A STUDY ON CONTRACT LABOUR AT IFFCO KANDLA

SIP Project report submitted in partial fulfillment of the requirements for the PGDM Programme

BY NIKITA CHAWLA 2012186 Supervisors: 1. Mr. A.R Ambwani 2. Prof. M.M Fadnavis

Institute of Management Technology, Nagpur 2012-2014

PREFACE
Management student has to apply his theoretical knowledge in the practical field and compare the results with the classroom learning. Industrial training for a management student is the first stage towards the industrial exposure which tells him what difficulties or challenges he may face when he will enter in the corporate world. As per syllabus prescribed by the INSTITUTE OF MANAGEMENT AND TECNOLOGY, it is compulsory for every student to undergo 6 to 8 weeks of industrial training at some renowned organization. I have taken my industrial training at IFFCO Kandla - Unit. This project majorly covers the P&A Department of IFFCO- Kandla Unit and also contains the analysis of the data collected on employee engagement.

ACKNOWLEDGEMENT
Summer internship has long been an indispensable part of our curriculum of PGDM programme. Between the first and second year, this is an ideal way to get exposure to the real business world and learn about an industry. I have done my summer internship project at IFFCO- Kandla , for 6 weeks from 1st May to 11th June, 2013. My sincerest thanks and respect to Mr. A.R Ambwani ( Dy. General Manager) for the immense help and guidance. I am indeed very thankful to them for their unending support right from the inspection of this project. They continuously shared their precious time and provided me right guidance at every stage. I am grateful to Prof. M.M Fadnavis, Professor at Institute of Management Technology, Nagpur for helping me to solve the queries and difficulties related to my internship project. His support and encouragement has a lot to do with the completion of this Project . I am indebted to all employees of P& A department of IFFCO- Kandla, who directly or indirectly helped me in making my project a success. I greatly acknowledge the contribution of all.

Nikita Chawla

TABLE OF CONTENTS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Introduction of the Industry Human resource section at IFFCO Objective of Study on Contract labour Research Methodology Introduction of contract labour Contract labour at IFFCO Kandla Engagement process of Contract labour List of forms Details of documentation under Contract Labour Act,1970 Obligations of principal Employer Obligation of the Contractors Welfare and health of Contract labours Administration of Contract labours Precautions taken while engaging Contract labour Limitation Recommendations Bibliography/References 2 8 17 17 18 21 25 26 27 32 33 35 36 37 37 37 38

Executive Summary
To ensure continuing progress to develop & transfer the best technologies & to keep pace with the largest development in the world of agriculture INDIAN FARMERS FERTILIZERS COOPERATIVE LIMITED (IFFCO) was established on 3rd November 1967 as a multi-unit cooperatives organization. In nearly three decades of successful existence, the society has blossomed into a premier organization in the capital intensive fertilizer industry in India. IFFCO is one of the pioneer organizations with cooperative sector with Broad Objective of augmenting fertilizer production, ensuring fertilizer availability at the farmers door step, strengthening cooperative fertilizer distribution system & educating, training & guiding the farmers for improving the agricultural productivity.

IFFCO has emerged as the largest producer & marketer of fertilizer in the country with five operating units located at kandla & kalol in Gujarat, Phulpur & Aonla in Bareilly in U.P & Paradeep in Orissa.

IFFCO is a leading producer of fertilizer in the country. IFFCO has built its structure based on four broad objectives dividend initially by its founders. These are: 1) 2) 3) 4) Production of quality chemical fertilizer Urea, NPK Complex & DAP. Service to the farming community. Making fertilizer available closely to community & Strengthening cooperatives in order to enable them withstand competition.

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INTRODUCTION OF IFFCO

Pride of Cooperatives Indian Farmers Fertilizers Cooperative Limited, popularly known as IFFCO, emerged as the pioneering venture on the horizon of fertilizer production and marketing with the objective of attaining self- sufficiency in food grain production. Born as multi unit cooperative society on 3rd November 1967, with a membership of 57 cooperative societies, IFFCO witnessed a meteoric rise and blossomed into the largest manufacturer and marketer of fertilizers in the country. With an authorized capital of Rs.1000 crore, its membership extends to around 36.000 cooperative societies through which its products are channeled in 29 states and 2 union territories in the country. This multi-state cooperative society commissioned its first two plants at KANDLA and Kalol in Gujarat in 1975 for production of Urea and NPK/DAP, respectively. It expanded its production facilities in 1981 by commissioning two additional streams of phosphatic fertilizers at Kandla and a new urea plant at Phulpur. Another gas based plant was commissioned in 1988 at Aonla, Uttar Pradesh. IFFCO realized its dreams of acquiring an impregnable status of global fertilizers major by expanding its production facilities at Kandla, Kalol, Aonla and Phulpur in quick succession. During the period 1996 to 1999, expanding doubled the installed capacity of all the three ammonia/ urea plants at Aonla, Kalol and Phulpur. The capacity was raised from 16.2 lakh tons to 32.2 lakh tons. The Kandla unit was also expanded and the new plant was commissioned on 5th August 1999. The annual capacity of NPK/DAP was increased from 9 lakh tons to 16 lakh tons of bulk fertilizers or 3.09 lakh tons to 5.61 lakh tons of P2O5 OUTPUT. During the year 2001-02 IFFCO has 55.51 lakh MT of fertilizers comprising of 34.91 lakh MT of urea and 20.60 lakh MT of NPK/DAP and highest ever sales of 5605 lakh MT which comprises of 35.85 MT urea and 20.65 lakh MT NPK/DAP.

COMPANY PROFILE
FERTILIZER INDUSTRY IN INDIA: The fertilizer industry in India consists of three major players: The Government owned

Public Sector Undertakings, Co-operative Societies like IFFCO, KRIBHCO and units from Private Sectors. There are about 33 major producers producing NPK fertilizers in the country at present. The fertilizer industry of India had made constructive use of the fertilizer provided by the Government of India, to ensure that the country achieved
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reasonable self-sufficiency in food grains production. The fertilizer industry has organized itself through Fertilizer Association of India (FCI) to co-ordinate with the Government of India to achieve the macro-economic objectives related to agricultural sectors and to provide other services.

Co - operation refers to an organization of individuals for achieving a common economic objective by mutual help and collective efforts. The word Co - operation has been derived from the Latin word Co-operate which, means to work together, to labor together, to endeavor for some common purpose.

HISTORY OF IFFCO:During mid-sixties the co-operative sector in India was responsible for distribution of 70 % of fertilizers consumed in the country. This sector had adequate infrastructure to distribute fertilizers but had no production facilities of its own and hence dependent on public/ private sectors for supplies. To over come this lacuna and to bridge the demand supply gap in the country, a new cooperative society was conceived to specifically cater to the requirements of farmers. It was a unique venture in which the farmers of the country through their own co-operative societies created this new institution to safeguard their interests. The number of co-operative societies associated with IFFCO has risen from 57 in 1967 to 38,155 at present.

