12. They were taken up to Hon'ble
Supreme Court by one M/s.SuryaRoshini Limited. In the
above matters, similar issued came up before the High Court
of Madhya Pradesh. The High Court Madhya Pradesh took
the view that the above stated allowances could be included
into the basic wages for the purpose of payment of EPF
contribution.
Challenging the said findings of the High Court of Madhya
Pradesh. High Court, the above SLPs have been filed. In the
said SLPs, the Hon'ble Supreme Court has issued an interim
order dated 12.04.2013 wherein the Hon'ble Supreme Court
has in paragraph 7 directed as follows:
"7.Pending disposal of the present appeals, the interim order
granted by this court earlier will continue to operate. we,
however, add that the Provident Fund Commissioner may
proceed to make the assessment but no demand will be raised
thereon."
5. Referring to the above interim order passed by the Hon'ble
Supreme Court, which is still in force, the learned counsel for
the petitioner would submit that since precisely the same
issue is involved in the present writ petition also, there may
be a direction issued to the respondent to keep the enquiry in
the abeyance until the final order is passed by the Hon'ble
Supreme Court in the above said Special Leave Petitions.
That is how, the writ petition is before me for admission.
6. I have heard Mr. S. Ravindran, the learned counsel for the
petitioner and Mr. K. Gunasekar, the learned counsel taking
notice for the respondent. By consent, the writ petition itself
is taken up for final disposal and the same is being disposed
of by this order.
7. As I have already pointed out, the only issue which needs
to be resolved in this matter is as to whether the allowances
enumerated herein above which are paid to the employees
shall be included in the basic wages for the purpose of
payment of EPF contribution. There are judgments taking
conflicting views. So far as this court is concerned, in a batch
of writ petitions in W.P.no.15823 of 2010, etc, by order dated
07.06.2011, the Hon'ble Mr. Justice K.Chandru has held that
these allowances should be included into basic wages. As
against the same, an appeal has been filed in W.A.No.1087 of
2011 wherein, a Division Bench of this Court has granted an
interim order of stay of the said order [vide order dated
11.07.2011]. Subsequently, a number of interim orders have

