{"id":16389,"date":"2020-10-04T07:01:28","date_gmt":"2020-10-04T07:01:28","guid":{"rendered":"https:\/\/plyinsight.com\/?p=16389"},"modified":"2020-10-04T07:02:43","modified_gmt":"2020-10-04T07:02:43","slug":"major-changes-in-the-contract-labor-system","status":"publish","type":"post","link":"https:\/\/plyinsight.com\/hi\/major-changes-in-the-contract-labor-system\/","title":{"rendered":"Major Changes in the Contract Labor System"},"content":{"rendered":"
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Major Changes in the Contract Labor System<\/strong><\/span><\/h3>\n
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The National Democratic Alliance (NDA) government has recently introduced the Labor Code in Parliament to liberalize the contractual (contract) labor system in the country, under which companies will be free to appoint such workers.<\/p>\n

The proposed OSH Code states that ‘it is prohibited to employ workers on contract for core activities in any establishment.’ The main activity is called the establishment for which the purpose is established and any such activity which is necessary. But sanitation, security service, canteen, horticulture, housekeeping etc. will not be considered as main activity if it is not the main business of the concerned establishment.<\/strong><\/span><\/p>\n

For example, Maruti Suzuki cannot employ contract labor to produce cars, as it is its main business. But contract workers for canteens, housekeeping or security services will be allowed to be appointed.<\/p>\n

But a careful reading of the proposed OSH Code shows that even for core activities, firms will be free to hire workers on contract if they use contractors for this. Even on the sudden increase of work, companies can hire workers on contract for core activities.<\/strong><\/span><\/p>\n

Confederation of Indian Industry, said, “The proposed bill is designed in such a way that companies have equal expertise for all kind of work to run their operations smoothly.” There will be more efficiency. Some activities have to be outsourced and many countries have this type of system. In today’s time, companies need to focus on their core business.<\/p>\n

The current contract labor law of the country is known as the Contract Labor (Regulation and Abolition) Act, 1970. Under this, permanent employees have been encouraged and emphasis has been laid on ending the system of hiring workers on contract. Under this, all companies employ at least 20 contract workers. Under the proposed code, companies can hire at least 50 contract workers. This meant that many companies would fall outside the purview of the labor law.<\/p>\n

The government has proposed that an authority be appointed which will decide whether the related activities are salient or not. If the companies have any objection to the decision of the authority, then it can inform the government.<\/p>\n

CA Neeraj Garg said that in the name of ease of doing business, proposals are being made to legalize more and more companies out of the purview of the labor law by the OSH Bill Code in the name of ease of doing business. In many cases, the government has also allowed contract workers to be employed in core activities.<\/p>\n

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Major Changes in the Contract Labor System The National Democratic Alliance (NDA) government has recently introduced the Labor Code in Parliament to liberalize the contractual (contract) labor system in the country, under which companies will be free to appoint such workers. The proposed OSH Code states that ‘it is prohibited to employ workers on contract […]<\/p>","protected":false},"author":1,"featured_media":16390,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[779],"tags":[783],"class_list":["post-16389","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-september-articles-2020","tag-major-changes-in-the-contract-labor-system"],"yoast_head":"\nMajor Changes in the Contract Labor System - PLY INSIGHT<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/plyinsight.com\/hi\/major-changes-in-the-contract-labor-system\/\" \/>\n<meta property=\"og:locale\" content=\"hi_IN\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Major Changes in the Contract Labor System - PLY INSIGHT\" \/>\n<meta property=\"og:description\" content=\"Major Changes in the Contract Labor System The National Democratic Alliance (NDA) government has recently introduced the Labor Code in Parliament to liberalize the contractual (contract) labor system in the country, under which companies will be free to appoint such workers. 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