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Farmers dream to have their unique organization that can produce and make them available quality fertilizer at their doorstep was successfully realized with the formation of IFFCO, a pioneer in Indian Cooperative movement on 3rd November, 1967. Beginning with a modest membership of 57 cooperative societies in 1967-68, IFFCO has blossomed into Globes largest fertilizer cooperative with sizable membership Of 37,500 cooperative societies in its fold.

Thus IFFCO has become a cooperative of the farmers, by the farmers and for the farmers. Initially, IFFCO set up its plants at Kalol and Kandla in Gujarat which were commissioned in 1975. Subsequently, it commissioned plant at Phulpur and Aonla in U.P. in the year 1981 and 1988 respectively. IFFCO has acquired a NPK/DAP and Phosphoric Acid facility at Paradeep in Orissa. The marketing of IFFCOs product NPK/DAP/ Urea is channelised through cooperative societies and institutional agencies in over all states and union territories of the country.

IFFCO has notched up a record sale of 81.95 lakh tonne of fertilizer material comprising 50.13 lakh tonne of urea and 31.82 lakh tonne of NPK/DAP, during the year witnessing a growth of 27 % as against 64.64 lakh tonne, the year before. Best ever marketing productivity also sprang to 5566 tonne/head.

3 November 1967: Indian Farmers Fertilizer Cooperative Limited (IFFCO) was set up at the initiative of the farmers. It soon emerged as a role model for cooperatives. IFFCO is registered under the Multi-State Cooperative Societies Act 1984, which was amended in 2002. Beginning with a membership of 57 societies, it has grown to around 40,000 as on 31 March 2008. The initial equity capital of Rs 6 lakh has jumped to Rs 423.93 crore. Indian Farmers Fertilizers Cooperative Limited, popularly known as IFFCO, emerged as pioneering venture on the horizon of fertilizer production and marketing with objective of attaining self-sufficiency in food grain production. Several prestigious awards stand
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testimony to the fact that IFFCO is driven by its values and the dedication of its people. This is an organization that believes in fair play and has always followed transparent and professional practices in corporate governance. Over 40 years ago, the Government and the farming community came together with a single objective: to empower lives. Thus was born IFFCO, the worlds largest Fertilizer cooperative. IFFCOs mission is to enable Indian farmers to prosper through the timely supply of reliable, high quality fertilizers and farm inputs and services in an environmentally sustainable manner and to undertake activities to improve their welfare. This is the success story of an organization that has the vision to grow; it is a story that has been scripted with the best intentions to benefit the farmer and to spread smiles across the nation. Indian Farmers Fertilizer Cooperative Limited (IFFCO) is a multi-state cooperative society engaged in production and distribution of chemical fertilizers. Registered on 3.11.1967, the Society commissioned its first two plants at Kalol and Kandla in Gujarat in 1975 for production of Urea and NPK/DAP, respectively. It expanded its production facilities in 1981 by commissioning two additional streams of phosphatic fertilizers at Kandla and a new urea plant at Phulpur. Another gas-based plant was commissioned in 1988 at Aonla, Uttar Pradesh. In the year 2005, IFFCO took over the Phosphoric Acid, Sulphuric Acid and NPK/DAP plant of M/s Oswals Ltd, Paradeep. IFFCOs production is approximately twelve thousand crore turnover in a year. New project which are going in IFFCO are:-1)Urea phosphate 2) Zinc sulphate

Streams A&B C&D E&F

Year of commissioning 1975 1981 1999

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Impetus to Cooperative Movement Right from the beginning IFFCO has been sparing on efforts to inform & educate the farmers through its dedicated field team at the grassroots level. Its need based education and promotional programmes like crop demonstrations, field days, farmers meetings; seed multiplication, village adoption; crop seminars and lay two plot and block demonstrations for the benefit of farmers. The society has also pressed into service 165 Farmers Service Centers spread over length and breadth of the country for providing technical guidance and making available all vital agro inputs under one roof especially for small and marginal farmers. Special projects on different aspect of Hi-tech agriculture such as drip irrigation, bio-pesticides, bio-fertilizers, use of plastics in agriculture, agriculture implements; watershed management development, microirrigation etc. have also been launched. IFFCOS Kandla Plant IFFCOs Kandla plant is located on the western bank of Kandla creek adjacent to Kandla Port Trust oil Jetties. The plant (Kandla plant) produces NPK/DAP complex phosphate fertilizers of various grades, namely NPK grades 10:26:26, 12:32:16 & DAP 18:46:00 in terms of N:P2O5:K2O. The plant, originally consisting of only 2 streams A&B and related facilities was designed & erected by M/s Dorr Oliver Inc. USA at a cost of Rs. 30 cores with an annual licensed capacity of 1,27,000 MT P2O5. The plant was commissioned on 26th Nov. 1974 and commercial production declared on 1st Jan, 1975. With increased demand for complex fertilizers, the capacity was doubled by addition of two more streams C & D designed & erected by HDO at a cost of Rs. 28.80 crores. Licensed capacity was increased from 1.27.000 MT P2O5 per annum to 2, 60,000 MT P2O5 per annum. The expanded unit was commissioned on 4th June 1981 and the commercial production was started from 6th Sept. 1981. Subsequently due to introduction of production of DAP grade, the total capacity increase to 3.09,000 MT per annum of P2O5. IFFCO went in for expansion of their unit at Kandla in 1996-97. Kandla phase-II NPK/DAP project conceptualized the setting up of two additional E & F streams for manufacture of the same grades of NPK/DAP fertilizers with an annual production capacity of 2,10,700 MTPA thus increasing the total capacity from 3,09,000 MTPA of

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P2O5 to 5,19,700 MTPA of P2O5. The actual cost of the project was Rs. 205.30 crores against a budgeted cost of Rs. 212.20 crores. The main consultant for the NPK/DAP plant was M/s Hindustan Dorr Oliver, Mumbai with the pipe reactor technology obtained from process licensor M/s Grande paroisse, France. The construction of E&F streams was completed 77 days ahead of schedule. The E & F streams were commissioned on 10th June 1999 & 9th July 1999 respectively and the commercial production started from 5th August, 1999. Raw material are :- 1) Potash 2) Urea 3) Ammonia 4) Phosphoric acid 5) Sulpuric acid

Vision To augment the incremental incomes of farmers by helping them to increase their crop productivity through balanced use of energy efficient fertilizers, maintain the environmental health and to make cooperative societies economically & democratically strong for professionalized services to the farming community to ensure an empowered rural India.

