A PROJECT REPORT

ON
“CONTRACT LABOUR”
Submitted To The

MOHANLAL SUKHADIA UNIVERSITY

For the
Partial fulfillment of the requirement
For the degree of

“BACHLOR OF BUSINESS MANAGEMENT”

2009-2010
Un
der the supervision of: Submitted By:

Dr. Manisha Lodha Mukul Bhanawat

Asst.professor BBM Final
Year

PACIFIC COLLEGE
MOHANLAL SUKHADIA UNIVERSITY
 UDAIPUR

DECLARATION

I Mukul Bhanawat hereby declare that the project report entitled “CONTRACT

LABOUR” written & submitted by me to VSM in practical fulfillment of the

requirement of our degree of BBM .This is my original work & has not been

submitted for the award of any other diploma or following & has not been

published in any journal magazine

All people who helped me during the preparation of this report are duly

acknowledged. The result that the published here are purely for academic purpose

only

Mukul Bhanawat
 1

ACKNOWLEDGEMENT

The successful completion of any research project requires guidance & help from a

no. people. I was fortunate to have all the support from my teachers as well the

officers of HZL. Where I under took my project. I therefore take this opportunity

to express my profound sense of gratitude to all these who extended their

wholehearted help & support to me in carrying out the project work.

I am sincerely thankful to Mr. P.K.JAIN (Head of HR Department) of HZL for

allowing me to undertake the project & making available all facilities for success

full completion of the study besides me to pursue the study on proper line.

I also like to from my institute side, without these my project cannot be completed.

I would like to thank Dr. N. K. DHING, Director & all the members of faculty,

Pacific College, Udaipur.

I express my heartfelt thanks to Dr.Manisha Lodha & Ms. Aruna Jain for their

adequate guidance.

In end, I also wish to thank all those names have not been mentioned above but

have directly or indirectly helped me in various ways in successfully carrying out

the project.
Mukul Bhanawat

PREFACE

The main motive behind the summer training of the B.B.M. programmed is to
provide the practical aspect of the organization’s working environment. This
training helps us to visualize and realize about the congruency between the
theoretical learning in the college and the actual practices of the management. This
overall project gets us in a insight into a actual corporate world apart from a pure
theoretical environments of the classroom. It allows us to face the world full of ups
and downs and get a glance of the future corporate world in which we are going to
enter.
My summer training project at Hindustan Zinc Ltd., Udaipur is a complete
experience in itself and it has become an inspirable part of my knowledge of
management being learned in B.B.M. programmed. This project is based on the
Contract labour.
S.NO. CONTENT PAGE
NO.
1 Company Profile 5-14
2
Introduction of Topic 15-16
3
Conceptual Framework 17-26

4
Research Methodology 27-36

5
Conclusion & Suggestions 37-41

INDEX
 4

COMPANY PROFILE

Vedanta Resources was listed in London in December 2003.They are

diversified and integrated in 250 metals and mining group with annual sales of
1.9$ billion. Their principle operations are located in India, where they have a
major market share in each of their main metals: aluminum, copper, zinc and lead.
There are also substantial copper operations in Zambia and a copper mine in
Australia.

Vedanta has a strong track record in managing operations and improving

costs and output. Their Indian zinc and copper operations rank in the top quartile
of global cost efficiency.
 In addition to existing operations, Vedanta has extensive expansion projects
across each of the metals. Several major projects announced last year is now being
implemented. With an investment spending of 3.1 billion, half of which has
already been completed.

GROUP STRUCTURE OF VEDANTA

Vedanta Resources
Plc

Madras Aluminum
Konkola Copper Sterlite Industries
Co. Ltd
Mines (India) Ltd.
80%
51% 80%

Vedanta Alumina Hindustan Zinc Bharat Aluminum

Ltd Limited Co. Limited
94% 52% 41%
 COPPER ALUMINIUM ZINC

HINDUSTAN ZINC LIMITED

AN OVERVIEW

Hindustan Zinc Limited is one of India’s leading Zinc-Lead producers and

exceptional in its extent of its technological coupled with vertical integration in
other non-ferrous metals.

HZL was incorporated on 10TH January 1966 as a public sector company after
the take over of the Metal Corporation of India Limited (MCI) to develop mining
and melting capacities to substantially meet the domestic demand of Zinc and Lead
metals.

A private set up entrepreneur the Debari unit; M/s Metal Corporation of

India in the early 1960s.It was taken over by the Government of India in mid
1960s and formed a part of state owned enterprise, M/s Hindustan Zinc Limited.
The controlling share holding interest in the unit of HZL, was sold off by the
Government of India to the present holding company, M/s Sterlite Industries
(India) Limited in the year 2002.M/s Sterlite Industries (India) Limited, is a part of
Vedanta Resources plc, a non –ferrous metals major listed on London Stock
Exchange.

