Session- 2010- 2015 Labour Law Synopsis Submission on: Contract Labour and Outsoursing of Work

Submitted toProf. Priya Mishra (COLS)

Submitted byMitali Chaure 500012391 BBA.LLB (8 sem) Roll no. 31

Statement of Problem
Is outsourcing an end to labour litigation?

Abstract
Contractualisaiton of labor and outsourcing of work of permanent nature must be allowed. The contract labor and outsourcing of work is resulting in exploitation of the labour and payment of wages and benefits to such workers is very poor as compared to the wages and benefits available to the regular workers of the industry/establishment. A major part of the labour litigation pending in the courts today pertains to contract labour. An individual employee may not have the power to bargain, but when it comes to litigation where a number of contract workers are employed, the stakes are higher. SO, My ambition is to overcome the outstanding labour litigation & to get contract labour free of his legal responsibilities towards an employee upon outsourcing in India. The Project address readers sympathetic to the project and it presumes a basic knowledge of the topic.. At the end of my inquiry, I will suggest that if outsourcing is properly channelized by companies, including maintenance of proper records and compliances, it can be a solution to many employee-related issues.

Identification of the Issues

1) Is outsourcing an end to labour litigation? 2) Does the contract Labour get free of his legal responsibilities towards an employee upon outsourcing?

Objective and the scope of the research

The law governing contract labour is Contract Labour (Regulation and Abolition) Act,1970. Principal employers employing contract labour must know that the responsibility to see that the employees are getting the prescribed minimum wages, provident fund, insurance, and other statutory benefits, is theirs. If these are not complied with, the labour authorities can hold the principal employer responsible and the consequences can be serious. A major part of the labour litigation pending in the courts today pertains to contract labour. An individual employee may not have the power to bargain, but when it comes to litigation where a number of contract workers are employed, the stakes are higher. The basic litigation pertaining to almost every type of sector in India is regularisation and pay parity. Earlier this was a grey area. However, in the past couple of years, the courts have clarified the status of contract labour and considering Indias economic problems, have made it easier for companies in some manner. Only if the contract labour system is found to be sham, camouflage, or if there

is prohibition to employ contract labour in certain operations, will workers be entitled to regularisation.

Research methodology adopted

This article is a literature study. The literature on contract Labour is marked by a lack of crossreferences between the two opposing views of the issue. The first part of the article is theoretical, so I ask my readers to please endure it, and hopefully it will prove worthwhile once applied to the reality. I will not, though, give a full account of the controversy surrounding the same topic, but merely highlight parts where it relates to my inquiry.

Probable Outcome
The outcome of the issue is that if outsourcing is properly channelized by companies, including maintenance of proper records and compliances, it can be a solution to many employee-related issues.

Capterization
1) 2) 3) 4) 5) 6) 7) Introduction Problem Method and Literature Historical Backgroung History of Contract Labour Information as are a resource Committees and Recommendations a) The Bombay Textile Labour Enquiry Committee (1938) b) The Bihar Labour Enquiry Committee (1941) c) The Rega Committee (1946) 8) Contract Labour v. Outsourcing 9) International Practices 10) Industry Perspective & Recommendations 11) Landmark Judicial Pronouncements 12) Contract Labour: New Perspectives 13) Conclusion

Survey of the existing Literature

1)Report of the National Commission on Labour; 2002 2) Summary records of the 42nd & 43rd session of the Indian Labour Conference. 3) Contract Labour: Govt Gains More; The Econmic Times, March 10, 2011. 4) Report by Executive Recruiters Association and Ernst & Young, 2012