Mission To provide to farmers high quality fertilizers in right time and in adequate quantities with an objective to increase crop productivity. To make plants energy efficient and continually review various schemes to conserve energy. Commitment to health, safety, environment and forestry development to enrich the quality of community life. Commitment to social responsibilities for a strong social fabric. To institutionalize core values and create a culture of team building, empowerment and innovation which would help in incremental growth of employees and enable achievement of strategic objectives. Foster a culture of trust, openness and mutual concern to make working a stimulating and challenging experience for stake holders.

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Building a value driven organization with an improved and responsive customer focus. A true commitment to transparency, accountability and integrity in principle and practice. To acquire, assimilate and adopt reliable, efficient and cost effective technologies. Sourcing raw materials for production of phosphates fertilizers at economical cost by entering into Joint Ventures outside India. To ensure growth in core and non-core sectors. A true Cooperative Society committed for fostering cooperative movement in the country.

HUMAN RESOURCE DEPARTMENT

The Most Important assets of the organization are its employees so the management of the human resource is the prime function of management. In this function, the basic responsibility of management is to bring employee and organization on the same platform in order to meet the individual goal as well as the organization goal at the same time. Human productive capacity depends upon his ability to acquire knowledge and put it to economic use. The management of human resource philosophies is the basis on which polices and practices guiding an organizational behavior can be developed and implemented. These are: Accumulation: - means translate into polices and practices designed attract many good candidate very carefully and consistently. Utilization: - individual are generally selected with attention to technical skill, although personal characteristic are still important. Facilitation: - for treating and managing employee in organization is called facilitation. This hold that individual must have technical skill to able to work together enclose reciprocal interaction.

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 Personal Aspect: - are man power planning, recruitment, placement, promotion, transfer, Training and development, remuneration, productivity, incentives and superannuation benefits. etc.. Welfare Aspect: - are working conditions, recreations facilities, medical care, transport, canteen, health and safety etc. Industrial Relation Aspect: - covers, union management relation, collective bargaining, worker participation in management, grievance, disciplinary procedures and settlement of dispute etc.

Human Resources Sections at IFFCO

ADMINISTRATION SECTION Mainly organizations deal with basically three main things man, machine and tools. P&A (Personnel and Administration) Department is dealing with men, their services and towards their devotion to work, legal or statutory obligations as per rules of the organization for all that systems requirement, which is required and dealt with personnel and Administration Department. It has to physically act as an activator in the matter by providing certain amenities like health, cleanliness, transport, communication uniform of the employees etc. Monitoring is required to make an organization effective and efficient by making the full P&A department work efficiently and effectively. How full P&A department is working efficiently is a key relation with, how the employees, vendors, government act as a service department. It is the fulfilling service oriented department for the efficiency and effectiveness of the organization. If not dealt properly gives negative or reverse results. Timely ordering of the different function of the man is the key Administration functioning autonomy if it is called the functioning body of the organization The major sections of Personnel & Administration Department are: Administration Personnel/ Public Relations/ Time Office Industrial Relations/ Contract Labour Estate/ Guest House

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PERSONNEL SECTION Human beings are resources to an organization. Like any other material on economic resources they represent an investment whose development and utilization require managing (i.e. planning, organization, leadership and evaluation). There is a fundamental truth in the clich that People are an organizations most important asset. In every organization, human resources are apivotal variable without which the inanimate assets are worthless. Like cash put into a savings account, human resources can appreciate in value. Therefore, human resources need to be understood to their proper perspective and utilized effectively to achieve the goals of an organization. This requires that human resources must be managed and management implies that work should be effectively completed with and through other people. The management process is made up of four steps embracing the people dimension getting them, preparing them, activating them and keeping them. It is these aspects of human resources, which this volume deals with. The management of human resources is a very complicated and challenging task for these who are entrusted with the successful running of an organization; and this implies considerable knowledge of various aspects of Personnel Management, including that of industrial law, psychology, sociology, administration, etc. The discipline of personnel management has gained importance since professionalism of management is now regarded as a must for the successful running of a business or industrial enterprise. Executive have the moral obligation to the organization they manage and the human resources they employ, which they can fulfill only when they have a background of theoretical and conceptual knowledge of the subject. This presupposes that they should not only have a thorough grounding in the various aspects of handling human resources through proper education and training but should also keep themselves abreast of the changes and trends that take place in their discipline. INDUSTRIAL RELATION SECTION Industrial Relations are concerned with the relationship between management and workers and the role of regulatory mechanism in revolving any industrial dispute. Industrial Relations refers to a dynamic & developing concept which is not limited to the complex of relations between trade unions and management but also refers to the general web of relations normally obtained between employer and employees. Industrial Relations are an integral aspect of social relations arising out of employeremployee interaction in modern industries, the concept of Industrial Relations has been extended to denote the relations of the state with employees and workers and their organization. Thus the concept of IR is given due importance in all organization.

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Industrial Relations in context to IFFCO. In IFFCO Industrial Relations is done by undergoing to following functions Monthly meeting of Joint Management Council, Notice of meeting to be issued/compliance to be taken from concerned section/ minutes of meeting to be prepared and issued / quarterly return to RLC, Abad on workers participation. Maintaining Liaison with labor and other department of state and Central Government Renewal license of Factory, electrical license and license for LPG Providing Legal Assistance in Legal matters by attending various court cases Courts cases are pending before various courts viz. High courts, Industrial Tribunal, Labor court and civil court and Conciliation authorities. Preparing written statements, plaints, rejoinders, etc. in consultation with Advocates and to attend cases in the various courts Dealing with various Disciplinary matters Arranging meeting of IR / Union Management meetings Bipartite / tripartite settlements Memorandum of settlements with Union from time to time Ensuring compliance of statutory requirement by contractors and IFFCO by periodical inspection of records pertaining to several acts Submission of statutory and non statutory returns to Government and H.O

GUEST HOUSE & ESTATE:This section also comes under the purview of the P & A department. This section looks after the guests resting, their facilities, their lodging and boarding, their transportation to the plant and various place related to the plant and their meeting arrangement for the above mentioned meeting with the GM and the other officials from the Head Office. Also Estate is related with the Housing and boarding of the employees of the IFFCO cooperative and this deals with the improvement with the facilities given to the employees according to their grades in their grades in their Designation and thus even though not a big section and does not directly related in the productivity of the plant but indirectly have an effect on the employees performance and their productivity. Hence it has to be seen that the employees are getting the optimum from their plant and their surrounding and thus they can produce the companys production a more efficient manner. Here also there is a duty allotted to the different officials on a routine basis so that their guidance can be obtained and the attainders at the Guest House and Estate can obtain their valuable ideas.