been passed by the learned single judges in a similar fashion.
8. In my considered opinion, the above issue now needs to be
resolved by the Hon'ble Supreme Court. While granting
interim order of stay, the Hon'ble Supreme Court has,
however, permitted the Provident Fund Organisation to
proceed with the assessment and to pass a final order.
However, the Hon'ble Supreme Court has directed that there
shall be no demand raised based on such assessment. In the
case on hand also, in my considered opinion, the respondents
may be permitted to go ahead with the assessment, but, as
directed by the Hon'ble Supreme Court, there shall be no
demand on such assessment until final order is passed by the
Hon'ble Supreme Court in SLP (C) No.8781-8782/12.
However, it is made clear that this order will not in any
manner preclude the respondents from making demand based
on the basic wages not including the above allowances.
6. What is challenged in the writ petition is only a summon
issued to the writ petitioner to appear for an enquiry. It is
duty mandatory on the part of the writ petitioner to appear
before the authorities and defend their cases in accordance
with the procedures as contemplated under the Act and Rules.
Contrarily, they have moved this writ petition challenging the
very notice issued by the competent authorities and therefore,
this writ petition is not maintainable and should be rejected in
limine.
7. The learned counsel for the respondents further states that
the Supreme Court has not granted stay in respect of enquiry
and the demand. Therefore, the competent authorities must be
permitted to exercise their power provided under the Act. The
Statutory powers conferred under the Act cannot be taken
away at the stage of conducting enquiry and in the event of
preventing the competent authority from exercising such
powers and then the very purpose and object of the welfare
legislation of the Provident Fund will be defeated. What is
disputed before the Hon'ble Supreme Court is that certain
allowances can be included for the purpose of determining
the subscription to be paid by the employer. It is the one area
where the quantum of contributions to be arrived. However,
the same will not preclude the authority from determining the
contributions to be paid otherwise in accordance with the
provisions of the Act and Rules. Therefore, total prohibition
is impermissible, that will hamper the entire proceedings and
also will defeat the very object of the Act.
8. Considering the arguments as advanced by the learned
Senior Counsel for the writ petitioner and the learned counsel
for the respondent, this court is of an opinion that the present
writ petition is moved challenging the summons issued by the
competent authority to appear in person for the purpose of
defending the case of the writ petitioner. Thus, the
proceedings are preliminary in nature and the authorities
must be allowed to conduct the enquiry in all respects in
accordance with the procedures as contemplated and by
providing opportunity to the writ petitioner to defend their
case. The process of enquiry cannot be stalled and in such an
event it would be difficult for the authority to assess the
quantum of contributions to be paid by the employer after a
lapse of many years.
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08
9. This court is of an opinion that no writ proceedings can be
entertained against such notice issued for the purpose of
participating in the enquiry proceedings in a routine manner.
Judicial review in respect of such notices are certainly
limited. A writ petition can be entertained against a show
cause notice or a summons to appear in person for the
purpose of submitting an explanation can be entertained if the
same is issued for having no jurisdiction or by incompetency
or an allegation of malafide is raised or if the same is in
violation of the statutory rules in force. Even, in the case of,
raising the plea of malafides, the said person has to be
impleaded as a party in his personal capacity. In the absence
of these grounds, no writ petition can be entertained by this
Court, under Article 226 of the Constitution of India.
10. In the absence of any one of these legal grounds the
authorities competent must be allowed to proceed with the
enquiry and conclude the same in all respects by providing
opportunity to the parties concerned. It is a quasi judicial
function. The competent authorities under the provisions of
the Act are functioning as quasi judicial authorities and
therefore, they have to conduct the enquiry a fair and
reasonable manner by following the procedures as
contemplated. This court is of an opinion that the institution
responsibilities are to be maintained in all circumstances. The
High Court cannot reserve the powers of the competent
authorities then and there so as to paralyze the quasi judicial
functions of the competent authorities under the Act. Once
the proceedings are initiated intermediate interferences are to
be certainly not preferable and the authorities who initiated
the proceedings must be allowed to conclude the same in all
respects and if certain legal grounds are raised only an
acceptable ground is raised then alone the writ jurisdiction
can be invoked. It is not as if High Court in a routine manner
quasi judicial functions of the authorities thereby causing
inconvenience in respect of recovery of the contributions
from the employers which all are the welfare scheme to save
the interest of the workmen in larger interest.
11. Admittedly, the challenge in the present writ petition is
the summons issued to the writ petitioner to appear in person
for the purpose of submissions of their documents and
records enabling the competent authorities to conduct enquiry
and arrive a conclusion in respect of all the contributions to
be made. However, in view of the pendency of the writ
petition the exercise is not done for the past three years.
12. Under these circumstances, this court is of the opinion
that the writ petitioner is at liberty to appear before the
competent authorities as per the notice issued to them and
place their records and documents and their statements so as
to defend their case in accordance with law. The respondents
are also at liberty to proceed with the enquiry proceedings
conclude the same in all respects and pass orders.
13. However, it is made it clear that the authorities are bound
to follow the Act and Rules scrupulously while proceeding
with further in all these matters. It is made clear that in
respect of the disputed allowances further action based on the
demand need not be taken.
14. With these observations, the writ petition stands
dismissed. However, there is no order as to costs.
Consequently, connected miscellaneous petition is closed.
 09

Updates | Legal
BREATHER TO THE MANAGEMENTS ON THE DEMAND
FOR CONTRIBUTION ON VARIOUS ALLOWANCES BY EPFO
S.RAVINDRAN, Senior Advocate, Madras High Court

1. The long drawn litigation on the vexed issue of contribution on various allowances as claimed by EPFO on the interpretation
of “basic wages” in terms of Section 2(b) of the EPF & MP Act is not likely to be resolved in the near future, as during the last
hearing of the pending SLPs, the Supreme Court has sought the views of the Central Government on the issue.