HZL has broad based operations. Its spectrum of activities range from
exploration, mining and ore processing to smelting and refining of lead, zinc,
cadmium, cobalt, copper and other precious metals. It is also an important
producer of Sulphuric acid and rock phosphate. The company is looking forward
to opportunities in gold and other minerals and in new business areas.
In its life span, HZL has endeavored to aim for a steady improvement in its
operations through forward planning, excellent team of research and development
and technology updating. As a result, the company has almost taken the country to
the level of self-sufficiency in zinc.

VISION
The corporate planning group (CPG) in the process of formulation of the Period
2006-2007 conducted situation analysis by scanning sociopolitical economy and
technological environmental and adopted the VISION as:-

“Be a major natural resource company with diversified business leveraging the
competitive advantage offered by its mineral port folio and competencies
including best management practices based on efficiency, Total Quality
Management concepts and trust.”

MISSION

• To become a significant global producer of Zinc and to remain as the

Dominant market leader of Zinc and Lead in India.
• To avoid avail opportunities to diversify into other businesses, synergic
With competencies.
• To maximize satisfaction of its stakeholders.
• Be the largest integrated producer in the world with a zinc-lead metal
capacity of one
Million tonnes by 2010.
• Be the lowest cost zinc producer on a global scale, maintaining market
leadership.
• Be innovative, customer oriented and eco-friendly, maximizing stake-holder
value.
 8

KEY OBJECTIVE

• To increase smelting capacity as to maintain and enhance market.

• To locate world class Lead and Zinc deposits by grass- root explorations
either independently or through joint venture.
• To diversify into other minerals based industries and precious metals and
Important infrastructure sectors like power.
• To attain international levels of productivity and quality standard through
HRD efforts and intense R&D and technology up graduation in mining
and smelting.
• To utilize technologies for optimizing energy assumptions.
• To adopt the best international practices for environmental protection and
Safety.
• To strengthen the image as the organization with commitment and to
excel amongst all concerns
9
 10

DEBARI ZINC SMELTER

GENERAL INTRODUCTORY INFORMATION

Name and Location = Debari Zinc smelter,

Village Debari,
Udaipur, (Rajasthan)

Inauguration = February 1968 (39 years)

= Expanded December 1976,
April 1985, and December 2000.

Products = Capacity (TPA)

Refined Zinc = 88000

Sulphuric Acid = 120000

Cadmium = 250

Process = Hydrometallurgy

Technology
Supplier = Zurgi, Germany, Outocompu,
Finland, Austrania- de- zinc,
Sweden.

11

Covered area (ha) = 37.6

Total Plant
Area (ha) = 200.3

No. Of Direct
Employee = 921

SALIENT FEATURES OF EXISTING CAPTIVE POWER PLANT

PRTICULARES DESCRIPTION

Capacity of Power Plant 29.6 MW (4*7.4MW)

Fo/ LSHS based generator

Process Adopted Sets supplied by M/S
Wartsila, Finland.

Raw Material Furnace Oil / LSHS

 12

Brief History:-
The Debari unit was set up by a private entrepreneur, M/s. Metal
Corporation of India in the early 1960. It was taken over by the Government of
India in mid-1960s and formed part of state-owned enterprise, M/s. Hindustan
Zinc Limited; Debari Zinc Smelter was commissioned in the year 1968.

The controlling share holding interest in the unit was sold off by
Government of India to the present holding company, M/s. Sterlite Industries
(India) Limited, is a part of Vedanta Resources plc, a non ferrous metals major
listed on London Stock Exchange.

Certification:-
The Debari unit has been accredited with following main international
certification:-
ISO 9001: 2008,
ISO 14001: 2004,
OHSAS 18001: 2007
SA 8000-2008

Location: -
 Debari is located at a distance of about 12 KMs East of Udaipur (Rajasthan)
India on the National Highway No. 17.

The distance to main cities in India by road are: -

Udaipur (Rajasthan) - 12 Km,
Jaipur (Rajasthan) - 400Km,
Mumbai - 800Km.
As such, Debari is well- connected by road to all important cities in India.

13

Corporate Social Responsibility:-

The management of M/s. Hindustan Zinc Limited actively undertakes

schemes for development and upliftment of community and society around its
areas of operation. It also support schemes initiated by the State Government for
social upliftment. Such schemes include:-

• Financial support for drinking water, education, health-care and

construction of class- rooms under the Guru Golwalker Scheme initiated by
the Rajasthan State Government.
• Support for Mid-day Meals programmed of the State Government for
Primary School Going Children.

The resulting good relation with the society in the surrounding minimizes friction
with them and perils associated with it.
 14

Introduction of Contract Labour

CONTRACT LABOUR (1970)

“CONTRACT LABOUR” is a term applied to labour as employed to perform

some work, who has no direct employer – employee relation with the party called
principal employer, for whom that work is ultimately done.