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Time Office:Time office is one of the most important section where attendance of all employees and executives in duty are effectively monitored. It maintains regularly the punching cards, leave records and various other functions through its totally computerized system. There are five shifts in IFFCO Morning shift: 6:00 am to 2:00 pm Second shift: Night shift: General : 2:00 pm to 10:00 pm 10:00 pm to 6:00 am 8:30 am to 5:00 pm

Attendance is one of the most important records of the employees capacity to work regularly. The main work of the time office is to record the exact timing of the entry and exit. This recording of time is done through the punching machine. When the employee punches his card the timing is recorded in the computer, which records the employees Attendance on that particular day. Then print out of the no. of employees present during each shift is taken and recorded in the daily attendance sheet which is filled daily by the time office and sent to the personnel department for the verification of the no. of the employees present in the entire plant. The other function of the time office is to record the attendance of employees as well as keep a record of the overtime taken by the punching staff. If the employee is present for more than 3 days the time office notifies the respective department that the particular employee has been absent and whether they have received any intimation from the employee of his absence. Since malpractices can be done that is the employee punches his card and leaves the premises before time and then returns back to punch his exit time, or it can be that some other person punches for the entry of that particular employee, the time office sends in the attendance sheet to the various departments where the head of that particular departments verifies whether the employee is present or not or whether the head of that particular departments verifies whether the employee is present or not or whether there was a false punching favoring that particular employee.

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Another record that is maintained by the Time Office is the daily report which is send to the Sr. Manager which contains the particular in each shift such as the punching clocks, record of any notice board either through the management or through the union, any occurrence of accidents or any other special occurrence which has taken place in the unit which is signed by the Time Keeper endorsed by the supervision and the welfare offices. Other than this the duty of the time keeper is to write down the statement showing the daily engagement of casual workers in a particular department on that particular day and the total no. of them employed in the general shift so that they are accounted for the daily wages. The timekeeper also fills in the form of the statement showing the total strength of the unit and the percentage of absenteeism of the punching staff below H2 grade. The attendance of the officer grade above H1 grade is maintained in the registers of this respective department. These registers are brought down to the time office and are checked by the supervisors as to how many officers are present on that particular date in order to calculate the percentage of absentees in the whole unit. The time office also keeps even reports of apprentices present. Every month the salary of previous month is paid within the first week of the month. All the reports maintained of employees of their attendance, or time, absenteeism etc are send to the F&A dept. where in the wages and salaries are then calculated accordingly.

If the employ is working on shift basis then he cannot leave the premises until his reliever has joint the duty. If his reliever happens to be on leave he has to continue working in the complete shift on overtime wages. In such case he gets overtime of the whole shift of 8 hours, but if he works overtime when there is a plant shutdown, he will be given overtime for the hours he has worked, not for the entire shift. If the employee works on the national holiday he is given double overtime, while on other holiday he is given only single overtime.

Labour Welfare and Social Security

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INTRODUCTION:- Labour welfare works aims at providing such service facilities and amenities which enables the workers employed in an organization to perform their work in healthy congenial surrounding conductive to good health and high moral.

Labour welfare is a comprehensive term including various services, benefits and facilities offered by the employer. Through such generous fringe benefits the employer makes life worth living for employees. The welfare amenities are extended in additional to normal wages and other economic rewards available to employees as per the legal provisions.

Welfare Facility provided to the employee in IFFCO-kandla.

IFFCO has done a lot for its employees. Beings a cooperative it always believes in sharing its benefits with the employee. Any person would be satisfied of he gets good pay and good facility to live has/her life. If the employee is socially secured then the employee would put in his full potential to carry out his duties and he will feel indebted to the organization and gives in his best. There are two type of welfare facilities provided to the employees in IFFCO.

Statutory facilities. Non-statutory facilities.

Welfare services may broadly e classified into two category: Intramural activities:- which are provided within the establishment such as toilets, rest center, canteen, uniform etc. Excremental activities:- which are undertaken outside the establishment such as family planning, child welfare, co-operative stores credit societies, vocational guidelines, holiday, home leave, travel facilities.

Intramural activities: Drinking water Toilets Washing and bathing facilities Rest shelters

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Uniform and protective clothing Recreation facilities. Canteen.

Extramural activates: Housing Education facilities Maternity benefits Transportation Sport facilities Vocational training Holiday home Social insurance. The welfare board at corporate level consisting of equal representative of the workmen and management, has been planning, supervising, monitoring and evaluating various measure.

Labour welfare work may also be divided into categories. Statutory welfare facilities: IFFCO provides all statutory welfare measures to its employees as per the factory act 1948: Washing Facilities: Facilities for storing and draying clothing Facilities for sitting. Changing rooms. Drinking Water Latrines and urinals. Lightings. Ventilation Medical Faculties Reimbursement of expenses of medical check-up. First-aid appliances and ambulance room. Canteen.

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Noon statutory labour welfare facilities: Township. Schools Educational facilities Ladies club Liveries Staff buses Sport and cultural activities Bonus Welfare fund. Leave provisions.

FIRE AND SAFETY:-

Maintaining and Monitoring safety at work in the plant. Monitoring and control of all the facilities where ever hazards is involved as per fire rules for handling of hazardous chemicals. Regular servicing/monitoring of all fire and safety equipments in and around plant. Conducting and coordinating annual safety audit. Mock drill practice for emergency preparedness. Regular updation of On-site and Offsite emergency plan. Conducting various competition activities to increase awareness programs. Conducting various competition activities to increase awareness of safety.

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A STUDY ON CONTRACT LABOURS

An Act to regulate the employment of contract labour in certain establishments and to provide for its abolition in certain circumstances and for matters connected therewith.

OBJECTIVE OF THE STUDY

The Objective of the Contract Labour Regulation and Abolition Act, 1970 is to prevent exploitation of contract labour and also to introduce better conditions of work. A workman is deemed to be employed as Contract Labour when he is hired in connection with the work of an establishment by or through a Contractor. Contract workmen are indirect employees. Contract Labour differs from Direct Labour in terms of employment relationship with the establishment and method of wage payment. Contract Labour, by and large is not borne on pay roll nor is paid directly. The Contract Workmen are hired, supervised and remunerated by the Contractor, who in turn, is remunerated by the Establishment hiring the services of the Contractor.