2. Without awaiting for the decision of the Supreme Court which would finally resolve the issue, the EPFO has been demanding
contribution on various allowances from the managements resulting in managements being compelled to either approach the
EPF Tribunal by way of appeal or the Madras High Court by way of writ petition. The appeals before the Tribunals and Writ
Petitions before Madras High Court were languishing for the past 7 or 8 years.

3. In spite of the pendency of the cases before the Tribunal and the Madras High Court, the EPFO was passing orders under
Section 45A of the EPF & MP Act, compelling the managements to pay contribution by resorting to coercive action.

4. By way of breather to the managements, by the judgement dated 12.04.2018 in the case of Hatsun Agro Products Limited Vs
RPFC, Vellore, the Madras High Court has barred the EPFO from demanding contribution on disputed allowances till the final
disposal of the cases pending before the Supreme Court of India.

5. It is expected that in terms of the above judgement, the EPFO would not initiate proceedings against the managements
claiming contribution on various allowances and await final decision of the Supreme Court on the interpretation of “basic wage”
in terms of Section 2(b) of the EPF & MP Act

WAKE UP CALL TO EMPLOYERS ENGAGING / EXPLOITING

CONTRACT LABOUR
S.RAVINDRAN, Senior Advocate, Madras High Court

1. Prior to the enactment of Contract Labour (Regulation and Abolition) Act, 1970, the Courts uniformly condemned the practice
of employers engaging contract labour in their establishments. It was termed as sophisticated engagement of bonded labour and
an exploitation of unorganised work force.

2. Contract Labour (Regulation and Abolition) Act was brought in to stop this exploitation and regulate the engagement of
contract labour. Thus, the employers were allowed to engage contract labour in terms of the provisions of the Contract Labour
(Regulation and Abolition) Act and service conditions of contract workmen were regulated.

3. Since the employers extensively engaged contract labour in perennial nature of work, the Supreme Court rendered certain
decisions on the absorption of contract labour in the services of the management.

4. In the year 2001, in the case of Steel Authority of India Ltd [2001 (2) LLJ 1087], the Constitution Bench of Supreme Court
clarified that there was no scope for Writ Courts to order regularisation of contract workmen in the employment of the principle
employer, in spite of non-compliance of the provisions of the Act by the employer / contractor. The Supreme Court however
clarified that in an industrial dispute, the Labour Court / Tribunal on appreciation on evidence, finding that the contract labour
system was a sham one, it could declare that the contract workmen where indeed employees of the principle employer.

5. Subsequently the Labour Court / Tribunals have rendered decisions on appreciation on evidence, as to whether the
engagement of contract labour was sham or not. These decisions have also been considered by the High Courts and Supreme
Court.

6. Now in landmark judgment, in a writ proceeding and on undisputed facts, the Supreme Court in the case of Chennai Port Trust
vs The Chennai Port Trust Industrial Employees Canteen Workers Welfare Association and Others (2018 LLR 612) has held that
if the principle employer was really controlling the contract workmen, the said contract workmen to be treated as regular
employees of the management.

7. The Supreme Court confirmed the decision of the Madras High Court, holding that contract workmen were the employees of
the management on the following undisputed facts:
a) The fact that the establishment is kept open during the entire 24 hours with employees working in several shifts is not denied.