The parties who act as intermediary between the principal employers and the
worker are called as the “contractors” and their relationship with the principal
employer is governed by contract between them.
Essential ingredients of contract labour

1. That the employment may be or through a contractor as define section 2(1)

(c) of the act.

2. That he must be a “workman” as defined in section 2(a)(i) of the act.

3. That he must be employed in or in connection with the work of the

establishment. It follows that any person who is in some manner or other
connected with the work of the establishment would be contract labour.

4. That the employement may be with or without the knowledge of the

principal employer.

5. There is no warranty to impose that it is only where the contractor obtains a

license. Under the act that workmen employed through him will be contract
labour.

15

AIMS & OBJECTIVES:-

The aims or objective of welfare activities are:

• Humanization - to enable workers to enjoy a richer life.
• Economic - to imporve the efficiency of workers.
• Civic - to develop among them a sense of responsibility and dignity and
thus mark them worthy citizen of the nation.
• To fulfill the future needs and aspirations of labour.
• To reduce labour turnover and absenteeism.
• To create an atmosphere of goodwill between labour and management
and also between mangement the public.
 16

Conceptual Framework

Contract Labour Management System

 Standard Operating Procedure for Contract Labour
Management System

I. Ensuring issuance of work order to the party.

II. Ensuring safety training of the labours indicated in the list submitted by
the contractors for engineering as a contract labour to carry out the work.

III. Receipt of the recommendation of HOD/ section in charge for the

preparation of the Gate Passes of the labours undergone for safety training
and submission of such list by contractors in contract cell.

IV. Ensuring PF code no. of the contractor by contract cell & then filling up
of the nomination form of provident fund from contract labours.

V. Ensuring ESI code no. of contractors by contract cell and then filling up
of the relevant declaration forms from contract labours.

VI. Ensuring Form 30 of Medical Fitness Certificate issued by the

Government Doctors in respect of each labours.

VII. Ensuring credentials of labours from list of undesirable person.

VIII. Ensuring the declaration from the contractors about good character and
antecedents of labours.

IX. Ensuring the Photos of labour and thereafter preparation of Gate Pass.

17

License by the contractor

• The act casts an obligation on every contractor to take license issued in

that behalf by the licensing officer.
 • No contractor to whom the act applies, shall undertake or execute any
work through contract labour except under and in accordance with a
license issued in that behalf by the licensing officer.

• An application for grant of license is to be made in the prescribed form and

shall contained the particulars regarding the location of the establishment ,
nature of process , operation or work for which contract labour is to
employed and such other particular as may be prescribed.

• Thus, engaging employees through the contractor without obtaining

license or registration by the contractor will be violative of the provision of
contract labour.

• It is clear that not only a contractor but also a sub-contractor who comes
within the definition of the term “contractor” in section 2 , clause© is
bound to obtain a license under section 12, sub section (1), before he can
undertake or execute any work through contract labour.

Forms and Terms & Conditions of license

1. Every license granted under sub section (1) of section12 shall be in form 6.

2. Every license granted under cub rule (1) or renewed under rule 29 shall be
subject to following conditions namely:-

a) The license shall be non- transferable.

b) The number of workmen employed as contract labour in the establishment

shall not, on any day, exceed the maximum under specified in the license.

18
3. Save as provided in these rules, the fees paid for the grant, or as the as a case
may be, for renewal of the license shall be non-refundable.
4. The rates of the wages payable to workmen by the contractor shall not be
less than the rate prescribed under the minimum wages act ,1948(11).

5. In cases where the workmen employed by the contractor perform the same
or similar kind of work as a workmen directly employed by the principal
employee of the establishment, the wage rates , the holidays , the hours of
work and the other conditions of service of the workmen of the contractor
shall be same as applicable to the workmen directly employed by the
employer of the establishment on the same or similar kind of work.

6. In other cases the wage rate ,holidays, hours of work & condition of the
service of the workmen of the contractor shall be such as may be specified
in the behalf of the chief labour commissioner (central)

7. In every establishment where 20 or 20 more women are ordinarily employed

as contract labour , there shall be provided two rules of reasonable
dimensions for the use of their children under the age of 6 years.

8. One such room shall be used as a play room for the children and the other as
bed room for the children.

9. The license shall notify any change in the number of workmen or the
conditions of work to the licensing officer.

10. No female contract labour shall be employed by the contract labour before
6.00 am or after 7.00 pm.

Validity and Renewal of License

a. Every license granted under rule 25 or renewed under 29 shall remain

in force for 12 month from the date it is granted or renewed.

b. Renewal contractor shall apply to the licensing officer for renewal of

the license.
 19

Contracting of catering services

• Based on representation made by the contractor vide the above said letter
dated________ , ABC & company has proposed to give and the contractor has
accepted the said proposal for providing catering services to ABC & company
at it’s factory / plant office at _________as per the terms and subject to such
conditions as enumerated in this agreement.