RESEARCH METHODOLOGY
The source of collection of data of the project is as follows: PRIMARY DATA: The study complies of the primary data as there was a face to face interaction with the contractors of IFFCO. The interview conducted was unstructured one which is one of the types of interviews and it comes under the Qualitative Interviews. SECONDARY DATA: The collection of secondary data was through the websites of the company, the books and some forms which contains the rules & regulations of the company. For
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the study of the project the data collection as also done through the books of Contract Labour (Regulation & Abolition) Act, 1970. SAMPLING PLAN: The data was almost collected through the Industrial Relations department of Personnel section. AREA OF STUDY: The area of the study was plant of IFFCO at Kandla

INTRODUCTION TO CONTRACT LABOUR

In this age of globalization, the employment structure across the globe has been undergoing changes in all nations. In order to effectively compete in a globalized market, one needs flexibility relating to labour, capital, or bureaucracy; this allows a producer to adapt to the fast changing world and compete effectively. In particular, it is argued that stringent labour regulations not only put domestic producers at a disadvantage but also determine foreign direct investment and eventually impact adversely on investment, output and employment. Over the last two decades, a number of countries have attempted to liberalize their respective labour markets and have also amended their labour laws so as to make them more investment - and employment -friendly a process that has weakened job security and collective bargaining. In Bangladesh, for example, globalization is found to reduce the number of employees working under permanent contracts and to create non traditional employment structures including part time , casual and contract labour In India too we observe an increasing use of casual /contractor other such non informal labour over time. Among different kinds of employment that have been created in various economies to circumvent labour laws, contract labour is becoming one of the prominent forms. If we assume that such a flexible form of employment is indeed necessary in a competitive world, then how do we extend social protection to this section of labour? It has been observed in Bangladesh that with such informalization of labour, social security of workers, in general, have decreased and workers are often terminated without benefits. In India, contract labourers are protected by the Contract Labour Regulation and Abolition Act, 1970. A contract labour is defined in the Act 3 as one who is hired in connection with the work of an establishment by a principal employer who is the firm owner or a manager
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through a contractor. The act makes a number of provisions for the welfare of the contract workers including payment of minimum wage , social security benefits and others. At various points of time Government amended the law with a view to make it more labour friendly. However, such amendments can be of help to the workers only if implementation of the law is ascertained. Definitions. Appropriate Government means In relation to an establishment in respect of which the appropriate government under the Industrial Disputes Act, 1947 (14 of 1947), is the Central Government: In relation to any other establishment, the government of the State in which that the other establishment is situated: A workman shall be deemed to be employed as Contract Labour in or in connection with the work of an establishment when he is hired in connection with such work by or through a contractor with or without the knowledge of the principal employer. Contractor, in relation to an establishment means a person who undertakes to produce a given result for the establishment, other than mere supply of goods or articles of manufacture to such establishment, through contract labour or who supplies contract labour for any work of the establishment and includes a subcontractor: establishment means (i) any office or department of the government or a local authority, or (ii) any place where any industry, trade, business, manufacture or occupation is carried on. Principal employer means(i) in relation to any office or department of the Government or a local authority, the head of that office or department or such other officer as the Government or the local authority, as the case may be, may specified in this behalf. (ii) in a factory, the owner or occupier of the factory and where a person has been named as the manager of the factory under the Factories Act, 1948, the person o named, (iii) in a mine the owner or the agent of the mine and where a person has been named as the manager of the mine, the person so named,

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(iv) in any other establishment, any person responsible for the supervision and control of the establishment. Workman means- any person employed in or in connection with the work of any establishment to do any skilled, semi- skilled or unskilled manual, supervisory, technical or clerical work for hired or reward, whether the terms of employment be express or implied, but does not include any such person(i) who is employed mainly in a managerial or administrative capacity: or who, being employed in a supervisory capacity draws wages exceeding five hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of managerial nature.

(ii)

Who is outworker, that is to say, a person to whom any articles or materials is given out by or on behalf of the principal employer to be made up, cleaned, washed, altered, ornamented, finished, repaired, adapted or otherwise processed for sale for the purposes of the trade or business of the principal employer and the process is to be carried out either in the home of outworker or in some other premises, not being premises under the control and management of the principal employer.

The ADVISORY BOARDS AS PER THE CONTRACT LABOUR ACT, 1970

CENTRAL ADVISORY BOARDS: The central government shall, as soon as may be, constitute a Boardto be calledthe Central Advisory Contract Labour Board to advise the Central Government on such matters arising out of the administration of this Act as may be referred to it and to carry out other functions assigned to it under this Act. (1) The Central Board shall consist of (a) (b) (c) A chairman to be appointed by the Central Government The Chief Labour Commissioner (Central) Such number of members, not exceeding seventeenbut not less than eleven, as the Central Government may nominate to represent that Government, the Railways, the coal industry, the mining industry, the contractors, the workmen and any other interests which, in the opinion of the Central Government, ought to be represented on the central board.

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(2) The number of persons to be appointed as members of each of the categories specified in sub section(2), the term of office and other conditions of service of, the procedure to be followed in the discharge of their functions by, and the manner of filling vacancies among, the members of the Central Board shall be such as may be prescribed: Provided thatthenumber of members nominated to represent the workmen shall not be less than the number of members nominated to represent the principal employers and the contractors.

STATE ADVISORY BOARD: (1) The State Government may constitute a Board to be called the State Advisory Contract Labour Board to advise the state

government on such matters arising out of the administration of this Act as may be referred to it and to carry out other functions assigned to it under this Act. (2) The State Board shall consist of (a) a chairman to be appointed by the State Government (b) thelabour commissioner or in his absence any other officer State Government in that behalf

nominated by the

(c) such number of members, not exceeding eleven but not less than nine, as the state government may nominate to represent that Government, the industry, the contractors, the workmen and any other interests which, in the opinion of State Government, ought to be represented on the State Board. (3) The number of persons to be appointed as members of each of the categories specified in sub- section (2), the term of office and other conditions of service of, the procedure to be followed in the discharge of their functions by, and the manner of filling vacancies among, the members of the State Board shall be such as may be prescribed: Provided that the number of members nominated to represent the workmen shall not be less than the number of members nominated to represent the principal employers and the contractors.

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Contract Labour Work At IFFCO Kandla The contractor at IFFCO kandla are fully responsible for all matters arising out of the performance of the contract and comply at his own expenses with all the laws enactment/ orders/ regulations/ statutory obligations, whatsoever, of the government of India/State govt/ any statutory or non statutory authority .The contractor hereby agrees to indemnify and keep harmless the owner / consultant against all liabilities in this respect. The contractor in IFFCO are fully and exclusively responsible for the work, conduct, supervision and control of all their own personnel and personnel employed by the sub contractor engaged by them and owner / consultant shall in no way be responsible for supervision, control etc. of these personnel. Since the contractor have full and exclusive supervision and control over the contract awarded to him and the people engaged for this purpose, the contractor or his sub contractor, as the case may be, shall be the principal employer under the Contract Labour (Regulation & Abolition) Act. 1970 and the contractor of IFFCO must register himself as such, and the owner/ consultant have no responsibility and liability on this

Advantages and Dis-Advantages: Advantages of Using Temporary Labour

When we use temporary labour we should be getting an employee that has already been screened and interviewed by the temp agency. If we work closely with the same agency they should be able to get a feel for what type of employees we are looking for. This also saves our time having to go through the normal hiring process.

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If we are not satisfied with the employee. Well the solution to that is simple. Ask the Contractor to send out someone else. We are not required to use anyone he sends to us.

