A presentation on Labour

Laws
by : Uday Ghag
General Manager H R & I R ,
Mirc Electronics Ltd
Hon. Secretary ISTD Mumbai

LAWs - Acts and Rules

Acts - Framed by the Legislature, i.e., the

Parliament or the State legislature.
The three lists under the Constitution
The Union list - E.g.: Defence, Banking, Foreign
Affair.
The State list - E.g.: public order, agriculture, forests
The Concurrent list - E.g Torts, trusts, Labour

Rules - Framed by the executive under the

provisions of the relevant Acts.

Sources of labour laws

Adoption of pre-independence laws.

Industry specific requirements.
Regional requirements.
Ratification of ILO conventions.
Amendments based on court decisions.
Changes due to dynamic market forces in a
changing socio-economic environment.

Whose
responsibility..

While all Acts hold specific persons

responsible for enforcement, it is actually
the responsibility of all working in an
organisation to implement the
provisions of law in letter and spirit.

Classification of labour
laws-1

Employee Welfare Legislation

The Factories Act, 1948.

Payment of Wages Act, 1936.
Minimum Wages Act, 1948
The Payment of Bonus Act, 1965
The Maternity Benefits Act, 1961

Classification of labour
laws-2

Social security legislation

The Employees PF & Miscellaneous Provisions
Act 1952.
The Payment of Gratuity Act 1972.
The Workmens Compensation Act 1923.

Classification of labour
laws-3

Industrial Relations legislation.

The Industrial Disputes Act, 1947.
The Industrial Employment (Standing Orders)
Act 1947.
The Trade Unions Act 1926.
The Maharashtra Recognition Of Trade Unions
and Prevention of Unfair Labour Practices Act
1972. (MRTU & PULP Act)

Classification of labour
laws-4

Other Miscellaneous Legislation

The Contract Labour (Regulation & Abolition)
Act, 1970.
The Apprentices Act, 1961.
The Employment Exchanges (Compulsory
Notification of Vacancies) Act, 1959.

The Factories Act, 1948

The Factories Act 1948

An Act to secure

Health
Safety
Welfare
Working hours
Leave
other benefits

to workers
employed in
factories.

The Factories Act 1948

What is a factory?
Factory means a premises where a
manufacturing process is carried out
and
10 or more workers are working with the
aid of power
or
20 or more workers are working without
the aid of power.

The Factories Act 1948

Worker
A worker is a person who is:
directly employed
indirectly employed
with wages
without wages
with the knowledge of the employer
without the knowledge of the employer

The Factories Act 1948

Occupier: the person who has the ultimate
control over the affairs of the factory,
provided that in the case of a company, any
one of the directors shall be deemed to be
be the occupier.
Manager: the person responsible to the
occupier for the working of the factory for
the purpose of the Act.

The Factories Act 1948

Health of the workers
Factory to take appropriate measures as per the
provisions of this act to;

Keep its premises clean.

Dispose of wastes and effluents.
Maintain adequate temperature and ventilation.
Prevent accumulation of dust and fumes.
Artificial humidification
Avoid overcrowding.( 9.9 & 14.2 cubic meters / worker
measured up to 4.2 meters height )
Provide sufficient lighting, drinking water,toilets,
spittoons etc.

The Factories Act 1948

Safety of workers
Factory to take appropriate measures as per the
provisions of this act to;
Fence certain machinery.
Protect from machinery in motion.
Protection of young persons from dangerous
machinery.
Maintain hoists and lifts in good conditions.
Protect from injury to eye.

The Factories Act 1948

Safety of workers
Protect from dangerous, dust, gas fumes and
vapours.
Protect from fire.
(contd.)

The Factories Act 1948

Welfare of workers
Factory to make provision for:

Washing.
Sitting while at work.
Storage of clothes and belongings.
First aid boxes.
Canteen. (250)
Rest rooms and lunch rooms. (150)
Crches. (30)
Welfare officers (500)

The Factories Act 1948

Duties of Welfare Officer
To establish contacts and hold consultations
for maintaining good IR.
To take up individual / collective grievances
to management.
To understand & put forth the views of
workers for formulating Labour Policies.
To educate the workers about their rights &
liabilities under the standing orders.
Welfare Officer can not appear in Labour
Courts on behalf of the management.