MODEL AGREEMENT BETWEEN PRINCIPAL

EMPLOYER AND THE CONTRACTOR

⇒ Performa suggested for an agreement between employer and the contractor

(general)

o This agreement made at ___________ on this ________ day of ________

20____ between ABC & company having its registered office at ________
hereinafter referred to as the “company” of the other party.

o Whereas the company is engaged in the trade / business of manufacture of

__________ whereas this work can better be executed by an independent
contractor and the company is desirous of giving out the work to some
reliable person on contract basis.

⇒ Performa suggested for an agreement between principal employer and the

contractor for loading and uploading.

o This agreement is made on this ___________________ day of

__________between M/S ________________ hereinafter (referred to as
“contractor”) which expression shall, unless repugnant to the context or
meaning thereof, include their successors and assigns of the other part.
 ⇒ Performa suggested for an agreement between an employer and the security
contractor.

o This agreement made at ___________ on this__________ day

of______20___by and between
o ABC limited, a company incorporated under the provision of the
companies act , 1956 and having its registered office at ____________
represented by _____________hereinafter referred to as the “first party” which
expression shall unless repugnant to the subject or context shall mean and
include its successor and assign of first part.
20
o
o M/S ___________ a company incorporated under the provision of the
companies Act, 1956 having its office at ____________ represented by
___________ hereinafter referred to as the “second party” of the second part.

⇒ Agreement between owner and building contractor for construction of

building.

o This agreement made on this ___________ day of ________ between “AB”

of ____________ hereinafter called the owner of the part and “CD” of __ etc,
hereinafter called the contractor of the other part.

o Whereas the owner is desirous of erecting a building on the plot of land

measuring ____________ sq. meters situated at _________ more particularly
described in the site plan marked “A” attached here to.

⇒ Performa suggested for an agreement between a company and house

keeping contractor for improvement of the environment in the premises of the
company.

o This agreement of house keeping and improvement environment of the

premises no. __________ at _________ address _____________ made
at________ on the ___________ day of ________ 20___ between shri
_________(hereinafter called as “contractor” which expression shall unless
repugnant to the context or meaning thereof, mean and include its successors
and assign of the one part on other part.

⇒ Agreement between employer and transport contractor

o This agreement is made this__________ day of _______ 20__ between
MS/S ABC__________ (employers name) hereinafter called the second party
to as agreed transport the employees of the company. It has become expedient
to enter into an agreement between the parties on.

⇒ Performa suggested for an agreement between an employer and the

contractor Act, 1956 and having its registered office at _________ and
operational office at ___________ (hereinafter referred to as “ABC &
company”) of the first part.

o D & company, a sole proprietorship concerned partnership firm / private

limited company, having its principal place of business at ___________through
its proprietor Mr. _____________ /its partners _________ (hereinafter referred
to as “contractor”) of the second part.

21

Registers and Records

1. Register of contractor: Every principal shall maintain in respect of

each register establishment a register of contractor in form 12.

2. Registers of person employed: Every contractor shall maintain in

respect of each registered establishment where he employs contract labour a
register in form 12.

3. Employment card:

a) Every contractor shall issue an employment card in form 14 to each

worker within 3 days of the employment of the worker.

b) The card shall be maintained up to date and any change in the

particulars shall be entered therein.

4. Service certificate: on termination of employment for any reason

whatsoever the contractor shall issue to the workman whose services have
been terminated a service certificate in form 15.
5. Muster roll, wages registers, deduction register and overtime
registers: Every contractor shall in respect of each work on which he
engages contract labour-

a) Maintain a muster roll and a register of wages in form 16 and

form 18 respectively: provided that a combined register of wage – cum-
muster roll in form 18 shall be maintained by the contractor where the
wage period is a fortnight or less;

b) Maintain a register of deduction for damage or loss, register

of fines and register of advances in form 20, form 21, and form 22
respectively;

c) Every contractor shall, where the wage period is one week or

more, issue wage slip in form 19, to the workmen at least a day prior to the
disbursement of wage;

d) Where no deduction or fine has been imposed or no overtime

has been worked during any wage period, a ‘nil’ entry shall be made
across the body of the register at the end of the wage period indicating also
in precise terms the wage period to which the ‘nil’ entry relates, in the
respective registers maintained in form 20, 21 and 23 respectively.