There are a couple of other advantages to using a temporary labour. One is the ability to let go the employee when we no longer need them. All we have to do is make a call or give a letter and the Contractor will handle the employee.

The other advantage is the ease with which payroll is handled. Thats because the contractor handles the employees payroll. He deals with all the taxes as well as the benefits the employee might be receiving. All we have to do is pay the bill.

Economic and financial feasibility - the contract Labour are able to do a better job in terms of supervision since they have a fear of loss of job as compared to regular workers.

As such the principal employer has no liability towards the contract labours but his liability is limited to the act of payment of bill raised by the contractor.

Under sec. 16 (1) (c) of contract labour Act if the contract labour appointed by the contractor is more than 100 then it is the duty of contractor to provide Canteen for the Labours.

As the contract Labours are appointed by contractor there will be no chance for Labour Unions.

Dis-Advantages of Using Temporary Labour

As per Sec. 10 of Contract Labour Act. We can not appoint them on machine work but only loading and un-loading work can be given to them. However, being the principal employer, we have to ensure that the contract employees are getting their salary from the contractor in time. It is the responsibility of the principal employer to ensure that EPF/ESI in respect of these workers are remitted by the contractor in time. We have also to ensure that bonus is given to those who are eligible for. Besides, we have to obtain permission from the appropriate authorities for hiring employees through a contractor. (We can recover the sum paid ) Also if the contractor dose not complies with the statutory provisions under sec. 21 regarding payment of wages the Principal employer have to pay the same.
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The downside of hiring temporary employees? The main problem actually comes from what happens when we find an employee wed like to keep. Most temp agencies require their workers to sign a contract. Most are either three or six months in duration. The contract keeps the worker from jumping ship if they are offered a job. This gives the company that is using the employee usually only two choices. One is to buy out the contract. This can often cost the company thousands of rupees. It's how the agency is able to still make its money on the worker. The other option is to keep the worker on until the employees contract runs out. Either way our business will pay a price. Its up to us to decide whether the employee is worth the price.

As the employees are appointed by contractor we have no chance to judge their working ability before appointing them.

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THE ENGAGEMENT PROCESS OF CONTRACT LABOUR AT IFFCO KANDLA

A Material Purchase Requisite (MPR) is raised by the indenter. i. e the department who is in need of labours will raise their request through an MPR and further it is send to the Material Department. The Material department will check the MPR regarding the information and details given in the MPR by the indenter. There is a vendor list category given in the MPR on which the inquiry is issued by the material department for its approval. The approved vendors will then send their quotations to the material department. The material department will then make Quotation Comparison Statement (QCS) of the vendors and then it will be send to the indented department for their recommendations. The indented department , will then recommend for the placement of order to the lowest offer (L1) basis or proprietary offer basis. On that basis the material department will prepare order for the particular vendor. There is either work order or purchase order prepared as per the recommendations of the indentor with the standard terms or conditions for work order or purchase order. If the purchase order is placed and the party which execute the order with the stipulated delivery period than it is seemed that the order is executed or it is closed. In the work order the party works at the site of the indentor or at their own place. The work order is closed after the completion of duration period mentioned in the work order. The duration of the work order can be for six months or twelve months or it can be extended if needed.

REGISTERATION OF THE ESTABLISHMENT

If the principal employer is employing 20 or more workers than it is necessary for him to get registered through FORM No.1which is the form of Application for registration of employing Contract labour. The principal employer has to make the registration within a stipulated period of time to the registering officer (Asst. comm. Of Labour ). If the application for the registration is complete in all respects, the registering officer shall register the establishment and issue to the principal employer of the establishment a certificate of registration containing such particulars as may be prescribed.
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List of Forms to be filled up for various purposes related to Contract Labor

Sr. No 1 2 3 4 5 6 7 8 Description Application for registration of employing contract labor Certificate of registration Register of establishments Application for License Form of Certificate (By principal Employer) Government of Gujarat (Issue of License) Application for renewal of license Application for temporary registration of establishment employing contract labor Temporary certificate of registration Application for temporary license Govt of GJ Office of Licensing officer (Temporary License) Register of particulars of Contractors Register of Workmen employed by Contractor Employment card Service Certificate Muster roll Register of Wages Form of register of wages cum Muster roll Wage slip Register of deduction for Damage loss Form No. i. ii. iii. iv. v. vi. vii. viii. Rule No 17(1) 18(1) 18(2) 21(1) 21(21) 25 29(2) 32(2)

9 10 11

ix. x. xi.

32(3) 32(2) 32(3)

12 13 14 15 16 17 18 19 20
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xii. xiii. xiv. xv. xvi. xvii. xviii. xix. xx.

74 75 76 77 78(2)(a) 78(2)(a) 78(2)(a) 78(2)(b) 78(2)(d)

21 22 23 24

Register of tines Register of Advances Register of Overtime Return to be sent by the Contractor to Licensing Officer half year ending Annual return of principal employer to the registering officer (Annexure to form)

xxi. xxii. xxiii. xxiv.

78(2)(d) 78(2)(d) 78(2)(e) 82(i)

25

xxv.

82(2)

DOCUMENTS & FORMALITIES REQUIRED TO BE MAINTAINED BY THE CONTRACTORS EMPLOYING TEN OR MORE WORKERS UNDER CONTRACT LABOUR (REGULATION & ABOLITION) ACT,1970

LICENSING OF CONTRACTORS A licence is to be obtained for engaging 10 (ten) or more labours by a Contractor by depositing fee for licence and Security Deposit. The application of Licence must accompany Form V to be obtained from IFFCO. This licence is to be renewed. An application for renewal of the license should be made atleast 30 days before the date on which the license expires. Application should be made in Form no. IV. The contractor shall abide by all the conditions laid down in the license. Subject to the provision of the act, a license under sub-section (1) may contain such conditions including, in particular, conditions as to hours of work, fixation of wages and other essential amenities in respect of contract labour as the appropriate government may deem fit to impose in accordance with the rules, if any, made under Section 35 and shall be issued on payment of such fees and on the deposit of such sum, if any, as security for the due performance of the conditions as may be prescribed. A licence is to be obtained for engaging 10 (ten) or more labours by a Contractor by depositing fee for licence and Security Deposit. The application of Licence must accompany Form V to be obtained from IFFCO. This licence is to be renewed. An application for renewal of the license should be made atleast 30 days before the date on which the license expires.