The Factories Act 1948

Working hours for adults
Not more than 48 hours in a week. (75 with
OT)
Not more than 9 hours in a day.
An interval of rest at least half an hour after
5 hours work.
Total period of work including rest interval
not to exceed 10 hours and 30 minutes.
A holiday for a whole day in every week.

The Factories Act 1948

Working hours for adults
OT not to exceed 50 hours in a quarter.
After 9 hours work in a day or 48 hours in a
week, overtime at double the rate to be
paid.
A woman worker can not be employed
between 7 p.m. and 6 a.m.
(contd.)

The Factories Act 1948

Working hours for children
Employment of children below 15 totally
prohibited.
A child between the age of 15 and 18 can be
employed for a period of 4 hours and 30 minutes.
Such child can not be employed between 10 p.m
and 6 a.m.
child to carry certificate of fitness issued by
certifying surgeon.

The Factories Act 1948

Working hours for children ...
A register to be maintained for child labour.
A child between the age of 15-18 can be
employed as an adult provided he carries a
certificate of fitness for full days work.

The Factories Act 1948

Leave
Annual leave with wages @ one day for
every 20 days of work performed by him in
the previous calendar year provided he has
worked for more than 240 days in the
previous year.
Leave not more than three times in a
calendar year.
For child leave allowed on the same basis
but @ one day for every 15 days of work.

The Factories Act 1948

Leave

(contd.)

Accumulation of leave permitted up to 30

days for adults and 40 days for a child.
Leave will be exclusive of holidays
occurring during or at either end of the
leave period.

PAYMENT OF
WAGES ACT, 1936

PAYMENT OF WAGES ACT, 1936

An Act to regulate the payment of

wages to certain classes of persons

Extends to the whole of India

Responsibility of payment wages rests with
the employer
Employer to fix Wage Period
No wage period shall exceed one month.

PAYMENT OF WAGES ACT, 1936

Time of Payment of wages

If less than 1000 persons employed

wages to be paid before the expiry of the
7th day of the following month

If more than 1000 persons employed

wages to be paid before the expiry of the
10th day of the following month

PAYMENT OF WAGES ACT, 1936

Wages should be paid in currency
coins or currency notes

After obtaining the authorisation

either by cheque or by crediting the
wages in employees bank account

PAYMENT OF WAGES ACT, 1936

Permissible Deductions from wages
Fines
For absence from duty
For damage caused to the property of the employer
For the amenities provided, like house accommodation
For recovery of advance or adjusting over payment of
wages
Towards EPF, ESI, Labour Welfare Fund and similar
deductions permitted under any Act or the Standing
Orders of the establishment
For premium for Life Insurance/ general insurance
policies and Housing loan.

The Minimum Wages Act,

1948

The Minimum Wages Act

1948

An act to provide for

minimum rates of
wages in certain
employment.

The Minimum Wages Act

1948

Minimum Wages such

as
Basic rates of Wages,
Variable DA,
Value of other
concessions, etc

The Minimum Wages Act

1948
Government can also fix Minimum Wages for
Time Work

Piece Work at piece rate

Overtime work done by employees for

piece work or time rate workers

The Minimum Wages Act

1948
The following procedure is to be followed:
by appointing one or more committee
consisting of representatives of employers
and employees and by taking into
consideration their recommendations.
By formulating and publishing its proposal
and taking into consideration the
representations received in response to the
proposals.

The Minimum Wages Act

1948
As a rule the minimum wages should be
paid in cash only. However the employer
can pay in kind with the permission of the
government.
Attendance bonus can not be treated as part
of minimum wage.

The Minimum Wages Act

1948

An employer is bound to pay minimum

wages fixed under this Act. It is irrelevant
whether he has the capacity to pay or not. .
Worker is entitled to receive full days work
even if he is engaged for less than normal
working day.
Normal working hours prescribed under this
Act is 9 hours.
OT at double the rate payable beyond 9
hours.

The Minimum Wages Act

1948
CATEGORY

TOTAL ( Basic + DA)WAGES (P/D.)

UNSKILLED

Rs.182

SEMI - SKILLED

Rs.202

SKILLED

Rs.221

CATEGORY

TOTAL WAGES ( HRA & other overheads)

(P/D.)

