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S MAHESH ABABU (ASST LEGAL OFFICER)     18 February 2016

Gratuity to contract labourers

Respected sirs, 

We are engaging contract labourers through contractors for a period of 2years and 01 year extension thereafter the contractor is changed by a tender process . However, the new contractor employs the the very same CL under the new contract. This preactice is goping for about two decades.Such contract labourers are paid  PF & ESI by the contractor.   In otherwords, there is a change of ownership.

But recenbtly , the labourers union ( unrecognised  union)  made refefrence to to the ALC citing the MoS reached between the labourers union and the contractors as per Rule 58 of the Industrial disputes ( Central rules), 1952.

We are mill having employyee stregth ofabout 1000 employees.

ALC is exerting pressure to include gratuity in the new contracts to be entered between the labourers union and the contractor alongwith our firm as a witness.]

my quries:

Whether the management can go ahead with the new cluse .. If so upon failure by the contractors , whetehr we need to pay gratuity to the labourers in the capacity of Prinicipal employer or 

Wether we should not agree for inclusion of gratuity clause to be incorporated in the new contracts at all.

 

Rgerad, 

Mahesh



Learning

 1 Replies

Kumar Doab (FIN)     18 February 2016

What is opinion of Labor Law Consultant engaged by your compan!

 

Gratuity is a stautory right of labor/employees and statutory obligation of contractor/employer/principle employer.

 


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