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Application should be made in Form no. IV. The contractor shall abide by all the conditions laid down in the license Validity & Renewal Every licence granted or renewed shall remain in force till 31st December of that year only. Change in the particulars specified in the Licence is to be intimated to Licensing Officer with the particulars & the reasons thereof. On good & sufficient reasons, Licence may be amended by Licensing Officer. Contractor has to apply to Licensing Officer for renewal of licence on or before 31st October. Revocation, suspension & amendment of license If the licensing officer is satisfied, either on a reference made to him in this behalf or otherwise, that(a) a license granted under section 12 has been obtained by misrepresentation or suppression of any material fact, or (b) the holder of license has, without reasonable cause, failed to comply with the conditions subject to which the license has been granted or has contravened any of the provisions of this Act or the rules made thereunder, then without prejudice to any other penalty to which the holder of the license an opportunity of showing cause, revoke or suspend the license or forfeit the sum, if any, or any proportion thereof deposited as security for the due performance of the conditions subject to which the license has been granted. Subject to any rules that may be made in this behalf, the licensing officer may vary or amend a license granted under section 12. Security Deposit The Contractor has to deposit the Security amount as prescribed by the State Govt. RESPONSIBILITY FOR PAYMENT OF WAGES (The Minimum Wages Act, 1948) .A contractor shall be responsible for payment of wages to each worker employed by him as contract labour and such wages shall be paid before the expiry of such period as may be prescribed. Every principal employer shall nominate a representative duly authorized by him to be present at the time of disbursement of wages by the contractor and it shall be the duty of such representative to certify the amounts paid as wages in such manner as may be prescribed. It shall be the duty of the contractor to ensure the disbursement of wages in the presence of the aurhorised representative of principal employer.
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In case the contractor fails to make payment of wages within the prescribed period or makes short payment, then the principal employer shall be liable to make payment of wages in full or the unpaid balance due as the case may be, to the contract labour employed by the contractor and recover the amount so paid from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor. Payment of Minimum Rate of Wages: The Act says that, where in respect of any scheduled employment minimum wages have been fixed, the employer shall pay to every employee wages at a rate not less than the minimum rate of wages fixed for that class of employees in the employment. Such wages shall be paid without any deductions except as may be authorized. Where the contract wage rate is higher, the statutory obligation does not come into play. At IFFCO the wages are paid to the labours as per the Minimum Wages Act, 1948. The contractor must pay wage rate as fixed and/or revised as per the Minimum Wages Act1948 in the presence of the Authorised representative of the section/department. He also has to make the payment of overtime for extra work at double the rate of normal wages. The payment of the wages is done in cash. The contractor must maintain a wage register which is to be duly attested by the Authorized representative of the section/department. The revised minimum wages for the period from 01/04/2010 to 30/10/2010 are as follows.

Category Rate

unskilled 151.9 132.5

Semi-skilled 156 133.8

Skilled 160.9 136.4

Clerk 164.2 164.4

Fixing Hours for a Normal Working Day: Where minimum wages have been fixed, the appropriate Government may--- (a) Fix the number of hours of work which constitutes a normal working day, inclusive of one or more specified intervals; Provide for a day of rest in every period of seven days and for payment of remuneration in respect of such day of rest; Provide for payment for work on a day of rest at a rate not less than the overtime rate.

(b)

(c)

Rates of Overtime: where a labour, whose minimum rate of wages is fixed under this Act, by the hour, by the day or by such longer wage- period as may be prescribed, works
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overtime, the employer shall pay him for every hour or for part of an hour so worked in excess, wages at the rate fixed for overtime work under the Act or under any law of appropriate Government in force, whichever is higher. Wage Period: a wage period to be fixed in respect of which wages shall be payable. This period shall not exceed one month, wages to be paid directly to the worker or other person authorisde by him in this regard. Disbursement of Wages: It shall be the duty of the contractor to ensure the disbursement of wages in the presence of the authorized representative of the principal employer. In case the contractor fails to make payment of wages within the prescribed period or make short payments than the principal employer shall be liable to make payment of wages in full or the unpaid balance due as the case may be, to the contract labour employed by the contractor and recover the amount so paid from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor. Notice Showing Wage period: A notice should be displayed at the place of work in English and Gujarati and one copy should be sent to Gujarat Licensing Officer showing the following: (a) Rate of Wages (b) date of payment of wages (c) Hours of work (d) wage period (e) name & address of inspecting officer (f) date of payment of unpaid wages (g) place and time of disbursement of wages. REGISTER OF PERSONS EMPLOYED: A register in Form XIII is to be maintained in respect of persons employed by the contractor. As per Rule 75, Form No.13 is to be filled. EMPLOYMENT CARD: An employment card is to be issued to all the employees in Form No. XIV as per Rule No 76 ,within three days of the employment. SERVICE CERTIFICATE: A service certificate in Form XV is to be issued on Termination of any employee and payment should be made within the second day. REGISTERS TO BE MAINTAINED: Register of Contractors: every principal employer shall maintain in respect of each registered establishment a register of contractors in Form XII In respect of establishments which are governed by the payment of wages Act, 1936 and the rules made thereunder, the following registers and records required to be maintained by a contractor as employer under those Acts and the rules made thereunder shall be deemed to be registers and records to be maintained by the contractor under these rukes, namely:30 | P a g e

1. Muster Roll 2. Register of Wages3. Register of Deductions4. Register of Overtime5. Register of Fines6. Register of Advances-

Form No.XVI Form No..XVIII Form No. XX Form No. XXIII Form No. XXI Form No XXII

Every principal employer shall, within in fifteen days of the commencement or completion of each contract work under each contractor, submit a return to the Inspector, appointed under Section 28 of the Act, intimating the actual dates of the commencement or as the case may be, completion of such contract work, in Form vi-B Every Principal Employer of a registered establishment shall send annually a return in Form XXV so as to reach the Registering Officer concerned not later than the 15th February following the end of the year to which it relates. INSURANCE: Risk and uncertainty are incidental to life. A labour may meet an untimely death. He may suffer from accident; destruction of property, fire, sea perils, etc. there is risk as well as insecurity. It is to provide against risk and insecurity that insurance came into being. Insurance does not avert or eliminate loss arising from uncertain events, it only spread the loss over a larger number of people who insure themselves against that risk. Every contractor is liable to have insurance of all the labors under him. He has to submit the copy of insurance challan to IFFCO Kandla. At the time of any accidental death of labour the contractor is liable under the above said act to pay compensation to the family members/nominee. IFFCO is liable as principal employer under the above said act to keep a watch that all the compensation is paid to the contract labour. PROVIDENT FUND: It is obligatory on the part of the contractor to arrange for deductions towards PF from the date of joining of an employee. In view of this, contractor will arrange for payment of contribution of PF of the employees engaged by him from the wages of his employees and matching contribution and matching contribution of the contractor from the date of joining of employee.
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The contractor shall extend PF benefits to all employees who have completed continuous service of three months as provided under the provident Fund Scheme, 1952. The contractor shall get his concern/ establishment covered under the Employees Provident Fund directly with appropriate Regional Provident Fund Commissioner,. WORK ORDER COPY: A copy of work order is given to the contractor after sanctioning the party for the concerned work on the basis of the lowest bid rate. The Work order specifies the terms and conditions of the work order and also mentions the validity period of the contract. SEAL: in all the registers, forms, documents, identity cards, Leave cards, Employment Cards, and other records maintained by the contractors under Contract Labour (Regulation & Abolition) Act and other labour laws there must be the seal of IFFCO as well as of the contractor concerned.