UNSKILLED

Rs.225

SEMI - SKILLED

Rs.252

SKILLED

Rs.278

THE MATERNITY BENEFIT ACT, 1961

THE MATERNITY BENEFIT ACT, 1961

The Act extends to the whole of India
except Jammu & Kashmir
Applies to every factory, shop or
establishment
Woman entitled to maternity benefit not
withstanding the application of the
Employees State Insurance Act, 1948

THE MATERNITY BENEFIT ACT, 1961

Conditions for eligibility of benefits

Women who have worked in an

establishment for a period of not less
than 80 days in the twelve months
immediately preceding the date of her
expected delivery.

THE MATERNITY BENEFIT ACT, 1961

Cash Benefits:
Leave for six weeks before the delivery
Leave for six weeks after the delivery/
miscarriage
Additional leave of one month if the
woman is suffering from illness related
with pregnancy, delivery, miscarriage, etc

THE MATERNITY BENEFIT ACT, 1961

Non Cash Benefits:
Light work for ten weeks before the date
of delivery
Two nursing breaks of 15 minutes till the
child is 15 months old
No discharge or dismissal while she is on
maternity leave

EMPLOYEES PROVIDENT
FUND AND MISC. PROVISIONS
ACT, 1952
An Act to provide for the institution of
provident funds, pension funds and deposit
linked insurance fund for the employees in the
factories and other establishments
Extends to the whole of India except the State
of Jammu and Kashmir

Applicability
Applies to all factories and
establishments in which 20 or more are
employed
Continuity of application
Exemption

Where employees get benefits in the

nature of provident fund or old age
pension fund from the establishment
which are not less favourable than the
benefits under the Act.

Schemes under the Act

Three beneficial schemes1.Employees Provident Fund Scheme
1952
2.Employees Pension Scheme 1995
3.Employees Deposit Linked Insurance
1976

membership
An employee at the time of joining the
employment and getting wages up to
Rs.6500/- is required to become a
member.
an employee is eligible for membership of
fund from the very first date of joining a
covered establishment.

Contribution to EPF

Employees share : 12% of the Basic + DA

Employers contribution : 12% to be deposited
as :

8.33% to be deposited in Pension Fund A/C

No 10 and
the balance, ie, 3.67% to be deposited in
Provident Fund A/C No 01 along with
Employees share of 12%

Contribution (contd.)
Administration charges @ 1.1% of the total wages/salary disbursed
by deposit to A/C No 02,
Employees Deposit Linked Insurance @
0.5% of the total wages/salary by deposit to
A/C No. 21 and
Administration of EDLI @ 0.01% of the
wages/ salary by deposit to A/C. No. 22.

Benefits to employees
Provident Fund Benefits
Pension Benefits
Death Benefits

Provident
Fund
Benefits
Employer also contributes to Members PF @ 3.67%

(1.67% in case of sick industry - eg: beedi)

EPFO guarantees the Employer contribution and Govt.
gives a decent interest to PF accumulations
Member can withdraw from this accumulations to
cater financial exigencies in life - No need to refund
unless misused
On resignation, the member can settle the account. i.e.,
the member gets his PF contribution, Employer
Contribution and Interest

The Employees Deposit-Linked

Insurance Scheme, 1976

Purpose : To provide life insurance benefits to

the employees of the establishments covered
by the EPF & MP Act, 1952

Contribution under EDLI Scheme,1976

1. Employees : Not required
2. Employer :
(a) 0.5% on Basic + DA
(b) Administrative Charges : 0.01% on
Basic +DA
Where the monthly pay of an employee is more than
Rs. 6,500 the contribution payable in respect of him
by the employer is limited to the amts payable on a
monthly pay of Rs. 6,500 only.

Benefits of EDLI scheme

The benefit provided under the scheme in the nature of
life insurance as follows:
1. On the death of an employment while in service a
lump sum insurance amount is payable to his
nominee or family members.
2. The insurance amount is equal to the average
balance in the account of the deceased employee in
the Provident Fund during a period of 12 months
immediately preceding his death. In case the
average balance exceeds Rs.35,000/- the insurance
amount payable is Rs. 35,000/- plus 25% of the
amount in excess of Rs. 35,000/- subject to a ceiling

LOANS AVAILABLE
Type of Loan

Eligibility
Criteria

Amount Of
Loan

Papers to be submitted

Purchase of a
Dwelling Site

Membership for
Min 5 Years

90% of the
Employee Part

Original Title deed, non-encumbrance

Certificate (For verification &
Return), Agreement with the seller

Purchase of
Dwelling
House/Flat

Membership for
Min 5 Years

90% of the
Employee Part

As above and a certificate stating

that House/Flat is new and unlived
one. Furnishing the number and date
of approval

