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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 industrys 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