OBLIGATIONS OF THE PRINCIPAL EMPLOYER The principal employer must have to get the establishment registered under section 7 The principal employer should not employ contract labour without obtaining the registration certificates and to cease employing contract labour if registration is granted under the act. Under section 8 The principal employer shall not employee labour unless the contractor has taken the license. The principal employer should provide the amenities to the contract labour in the event of the failure of the contractor to do .under section 20 The principal employer should nominate a representative duly authorized by him to be present at the time of disbursement of wages by the contractor. For the representative so nominated certify the amounts paid to the contract labour as wages. The principal employer should also ensure payment of minimum wages by the contractor. The principal employer has to make the payment of wages or to make the payment of unpaid balance due to the workman in the event of the failure of the contractor to do so.

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 The principal employer has to submit annually a return in Form XXV so as to reach the registering officer concerned not later than 15th February following the end of the year to which it relates to. The principal employer should not deal directly with contract labour, any correspondence, etc.

OBLIGATIONS OF THE CONTRACTORS The contractor undertakes to comply with all the relevant provisions of the various rules and acts framed thereunder relating to the employment of contractlabour by the contractor, such as: a. The Contract Labour (Regulation & Abolition) Act, 1970 and the Central rules framed thereunder. b. The Factories Act, 1948 c. The workmens Compensation Act 1932 d. The Employees Provident Fund Act and misc Provision Act, 1952 e. The minimum wages Act, 1947 f. The inter state Migrant Workmen(Regulation of Employment & Conditions of Services) Act. 1979 g. The Employer State Insurance Act, 1948 h. The Provision of Industrial Disputes Act 1947 i. The payment of Bonus Act 1965 j. Any other present, future Acts/Rules may be enacted/framed/made applicable by the central government and is applicable to the contract labour from time to time. Any Civil / Criminal liability arising out of non compliance of the provision of any Act or Rules as applicable to the contract labour on account of the failure of the failure of the contractor will be at the sole risk, responsibility and the cost of the contractor.

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 Should the management of IFFCO suffer any civil/criminal damages/ liability or any other kind of financial liability or cost, the same will be duly compensated/ reimbursed/ borne by the contractor. The contractor shall give his telephone number and address to IFFCO of the place where he can be contacted in case of labour troubles , any other requirements etc. IFFCO will be entitled to deduct any sum payable by him and which sun/sums IFFCO is required to pay as Principal Employer on account of contractors default or otherwise, directly from the bills payable to the contractors in terms of this contract. The contractor shall notify the date and time for payment of wages to the authorized representative of Management of IFFCO. He should make payment not less than the Minimum Wages as modified by the Government The contractor shall make the required registers, records and also submit required returns under the relevant status applicable to him under intimation to IFFCO from time to time. No person who is not adult will be employed as contract labourviz not less than 18 years of age. The contractor shall communicate abour the commencement and completion of the contract to the management of IFFCO. The labourers permitted inside the factory shall be engaged in the specific work under the contract and should not be employed on other jobs inside the factory without the prior written specific approval of IFFCO. The contractors labours/supervisors have to observe the shift timings etc. as prescribed under the Factories Act, 1948 and Rules framed thereunder and intimate the same to IFFCO accordingly. For any odd hours they will have to take written permission from IFFCO. Entire Factory area is declared as Non-Smoking area, except where permissible. The contractor shall ensure to observe this caution carefully

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WELFARE AND HEALTH OF CONTRACT LABOUR

CANTEENS The appropriate Government may make rules requiring that in every establishment(a) To which this Act applies, (b) Wherein work requiring employment of contract labour is likely to continue for such period as may be prescribed, and (c) Wherein contract labour numbering one hundred or more is ordinarily employed by a conbtractor. One or more canteen shall be provided and maintained by the contractor for the use of contract labour. REST ROOMS In every place wherein contract labour is required to halt at night in connection with the work of an establishment. (a) To which this Act applies, (b) Wherein work requiring employment of contract labour is likely to continue for such period as may be prescribed, There shall be provided and maintained by the contractor for the use of contract labour such number of rest rooms or such other suitable alternative accommodation within such time as may be prescribed. The rest rooms or the alternative accommodation to be provided under sub- section (1) shall be sufficiently lighted and ventilated and shall maintained in clean and comfortable condition.

OTHER FACILITIES It shall be the duty of every contractor employing contract labour in connection with the work of an establishment to which this Act applies to provide and maintain (a) A sufficient supply of wholesome drinking water for the contract labour at convenient places;
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(b) A sufficient number of latrines and urinals of the prescribed types so situated as to be convenient and accessible to the contract labour in the establishment; (c) Washing facilities. FIRST AID FACILITIES There shall be provided and maintained by the contractor so as to be readily accessible during all working hours a first aid box equipped with the prescribed contents at every place where contract labour is employed by him.

ADMINISTRATION OF CONTRACT LABOUR

Work Order is given by the concerned deptt. to the Contractor. Contractors fill in an application Form for engaging contract labour every month /new entry. Concerned department recommends the no. of labourers. Safety department imparts training to the labourers. Personnel department gives its approval only after being assured about no. of the workers in the license of the contractor & workman compensation Insurance. Employment Card/Gate pass is issued by the Security department. Gate pass is issued only for a month. Workmen who have gate pass can enter in the premises

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What precautions should be taken while engaging Contract Labour?

(1) (2) (3) (4) (5) (6) (7) (8) (9)

Registration Certificate of Principal Employer License of the Contractor Selection of contractor Terms and conditions of the agreement Appointment of contract labour Supervision and control Disciplinary matters Payment Statutory compliance

LIMITATION OF THE STUDY Every study has certain limitations & restrictions. While Contract labour is such an area in which a researcher has to depend on the official data provided by the Organisation & Contractors. Detail study in the topic and that to direct interaction with the contract labours at their work place & dwelling can find out more learnings.

Recommendations and Suggestions

Communication between contractor and labour should be transparent Contractor should give weekly off , room facilities and medical facilities to the labours Minimum wages should be paid to unskilled labours To provide safety measures Security contract should be commissioned under private security agency Payment should be made under the payment of wages act and minimum wages act.

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BIBLIOGRAPHY

BOOKS Elements of Mercantile Law by IFFCOs MATERIALS Registers and Forms of Contract Labour N.D. Kapoor

WEBSITE www.Iffco.nic.ins

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