Construction of
House

Membership for
Min 5 Years

90% of the
Employee Part

Original Title deed (For verification

and return).Non encumbrance
certificate estimate cost of
Construction , Approved Plan

LOANS AVAILABLE. CONTD

Type of Loan

Eligibility
Criteria

Amount Of Papers to be submitted

Loan

Repayment of (Housing)
Loan State Govt.Housing
Board ,Municipal
Corporation or a Body
Similar to DDA

Membership For
5 Years

50% of total
contribution
or loan
amount
whichever is
less

A Certificate from the lending authority

furnishing the details of Loan and
Outstanding Amount.

Marriage of
Self/Son/Daughter/Sister/Br
other

Membership for
7 Years

6 times of
Basic plus
DA 48
instalments

A marriage Card

LOANS AVAILABLE. CONTD

Type of Loan

Eligibility
Criteria

Amount
Of Loan

Religious Ceremony

Membership For
5 Years

3 times of
Basic plus
DA 24
instalment
s

Post matriculation education of

Son/Daughter

Membership For
5 Years

3 times of
Basic plus
DA 24
instalment
s

Papers to be submitted

The Payment of Gratuity Act,

1972

The Payment of Gratuity Act,

1972

An act to provide for

uniform scheme for
payment of Gratuity to
industrial workers
throughout the country

The Payment of Gratuity Act,

1972
Eligibility for Gratuity
On Superannuation; or
On resignation from service; or
Employee dies while in service;
Service of the employee is terminated on his
disablement due to accident or disease

The Payment of Gratuity Act,

1972
Eligibility for Gratuity
In order to earn Gratuity, the employee has to
render minimum five years service
In case of death or disablement of the employee,
Gratuity becomes payable to his nominee even if
he has rendered service less than five years.

The Payment of Gratuity Act,

1972
Quantum of Gratuity
{(Basic plus DA)} * 15 * No. of years of service
{
26
}

The Payment of Gratuity Act,

1972
Forfeiture of Gratuity
On termination of an employee on moral
turpitude and riotous or disorderly behavior
Wholly or partially for willfully causing loss,
destruction of property, etc

The Workmens
Compensation
Act, 1923

The Workmens Compensation

Act, 1923

An Act to provide for

the payment by certain
classes of employers
to their workmen of
compensation for
injury by accident.

The Workmens Compensation

Act, 1923
Liability for compensation
Compensation payable to workmen for
injury caused in accident;
Arising out of and
During the course of employment

The Workmens Compensation

Act, 1923
The doctrine of notional extension of
employment
Compensation payable for injury caused to a
workman by accident occurring :
beyond his working hours
beyond his workplace

if there is a nexus between the time and place of

the accident and his employment

The Workmens Compensation

Act, 1923
Types of injury compensated
Death.
Permanent total disablement.
Permanent partial disablement.
Temporary disablement.
Total
Partial

The Workmens Compensation

Act, 1923
Not payable .
Injury does not result in total or partial
disablement for more than three days.
If the injury does not result in death or permanent
total disablement compensation not payable if;
workman was intoxicated.
He did not follow safety rules.
Willfully removed any safety guard or device.

The Workmens Compensation

Act, 1923
To whom payable...
In case of death of a workman
compensation is payable to the dependents
as defined in section 2 (1)(d) of the Act.

The Workmens Compensation

Act, 1923
How much is payable..
In case of death
= 50% of wages multiplied by the
relevant factor or
Rs 80000 whichever is more.
In case of permanent total disablement= 60% of wages
multiplied by the relevant factor or Rs 90,000 whichever is
more.
In case of permanent partial disablement a percentage of
this amount is payable.
In case of temporary disablement=25% of the wages paid
half monthly.

The Workmens Compensation

Act, 1923

For the purpose of calculating the

compensation for death or permanent total
disablement, the maximum wages is treated
as Rs 4000/-.

The Industrial Disputes

Act,
1947

The Industrial Disputes

Act, 1947

An Act to make
provision for the
investigation and
settlement of industrial
disputes

Definition of Industrial
Disputes
Section 2(k) defines industrial dispute as
any dispute or difference between;
Employers and employers.
Employers and workmen.
Workmen or workmen
connected with the employment or non
employment or the terms of employment or
with the conditions of labour of any person.

