7/18/2016

LabourreformintheworkstogivelegalbackingtocontractworkersTheEconomicTimes
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Labourreformintheworkstogivelegal
backingtocontractworkers
ByYogimaSharma,ETBureau|Jul18,2016,06.25AMIST

PostaComment

READMOREONTheContactLabour|TeamLease|RituparnaChakraborty|labourreforms

NEWDELHI:Thehiringofcontractworkers
maysoongetfirmlegalbackingasthe
governmentisconsideringtheintroduction
oflabourreformsthatwillhavefarreaching
impact.
TheContactLabour(Regulation&
Abolition)Actdeniesadequatelegal
protectiontocontractworkersandisseen
asdiscouragingtheformalisationofthe
labourforce,thusdeprivingmanyemployed
intheinformalsectorofadequate
safeguards.

Contractlabouraccountsfor55percentofpublicsectorjobs
and45percentofthoseintheprivatesector.

Thegovernmentisconsideringaproposaltodroptheword'abolition'fromthelaw,asit
contradictstheregulationofthesector,andgivingstaffingfirmsanationallicence.
Thelicencewillbebasedonsetcriteriaandrenewedeverythreeyears.Thiswillhavethe
twinadvantageofprovidingbettersocialsecurityforcontractworkersandhelpcreate
morejobsintheorganizedsector.
"Contractlabourisnowareality.Thereisaneedforalegalandadministrativepolicy
frameworkthatcanprovideforeasyhiringandsocialsecurityforagrowingnumberof
contactworkersinthecountry,"aseniorgovernmentofficialtoldETonconditionof
anonymityastheproposalisstillbeingdiscussed.
Boththegovernmentandthecorporatesectoremployalargenumberofcontract
workers.

Contractlabouraccountsfor55percentofpublicsectorjobsand45percentofthosein
theprivatesector.
Ifaccepted,thegovernmentwillmoveanamendmenttotheContactLabour(Regulation
&Abolition)Acttorenameit."Thiswouldgivecontractlabourersthefirstandmuch
neededrecognition,"theofficialsaid.

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7/18/2016
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Thenumberofcontractlabourersinthecountryisontherise,primarilybecausetheycan
bepaidlessthanpermanentworkersandtheeasewithwhichtheycanbesacked.About
2millioncontractlabourersarecurrentlyintheorganisedsector,whichitselfisminuscule.
Outof480millionworkersinthecountry,just10percentareintheorganisedsector,
deprivingthevastmajorityofsocialsecuritybenefitstocontractworkerswhoarepartof
theunorganisedsector.
Staffingfirmswouldwelcomeanymovetoformalisesuchemployment."Currently,staffing
firmshavetogoforapprovalsforhiringcontractworkersateverylocation/premisesand
foreverychangeinnumber,"saidRituparnaChakrabortyoftheIndianStaffingFederation
lobbygroup.

Nowgetyourphoto,logoon
postagestampforRs12lakh

Asinglelicencewouldbeaboon,shesaid."Onenationallicence,whichcouldbegiven
basedonthefinancialcredibilityandpastrecordofstaffingfirms,willmakeiteasierforus

Advt:IsEmployer'sHealth
InsuranceEnough?

tooperate,besidesreducinginformalisation,"saidChakraborty,alsocofounderof
Teamlease.
"Suchasweepingchangeinlegislationwillseesmallstaffingfirmseithercloseshopsor
startbeingcompliant.Forbiglistedfirms,weseethisasadirectpushtojobcreation."

Advt:WithPageWide,printers
makethebroadeststatement
ever!

TheInternationalLabourOrganisation'sconvention181regardingprivateplacement
agenciesprescribesatripartiterelationshipincontractualhiring.WhileIndiaisoneofthe
ILO'ssignatories,itisnotamongthebig42countriesthathaveratifiedtheconvention.
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Labourreformintheworksto
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7/18/2016

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