22

Wages for contract Labour

a. The contractor shall fix wages period in respect of which wages shall be
payable.

b. No period shall exceed one month.

c. The wages of every person employed as contract labour in an

establishment shall be paid before the expiry of the 7th day and in other
cases before the expiry of 10th day after the last day of the wage period in
respect of which the wages are payable.

d. Where the employment of any worker is terminated by or an

behalf of the contractor the wages earned by him shall be paid before the
expiry of the 2nd working day from the day on which his employment is
terminated.
e. All payments of wages shall be made on a working day at the
work premises and during the working time and on a date notified in
advance and in case the work is completed before the expiry of the wage
period , final payment shall be made within 48 hours of the last working
day.

f.Wages due to every worker shall be paid to him or to other person

authorized by him in this behalf.

g. All wages shall be paid in current coin or currency or in both.

h. Wages shall be paid without any deduction of any kind except

those specified by the central government by general or special order in
this behalf or permissible under the payment of wages act 1936.

i. A notice showing the wages period and the place and time of
disbursement of wages shall be displayed at the place of work and copy
sent by the contractor to the principal employer under acknowledgement.

j. The principal employer shall ensure the presence of his authorized

representative at the place and time of disbursement of wages by the
contractor to workmen and it shall be the duty of the contractor to ensure
the disbursement of wages in the presence of such authorized
representative.

23

k. The authorized representative of the principal employer shall

record under his signature a certified at the end of the entries in the register
of wages. As the case may be, in the following form-

“Certified that the amount shown in column no……… has been

paid to the workmen concerned in my presence
on_____________ at ______________”.

Welfare and Health of Contract Labour

1.Rest Room: In every place wherein contract labour is required to half at
night in connection with the working of establishment to which the act
applies and in which employment of contract labour is likely to continue
for 3 months or more, the contractor shall provide and maintain rest rooms
or other suitable alternative accommodation within which 15 days of the
coming into force of the rules in the case of existing establishment and
within 15 days of the commencement of the employment of contract
labour in new establishment.

a) Separate rooms shall be provided for women employees.

b) Effective and suitable provision shall be made in every room for

securing and maintaining adequate ventilation by the circulation of fresh
air and there shall also be provided and maintained sufficient and suitable
natural or artificial lighting.

c) The rest room or other suitable alternative accommodation shall be

so constructed as to afford adequate protection against heat, wind, rain and
shall have smooth, hard and impervious floor surface.

d) The rest room or other suitable alternative accommodation shall be

at a convenient distance from the establishment and shall have adequate
supply of wholesome drinking water.

Canteen: In every establishment to which the act applies and

wherein work regarding the employment of contract labour is likely to
continue for 6 months and wherein contract labour numbering 100 or more
are ordinary employed an adequate canteen shall be provided by the
contactor.

24
a) The canteen shall be maintained by the contractor or principal
employer as the case may be in an efficient manner.

b) The canteen shall be sufficiently lighted at all times when any

person has access to it.
 First Aid Facilities: There shall be provided and maintained by the
contractor so as to be readily accessible during all working hours a first aid
box equipped with prescribed contents at every place where contract
labour is employed by him.

Registration of establishments employing contract labour

• Appointment of registering officers:- the appropriate govt. may , by an

order notified in the official gazette:-

oAppoint such persons being gazette officers of government , as it thinks

fit to be registering officers for the purpose of this chapter ; and

oDefine the limits within which a registering officer shall exercise the
powers conferred on him by or under this act.

Registration of certain establishment

 every principal employer of an establishment to which this

act applies shall , within such period as a appropriate government
may by notification in the official gazette , fix in this behalf with
respect to establishment generally or with respect to any class of
them , make an application to the registering officer in the
prescribed manner for registration of the establishment.

Provided that the registering officer may entertain any such

application for registration after expiry of the period fix in this
behalf, if the registering officer is satisfied that the applicant was
prevented by sufficient cause from making the application in time.

 If the application for registration is complete in all respects, the

registering officer shall register the establishment and issue to the principal
employer of the establishment a certificate of registration containing such
particulars as may be prescribed.

25
Revocation of registration in certain cases
 If the registering officer is satisfied, either on a reference made to him in
this behalf or otherwise, that the registration of any establishment has be
obtained by misrepresentation or suppression of any material act, or that for any
other reason the registration has become useless or effective and, therefore
require to be revoked, the registering officer may, after giving an opportunity to
the principal employer of the establishment to be heard and with the previous
approval of the appropriate govt. , revoke the registration.

Effect of non - registration

No principal employer of an establishment to which act applies, shall-

 In the case of an establishment required to be registered under section 7

but which has not been registered within the time fixed for the purpose
under that section

 In the case of an establishment the registration in respect of which has

been revoked under section 8.

Prohibition of employment of contract labour

 Not with understanding anything contained in this act, the appropriate

govt. may, after consultation with the central board or the case may be , a
state board , prohibit , by notification in the official gazette, employment
of contract labour in any process , operation other work in any
establishment.

 Before issuing any notification under sub-section (1) in relation to an

establishment, the appropriate govt. shall have regard to the conditions of
work and benefits provided for the contract labour in that establishment
and other relevant factors.
 26

RESEARCH METHODOLOGY

A research design in the arrangement of conditions for collection and analysis of

data in a manner that aims to combine relevance to purpose with economy in
procedure. In fact research design is the conceptual structure with in research
constitutes the blue print for the collection measurement and analysis of data.