Deemed dispute

Where an employer discharges, dismisses,

retrenches or otherwise terminates the
services of a workman, any dispute or
difference between that workman and his
employer connected with or arising out of
such dismissal, discharge retrenchment or
termination shall be deemed to be an
industrial dispute.

Authorities under the Act

Works committee.
Conciliation officers.
Board of conciliation.
Labour Courts.
Industrial Tribunals.
Grievance Settlement Authority.

Modes of settling a dispute

The three modes normally adopted to settle
any dispute are:
Mediation.
Conciliation.
Arbitration / Adjudication.

The genesis of a dispute

and its settlement
Union submits its charter of demands
The management may also submit its COD.
Collective Bargaining takes place.

An agreement is arrived at OR

there is a stalemate and the dispute is

referred for conciliation

Conciliation
Once the dispute is refereed to for
conciliation the conciliation officer takes
step to bring about an amicable settlement.
If a settlement is arrived at as a result of
conciliation a memorandum of settlement is
signed.
If a settlement can not be arrived at a failure
report is sent to the government.

Arbitration

Either before the conciliation proceedings

or immediately thereafter (but before the
dispute is referred to for adjudication) the
parties to the dispute can refer the dispute
for arbitration. The arbitrator could be a
mutually agreed person.

Adjudication

After getting the failure report from the

conciliation officer the government may
refer the dispute for adjudication to labour
court or industrial tribunal.

Strike

Strike means a cessation of work by a body

of persons employed in any industry acting
in combination, or a concerted refusal, or a
refusal under a common understanding, of
any number of persons who are or have
been so employed to continue to work or to
except employment.

Strikes
No person working in a public utility
service can go on strike without giving a notice of strike within six
weeks before striking
within fourteen days of giving such notice
before the expiry date of strike specified in
such notice
during the pendency of a conciliation
proceeding and seven days thereafter.

lockout

Provisions similar to those for strike apply

for lockout also.

A lockout declared in consequence of an

illegal strike or a strike declared in
consequence of an illegal lockout shall not
be deemed to be illegal.

The Maharashtra
Recognition of Trade
Unions and Prevention of
Unfair Trade Practices Act
1971

MRTU & PULP Act 1971

An act to provide for

the recognition of
trade unions for
felicitating collective
bargaining, to state
their rights and
obligations, to confer
certain powers to
unrecognised unions

Procedure for recognition

A union can apply to the industrial court for

recognition if:

in the preceding six calendar months it has

a membership of 30% of the total number of
employees.

Procedure for recognition

(contd..)
On receipt of the application for recognition
the labour court issue a notice inviting
objections to recognition being granted to
the applicant.
If After considering the objections, if any,
the court is satisfied about the genuineness
of the applicant union, grant recognition
(subject to conditions of s/19 being
fulfilled.)

Procedure for recognition

(contd...)
If after considering the objections the court
comes to the conclusion that some other
union has the largest majority, it may grant
recognition to that union provided it has
registered its claim to be recognised.
Only one union can be recognised.
Recognition not granted if bona fide interest
of the employee not established.
Recognition not granted if within past six
month the union has gone on an illegal
strike

Rights of unrecognised
unions
Settlement of individual grievances.
Represent in domestic enquiry.

The Industrial Employment

(Standing Orders )
Act,1946

The Industrial Employment

(Standing Orders )
Act,1946

An Act for defining

with sufficient
precision certain
conditions of
employment in
industrial
establishments

Application of Model
Standing Orders

The model standing orders apply to all

establishments till certification of
amendments.

Certification of
amendments
Five copies of the draft amendments to be
submitted to the certifying officer.
Certifying officer forwards the proposed
amendments to the union or employer
inviting their views.
After giving an opportunity to the other
party the officer shall decide whether such
modification is required.
If satisfied he shall certify.

Standing Orders
Classification of Workmen
Permanent
Probationer
Temporary
Casual
Apprentices

Standing Orders

Transfer
Transfer to different category of job
Payment of Unclaimed Wages
Payment of Wages in case of Death
Shift Working
Change of shift
Closure and starting of shifts

Standing Orders

Lunch, Tea and Refreshments

Attendance
Marking Attendance
Leaving Time
Late Arrival
Absence
Urgent Personal Work

Standing Orders

Entry and Exit

Search
Leave
Resignation
Superannuation
Premature Retirement

Standing Orders
Misconducts
Punishment
Procedure for Disciplinary Action

The Contract Labour

(Regulation & Abolition)
Act, 1970

The Contract Labour (R & A)Act, 1970

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.