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 10
Thereby, the necessity of the workmen to have their food inside the factory itself is confirmed and that the canteen is mainly
intended only for the workers.
b) The fact that the Rules framed by the Society for running the canteen shall be subject to the approval of the Chairman is not
denied. This proves that the ultimate control of the administration of the canteen is with the Port Trust.
c) It is only the workers belonging to the Port Trust who are eligible to become members of the Society and not others.
d) It is only the nominee of the Port Trust who can act as the Chairman of the Co-operative Society.
e) The Port Trust administration has the right to audit the accounts of the canteen.
f) Electricity and water are supplied by the Port Trust free of charge. The premise is also held by the Society rent free.
g) As per bye-law 15, the fourth respondent Society, the President as well as four other contractors shall be nominated by the
Registrar only in consultation with the Chairman of the Chennai Port Trust.
h) The Port Trust provides cost of the staff employed by the canteen, maintains the building, reimburses 100% of the fuel costs
and all the benefits to the canteen employees.
i) The prices of the food stuff are very cheap and the food is carried in trickles
to the workers in the Marshalling Yard, ONGC Pipeline, Oil Dock, Diesel Loco and such other places where a canteen cannot
be established and specifically intended only for the workers.
j) The Executive Engineer (Mechanical) of the Port Trust has been nominated as the President of the canteen and the entire
canteen affairs are handled and controlled by the Chief Mechanical Engineer of the Port Trust.
k) The financial matters are controlled by the Financial Adviser and Chief Accounts Officer of the Port Trust.
l) The President of the fourth respondent controls all policy matters concerning the canteen.
m) It is a matter of common knowledge that at least as far as Chennai Port Trust is concerned, it is located in a place that the
nearest restaurant or canteen would be at least two to three kilometres away from the entrance of the Port Trust. Therefore, the
canteen is a must not only for employees, but also for the entire staff at various levels and also visitors having official and
commercial dealings with the Port Trust. The Port Trust itself is a very large and sprawling area from one end to the other.
Therefore, the canteen is an indispensable necessity to the Port Trust.

8. While rendering the above judgment, the Supreme Court referred to its earlier judgement in the case of Indian Petrochemicals
Corporations Ltd and Anr. Vs Shramiksena & others [1999 (2) LLJ 696] where in the following facts where held to be decisive
in favour of the contract workmen:
a) The canteen has been there since the inception of the appellant's factory.
b) The workmen have been employed for long years and despite a change of contractors, the workers have continued to be
employed in the canteen.
c) The premises, furniture, fixture, fuel, electricity, utensils etc. have been provided for by the appellant.
d) The wages of the canteen workers have to be reimbursed by the appellant.
e) The supervision and control on the canteen is exercised by the appellant through its authorised officer, as can be seen from the
various clauses of the contract between the appellant and the contractor.
f) The contractor is nothing but an agent or a manager of the appellant, who works completely under the supervision, control and
directions of the appellant.
g) The workmen have the protection of continuous employment in the establishment.

9. It should be appreciated that the employer’s legal right to engage contract labour should not lead to exploitation of contract
labour. A well documented contract labour system is not sufficient. The contact labour should be genuinely engaged under the
employment of the contractor, including its supervision and control by him. The management controlling the contract labour
behind the screen would expose it and leading to the contract being held to be sham.

10. The Employers should take note of the above judgment of the Supreme Court and ensure engagement of contract labour in a
genuine and transparent manner avoiding the charge of exploitation of contract labour.

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 11

Updates | Technology & HR - Part 2

S. Bhanu Kumar, Director – Technology, WinVinaya InfoSystems

We saw in the last Bouquet how Technology can aid HR in making Board Room decisions. Even today, we
hear statements around “HR will be dead in 2020”. However, the HR fraternity knows that HR cannot die. It’s the nerve center
of any organization. HR needs to play a more strategic role and ensure these align with the business strategies of the organization
and add value.

What we propose to discuss in this issue is extend on the tip of the iceberg message that was made in the earlier edition and go
slightly deeper and understand how Industry 4.0 and digitization enables us to make “Informed Decisions” and will see some HR
tools that are available for various facets of HR. The tools listed here are those that are recognized in the industry and known to
the author but are definitely not a recommendation.