The research design which I used was though convenience basis. It was non
probability sampling technique.

OBJECTIVE OF RESEARCH

The objective of research is following:-

1. The study of the present procedure related to employees welfare in

HZL.
2. To know the responses of workers related to welfare.

DATA COLLECTION

There are basically two methods of collection of data.

1. Primary data collection

2. Secondary data collection

1). SECONDARY DATA

Published data are secondary data .i took some information by the book
published at the HZL about the welfare activities of hzl.
 Name of the books
1) Contract labour act 1970
2) Standing order
3) Bare act with short comments
4) Factory act 1948
5) ESI and PF act

27

2). PRIMARY DATA

In this research project primary data in the labour of HZL. There are of three
grades.
a) Top level
b) Middle level
c) Lower level

The sample size is taken of 30 labours. The responses of labour were through
questionnaire. In this I took 20 questions. Analysis was both theoretical and
statistical graphical representations were considered.

Type of research – analytical research

In analytical research, on the researcher has to use facts and information already
available, and analyze this to make a critical evolution of material. in my project I
m using analytical research the company has given me .

Sample size- sample size is taken is 30 person.

 28

HR DEPARTMENT IN HZL:-

 TIME OFFICE:- The main functions of this department are as:-

 Maintaining attendance record

 Marinating leave record
 Maintaining over time wages record for workers & executives
 Making salary for the staff and workerss

CONTRACT LABOUR CELL

Before Entering:

1) Copy of the work order/ LOI

2) Party should have their own PF/ ESI Account No. The proof of the same to
be submitted to HR Department.

3) For entering state labour, they have to submit certificate in which they have
to mention from how long this labour is staying in Rajasthan.

4) Gate passes will be issued to main contractor only.

5) In case the contractor labour is more than 19, contractor is required to obtain
Labour License from the Licensing authority.
 6) On submitting the application of the contractor, form-5 will be issued to the
contractor for labour license.

Gate Passes:

On submission of following documents gate passes will be issued:

1) Labour license copy to be submitted if applicable.

2) ESI forms to be filled up along with two photographs if the employed

person is getting salary less than Rs. 10,000/-

 If the employed person is getting salary more than Rs. 10,000/- they must
be covered under group insurance and documentary proof of the same is
required to be submitted to HR before proceeding for gate passes.
29
3) Medical Certificate in form 30 for individual person issued from
“Medical Officer in charge All Government Dispensaries.

4) Register for gate passes.

5) You have to bring the entire person at contract labour cell for their
photograph (between 8.00AM to 4.30 PM) along with his particulars after
that computerized gate passes will be issued. The following colour
codification is presently in force

a) Yellow-Pyro – Colour Strip

b) Brown-Hydro 1 – Colour Strip
c) Green – Hydro 2 – Colour Strip
d) Blue – CPP – Colour Strip

6) One/Two person are to be authorized to deal with HR deptt. The authorized

person should be aware about labour legislation and compliances.

7) While in-coming/out going a complete list of the workers(two copies) to be

entered is to be handed over to security gate and one copy duly certified by
security in charge is to be get signed from SBU and handed over to
Contract labour cell.

Apart from the above if any person is detained on overtime in any of the
shift the complete list of such person at the end of every shift is to be handed
over by your supervisor at the security gate.
 8) Shift-wise daily attendance for total number of employees should be
Submitted to HR Department on the next day morning before 12
Noon.

9) Contractor should issue attendance card to each of the labour, which is to be

filled up by their site supervisor in terms of day present, overtime if any.

10) If any of the Contractor person required to enter into the factory premises
with mobile he has to request respective engineer in charge in written
and submit to HR for mobile permission. But in no case any of the
people is allowed to carry mobile inside the premises below supervisory
level.

11) For issuance of vehicle gate pass, contractors are required to submit (1)
Registration
copy (2) Insurance copy (3) Driving license of the driver (4) Vehicle fitness
certificate.

30

Labour Payment:

1) Preparation of the payment sheet- payment sheet of the contract labour is to

be prepared in accordance with the prescribed format only.

2) Labour is to be disbursed before 7th of every month at contract labour cell.

3) Copy of the payment sheet, attendance sheet is to be submitted to contract

cell on or before 10th of every month.

4) On expiry of the contract, contractor has to pay all fringe benefits to their
labour like leave, bonus & final payment.

5) Whenever contractor removes any contract labour, they shall make full and
final payment of HR representative.
Statutory Obligations:

1) Monthly deposition of ESI – 17th of every month, otherwise gate passes will
not be renewed. After deposition of ESI, proof of deposition is to be
submitted to contract labour cell.

2) Deposition of PF challan along with complete details i.e. individual PF

no. and amount deposited in the account to be submitted by 30th of every
month.