The Contract Labour (R & A)Act, 1970

Welfare measures to be taken by Contractor
Canteen should be provided if 100 or more
contract labour employed
First Aid Facilities
Rest Rooms
Drinking Water, Latrines and Washing facilities

The Contract Labour (R & A)Act, 1970

Liability of Principal Employer
To ensure provision for canteen, restrooms,
drinking water, latrines, urinals, washing
facilities
Principal Employer entitled to recover from
contractor for providing such amenities or to
make deductions from amount payable

The Contract Labour (R & A)Act, 1970

Responsibility of Contractor
To pay timely and to ensure the disbursement of
wages in the presence of authorised
representative of the principal employer.
Rate of wages not less than the rates fixed or
prevailing in such employment as fixed by
agreement

The Contract Labour (R & A)Act, 1970

DOS

The establishment in the first instance must ensure that they

have got a registration certificate from the competent authority
as provided u/s 7 of the Contract Labour (R&A) Act, 1970
before proceeding to engage the contract labour.

The establishment must ensure that they issue certificate in

Form V to the contractor for obtaining license as provided u/s
12 of the Act.

It must be ensured that the contractor who is employing more

than 20 persons has a valid licence issued in his name by the
competent authority as provided under section 12 of the Act.

The payment of wages to the employees employed by the

contractor is disbursed to his employees by the contractor
himself or his nominee and principal employer has to depute his
representative to be present and sign the payment register in
token of having disbursed the salary in his presence by the
contractor.

The Contract Labour (R & A)Act, 1970

There should not be any direct supervision and

control by the principal employer in respect of
employees employed by the contractor to fulfill
the obligation of the contract.

The work for which contract labour is engaged

is not of perennial nature.

Discipline of the employees of contractor in the

discharge of duties must be regulated by the
contractor and not by the principal employer.

Leave to the employees of contractor must be

sanctioned by the contractor and not by the
principal employer.

The Contract Labour (R & A)Act, 1970

Maintenance of all types of record in respect of

the employees employed by the contractor
should be his own responsibility and principal
employer should not intervene in such matters.

If the establishment is covered by the

Employees Provident Funds and Misc.
Provisions Act and the Employees State
Insurance Act then the preference should be
given to those contractors who have their own
code numbers under these Acts.

To ensure compliance by the contractor of the

obligation pertaining to the various provisions
regarding amenities and benefits as prescribed
under the Act.

The Contract Labour (R & A)Act, 1970

That the agreement to be entered into with the contractor should

be drafted and executed on a non-judicial stamp paper.

That the agreement must disclose the names, addresses of the

contractor and the principal employer.

That the agreement must specify the rights and obligations of

both the parties.

That the agreement must disclose the place of work, time of

working, rate of compensation and consequences of breach of
contract and procedure for termination of the agreement by
both the parties.

That the agreement must also disclose the scope of work,

deployment of manpower in number, period of validity, security
deposit and terms of payment to the contractor.

That the agreement should be witnessed by two witnesses.

The Contract Labour (R & A)Act, 1970

DONTS

Contract should not specify the number of persons

required but must quantify the work itself.

No advance should be paid by the principal employer

to the contractors employees directly. Only
contractor must regulate the same.

Do not employ more than the necessary numbers of

contract labour. If need be, people may be employed
on contract basis of specific period or on temporary
basis.

Leave to the Contract Labour should not be

sanctioned by the Principal Employer or his officer.

The Contract Labour (R & A)Act, 1970

Entry pass for Contract Labour should be separate and

different from that issued by the Principal Employer to its
direct employees and should clearly indicate Contract
Labour.

Direct labour should not be employed in the same

categories in which Contract Labour is being used.
Attendance of Contract Labour should not be marked by
officers of the Principal Employer.

Payment of wages to the Contract Labour must not be paid

by the Principal Employer (Cases have come to the notice
where direct payment was made by the Principal
Employer, creating serious complications.)

No instructions/directions should be given in writing by

the Principal Employer to the Contract Labour.

Thank you