Change is the only constant factor. Industry 4.0 has enabled Interoperability, Transparency in information, Technical Assistance
and decentralized decision making. IT in an organization is no longer in the driver seat for technical decisions but is a
collaborator and business takes the lead in decisions. The individual’s career path is no longer linear but has become little more
complicated with options for one to look for opportunity, develop skill and take on the role – a finance executive can move into
technical role and become a FICO Consultant in SAP. With changes all around, HR function has also evolved. Its no longer one
that manages Labor relations but has moved beyond into Compensation, Learning & Development, Performance management
and now into Talent Analytics & Strategic HR Planning.

The expectation of HR is to make an employee fall in love with his job and have him sustain that love over a career. To achieve
this, one has to understand the employees Performance, Family, Sentiment / Mood, Capability, Needs / Wants, Mindset and so
on. Like a 360 degree feedback this is the stage of Employee 360 degree for HR! HR now is also the Business Partner.

Technology plays a vital role in enabling HR to meet expectations. The data available thanks to the interoperability needs to be
converted to intelligence to better perform the role. The impacts of this digitization in HR are:

 HR Departments are taking ownership of IT Systems to achieve business outcomes and drive organizational change. E.g. HR
owns implementation of HRMS be it on premise or SAAS solution and IT plays a support role.
 Digitization decentralizes HR activities to users and embeds them in the business. E.g. Business takes the lead and uses HR
to facilitate activities and enables HR to become a partner to the business.
 HR knows the business – they can mine employee data (within and external to organization) for insights to facilitate better
positioning of messages and enable predictions. Facilitates better employee engagement and productivity
 HR focuses on strategy and is involved in board room decisions. HR being the owner of data, with support of technology
builds the knowledge required to support decisions and presents the same in boardroom to facilitate better informed
decisions.

 With the analytics on the data consumed, HR becomes the focal in any value additions within the organization right from
introducing cost cutting measures to implementing newer employee focused policies.

Thus as Ulrich envisaged, HR is now a Strategic partner by playing a vital role in setting strategic direction, a Change Agent in
effecting transformation and change, an Employee Champion in motivating and improving competency of an employee and an
Administrative expert in process optimization and efficiency.

Partnering with Technology the HR landscape has evolved. There are multiple disruptive applications that could aid HR. To
name a few (these are just a list of tools but not recommendations) with respect to skill / talent:

 Taleo, Jobvite, iCIMS, SuccessFactors, GreenHouse etc are tools that assist in Skill Acquisition related activities
 Skillsoft, MOOC, Udemy, Coursera, LinkedIn, KhanAcademy etc are tools that assist in skill enhancement. Code Combat is
a site that enables one to learn Python and / or Java Script by playing games!

Irrespective of multiple tools and implementation of technology the key is to have this managed effectively. There should be
one single source of truth which should be visible right from the CEO downwards to all employees. Once done, we will have a
single source of truth and we can ask employees to update relevant tools for an accurate and real time status that enables building
a bird’s eye view

Dashboard enables building a bird’s eye view of the organization and enables interactive and intuitive view of the status of
metrics that matter. Extending on this, with the data accuracy and integrity one can start looking at Predictive and Prescriptive
analytics that would enable the organizations to plan better.

Please update your contact details if any changes

 12

https://goo.gl/MWcQYS - Microsoft case study on Modernizing HR was referred to in the earlier article in the last Bouquet too.
This gives a good insight on how Microsoft went about modernizing HR.

Kind Attention Members:

NIPM National Council Biennial election 2018 - 2020

Life members would have received the ballot papers by now. Please cast your vote and
send your ballot papers to our NIPM National office (Kolkata) on or before 17th August
2018.

We welcome your feedback and suggestions

NATIONAL INSTITUTE OF PERSONNEL MANAGEMENT

Madras Chapter
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BOUQUET Published By: M.H. Raja, Chairman, NIPM Madras Chapter