3) Half yearly ESI return in the month of April& October soft copy & hard
copy.

4) Half Yearly return to be submitted to DLC in the month of January 7 July

with a copy to HZL.

5) Deposition of PF challan along with complete details i.e. individual PF no.

&amount deposited in the account to be submitted by 13th of every month.

6) Any accident to be reported immediately along with completely details of

the person.

7) ESI payment proof of PF payment wages payment should match with the
attendance of your employees.

8) Date of start contract to be informed to contract labour cell before start of

work.

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FINAL HR CLEARNCE AFTER COMPLETION OF WORK

1) Indemnity bond on 100 rupees stamp paper stating that you have compiled
with all the statutory obligations and future liabilities if any will be taken
care by you.

2) Proof of final payment and all clearance wrt to leaves, bonus etc if any to be
submitted to HR deptt.
 Registers and records to be maintained by each contractor:
(As per Rajasthan contract labour –R&A Rules)

1) Register of person employed in form 9.

2) Employment card in form 10 to be given to each worker on the first day

of the employment. The contractor is to ensure that the card is carried by
the person at the work. The card should update duly.

3) Service certificate in form 11 is to be issued by the contractor to the

worker when his employment is terminated for any reason whatsoever.

4) Contractor must maintain a muster roll in form 12 and register of wages

in form 13 or a muster roll com wage register in form 14.

5) Wage slip to be issued in form 15.

6) Register of deduction in form 16.

7) Register of fines in form 17.

8) Register of advance in form 18.

9) Register of overtime in form 19.

10) To display abstract of the Act and rules in Hindi & English.

11) Half Yearly return in form 20 in duplicate to reach the licensing

Officer within 30 days from the end of half year.

12) Attendance card to be issued each & every employee.

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As per Factories act

1) Form 16 register of leave with wages.

2) Form 17 Leave Register.

 3) Form 18 Nomination declarations.

4) Form 19 Health Register.

5) Workmen duty rotation chart.

6) Form 30 Fitness certificate

As per ESI Act

1) Form 7 Register of employee

As per PF Act

1) PF deduction registers.
2) Form 2 (Revised): For own PF A/c.
Migration certificate as and when required.

Administration

Under administration in CLZS following work done:

 To provide all stationery & printing materials.

 To give daily duty schedules to drivers.
 To arrange of vehicles like jeep, buses etc.
 Dispose.
 To provide adequate furniture.
 To take licenses adjustment at the time of accidents.
 Misc. contract as photography, repairing of furniture.
 To keep public relation.
 To provide guest house.
 Allotment of quarters.

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DATA ANALYSIS
Leave entitlement

Type of leave Workmen

Privilege leave (P.L.) 28(accum.270)

Sick leave (S.L.) 10(accum.120)
Casual leave (C.L.) 08
Operational holiday 02
Special disability leave Full period of unfitness.
12 weeks
Maternity leave 15 day for every
Half pay leave in case of TB / completed year of
Cancer / leprosy Service.

Advance half pay leave 6 months

Extra ordinary leave / WP 12 days
Quarantive leave 30 days
Special casual leave
1. vasectomy 06 days
2. tubectomy 14 days
3. to employee whose wife 17 days
undergoes tubectom
4. IUD insertion 01 days

Special leave as per requirement

34
 Death Benefits (For Workmen):

The following claims / benefits are admissible to an employee’s nominee in

case of the
Death of the employee while in service:

• SALARY / WAGES: - Up to the last day of work.

• LEAVE ENCASHMENT: - FULL leave encashment subject to maximum

limit provide in the leave rule for accumulation of privilege leave.

• TRAVEL ALLOWANCES:- Actual cost of the class to which the

decreased employee is entitled from the place of duty to yhe home town or
the new place where the dependent members of family intend to settle
anywhere in India whichever is less on the same term as for serving
employees on transfer. This should be available within 6 months of the
death of the employee.

• CPF: - Total amount in the employees account in CPF along with interest
therein.

• COST OF TRANSPORTATION OF PERSONAL EFFECT: - The cost

of transportation of personal effect and transportation charges of the
conveyance shall be admissible to the family of the employee who dies
while in service as per rules of the TA.

• DIDTURBANCE ALLOWANCES: - The family of the deceased

employee will be eligible for disturbance allowances which shall be 1
month’s pay subject to maximum of Rs. 14250/- and min. of Rs. 6000/-.

• BONUS: - Bonus for the accounting year in which the employee died, shall
be payable to his nominee’s and when it becomes due.

• PENSION: - Pension shall be payable to the nominee as per rule.

• DEPOSIT LINKED INSURANCE SCHEME: - Rs.62000/- payable

under scheme.

• DEATH BENEFIT SCHEME: - Applicable to workmen w.e.f. 1.1.2001.

For this purpose workmen will contribute Rs 8 per month.
 35

AGE BENEFIT

Up to 40 years of age Rs. 1,30,000/-

Above 40 years and below 45 Rs. 1,10,000/-
Between 45-50 years Rs. 90,000/-
Between 50 retirement age Rs. 70,000/-

• If death occurs as a result of accident arising out of land in course of

employment, amount of compensation payable under workmen’s
compensation act in case of workmen shall be paid.

• RETENTION OF QUARTERS: - 3 month or till the date of academic

session his school going children whichever is later.

Maternity Benefits:

The Company provides certain maternity benefits to its women employees such
as maternity leave of 12 weeks. The wages during that period are also paid to
the employee.
 36

FINDING

 According to welfare acts many facilities are given to the employees of HZL
which are following:

1. Canteen facilities.
2. Dispensary.
3. Toilets, Drinking, Water & Heater facility
4. Rest Room.
5. Sitting facilities.
6. Welfare officer.
7. Medical Reimbursement.
8. Ambulance Room.

 Brand reputation in global market.

 Stable operating cost despite sector-wide price pressure.

 Good Reputation Global Market, HZL group is famous in in all over the
world.
 Well-equipped R & D team.
 Modern machinery with latest techniques.
 Not depended for power & water. HZL has its own power generation D.G.
{diseal generator}plant unit with 14.5 M.W. capacity Water is also available
 in plenty at company's own campus & presently company has adequate
water storage capacity.
 The company continues to deliver projects ahead of schedule and within
budget, in a challenging environment.
 Growing turnover and profitability.

 Skilled financial management, good credit control and few bad debts.

 There are three mines & smelters of Vedanta Group in Rajasthan.

 Process adopted = Fo / LSHS based generator

Sets supplied by M/S Watseka, Finland.

37

 They use Furnace oil & LSHS as raw material.

 It has been accredited with following international certification =

1. ISO 9001:2008
2. ISO 14001:2004
3. OHSAS 18001:2007
4. SA 8000:2008

LIMITATION
 There is ventilation problem for passing the hot air during the process.
 There is amount of unskilled labour appointed in contract labour.
 It is not economic in case of labour.
 There is not proper training facility for labour.
 There is not a proper record & register maintain by contractor.
 Many times labours do not get their proper wages as per their work.
 Till old technique & machinery used.

SUGGESTION
  Use more modern technique & machinery.
 Develop more area near by the plant.
 Give good training facilities to labours.
 Contractor should fulfill need & aspiration of labour.
 Reduce labour turnover & absenteeism.
 Giving proper safety facility.
 Giving proper arrangement facility to labour’s children.
 Should maintain proper record & register maintain by contractor.
 Giving proper wages to labour as per their work ability.
 Sufficient no. of ventilation should be there.

38

CONCLUSION

It was a great experience to be there in HZL for my practical training. Like every
good thing, it had come to end and so it did. Though I am feeling sad at this point
while leaving from here but I do have the great memories of time spent here.

During the last 4 weeks, I certainly learnt a lot every aspect of this field, right from
the working environment to the human nature. Relating to my branch. I certainly
learnt about the nature of people and various training.

Bibliography

• www.google.co.in
 • www.wikipedia.com
• www.hzlindia.com
• www.hzlconnect.com

• CS module “Economic and Labour Laws”

• Research Methodology – C.R. Kothari

39

(Questionnaire Worker)

A. Personal Information:
a) Name ………………………..Ecode …………..
b) Age …………………………………………….
c) Cast / Religion …………M.status ……………..
d) Children: Son ………….Daughter ……………
e) Other …………………………………………..

At the time of joining At present

Education
 Department
Post
Grade
Monthly salary

B. Other Information:

2. Is there welfare officer appointed in your plant?

Yes ( ) No ( ) don’t know ( )

2. If yes than are you satisfied with their work

Yes ( ) No ( )

3. Are you covered under ESI?

Yes ( ) No ( )

4. What does the firm do improving your living standards?

………………………………………………………….

5. Are you satisfied with the welfare local tiles given by the firm? Give your
suggestion.
……………………………………………………………

40
6. Are you satisfaction with health officer's service?
Yes ( ) No ( )

Health Officer's Service

7. Give your suggestion for improving health facilities.

……………………………………………………………………….

8. Is their safety officer appointed in your plant?

Yes ( ) No ( ) don’t know ( )

9. Is there safety committee established in you plant?

Yes ( ) No ( ) don’t know ( )
10. Are you given the training relating to safety?
Yes ( ) No ( )

11. Do you be aware of safety during the work?

Yes ( ) No ( )

12. Which leave are you given & how much?

PL ( ) Leave Medical ( ) CL ( )

13. Are you satisfied with the rest hours given during every shift?
Yes ( ) No ( )

14. Other information which you want to give?

…………………………………………………………….

*******

41