SUMMER INTERNSHIP PROJECT REPORT

On

“STUDY OF ACQUISITION PROCESS FOR CONTRACT LABOUR”

For

“KALYANI TECHNOFORGE LTD, MUNDWA”

By

“ADSUL YOGESH”

Under the guidance of

“PROF. DEEPALI DESAI”

Submitted to

"SAVITRIBAI PHULE PUNE UNIVERSITY"

In partial fulfillment of the requirement for the award of the degree of

Master of Business Administration (MBA)
2019-20

Through

SURYADATTA EDUCATION FOUNDATION’S

SURYADATTA INSTITUTE OF MANAGEMENT & MASS COMMUNICATION (SIMMC)
PUNE- 411021
 DECLARATION

I, Yogesh Adsul student of Suryadatta Institute of Management and Mass Communications hereby

declare that the Internship Report titled” CONTRACT LABOUR MANAGEMENT AT

KALYANI TECHNOFORGE LTD” is submitted by me in partial fulfillment of the

Requirement for the award of the degree of Master of Business Administration under the guidance

of “Prof. Deepali Desai” (Internal Guide) and “Vishal Sarode” (Company Guide).
I confirm that this Report has not been submitted to any other University or Institution in full or
in part for the award of MBA Degree.

Place: Kalyani Technoforge Limited ,Mundwa ,Pune.

Signature,

Yogesh Adsul
CERTIFICATE FROM THE COMPANY
CERTIFICATE FROM THE INSTITUTE
 ACKNOWLEDGEMENT

This is a matter of great pleasure as well as great privilege and pride for me to present this
project report. This project became possible only due to full cooperation and sincerity
provided by the Company and Institute as well. I am indebted and thankful to the
management of KALYANI TECHNOFORGE LTD for providing me an opportunity to
work in this esteemed and flourishing organization.

Research Report is a combined effort including this one also, so I would like to thank to all
who have helped me completion of this report purposeful.

Further I would like to thank to my faculty, my guide for their valuable support and advices
which helped me a lot in completing this project purposeful.
 TABLE OF CONTENTS

Chapter Content Page Number

1. Executive summary 8

Introduction 10

Industry profile 11-22

Objectives of Internship 23

2. Company profile 26

Products/ services offered 27

Customers of product 28

SWOT analysis 29

3 Activity performed during the internship 31-33

Contract Labour Management 34

Applicable Rules & Act 35

Description of the Acts. 36-39

Applicability of Acts & Rules pertaining to Tata 40-41

Steel work

Condition of service Of Workmen of the 42-45

Contractor
4. Key learning element 47

Gaps reviewed in the act of Kalyani Technoforge LTD 48-49

Responsibility of employer (contractor) 50-53

Conclusion 54

Recommendation 55-56

5. Bibliography 57

6. Glossary 58

LIST OF TABLES

Table No. Table Name Page Number

Table 2.1 Primary product and their customers 27

Table 4.1 Applicability of principal employers and the gaps 48-49

Table 4.2 Gaps reviewed with the contractors at Kalyani Technoforge 51-53
LTD
 EXECUTIVE SUMMARY

Contract labour management is a growing area in most of the organizations. Today, it is almost
unavoidable for any principal employer not to avail any services of contract workers. However,
due to compliance issues, safety and security issues, accidents, etc, the entire contract labor
management process is becoming a complex subject for departments like HR, securities and facilities
etc. Kalyani Technoforge LTD has engaged nearly 286 contract Labours and Permanent Labours
105 till date. The Contract Labour management System is one such effort to ensure the welfare of
the Contract labour engaged, as well as to strive towards 100% statutoryCompliance.

Kalyani Technoforge LTD respects the right of employees to exercise freedom of association and
collective bargaining. As working in contract worker relation cell I came to know about the relation
of contract labours with the management and the format of work done in Kalyani Technoforge
LTD, At first the contactors get themselves registered under the government. They fill the form 12
and form 13.

This project was conducted mainly to find the gaps in implementation of the act in Kalyani
Technoforge LTD. There are different norms of rules and regulation that the contractors have to
follow when they come in contract with Kalyani Technoforge LTD.

Working for almost 60 days as an intern and getting knowledge of the work process of the contract
labour management. The works are related with the act.

There are many industries who work in different field but in Kalyani Technoforge LTD working in
contract cell was a different work experience. It carries the basic work of the workers involved in
Kalyani Technoforge LTD.

The work which is carried forward here is the checking of the wage payment.

Full and final settlements of the workers are done of the person who willing wants to resign from the
work.
CHAPTER -1
 INTRODUCTION

KALYANI TECHNOFORGE LTD LIMITED :

I have completed my summer internship in this company. I worked in contract Labour Management
Department. Our internship was for 60 days. This a 24x7 running company, the production never
stops in this company. As working in this department we come to know the problems of working
in Kalyani Technoforge LTD.

GAIN WORK EXPERINCE AND TRANSFERABLE SKILLS :

Students all have their educational experience in common. What stands out to
employers is those students who also have work experiences by the time we
graduate. This automatically makes us more marketable; as we may require less
training and are assumed to be able to handle more responsibilities. In addition to
the specialized skills of ur field, transferable skills are generally required at any job
e.g. communication/interpersonal skills, computer proficiency, and team work.

ABLE TO EXPERINCE A PROSPECTIVE CAREER PATH

Most students enter college with an idea of a major or career pat and most students
end up changing their minds. Exploring is a very important part of the academic
process, and gaining a work experience is a great way. By the time of graduation,
we have confidence that the degrees we are receiving are the right ones for us.

BETTER COMMUNICATION AND INTRACTION WITH SENIORS

It’s all about who we know. As a student intern, we are surrounded by

professionals in the industry that we are seeking access to. It’s more than just about
getting a grade, earning credit. This is an opportunity to learn from everyone
around us, ask questions, and impress them with your eagerness. These people can
be your future colleagues or can be the connection to your first job.
 INDUSTRY PROFILE

‘Forging’ is traditionally considered as the back bone of manufacturing industry. It is a major input to the
sectors which support economic growth of the nation, such as, Automobile, Industrial Machinery, Power,
Construction & Mining Equipment, Railways and General Engineering.

The Indian forging industry is well recognised globally for its technical capabilities. With an installed
capacity of around 38.5 lakh MT, Indian forging industry has a capability to forge variety of raw materials
like Carbon steel, alloy steel, stainless steel, super alloy, titanium, aluminium and so forth, as per the
requirements of user industry.

Over the years, the Indian forging industry has evolved from being a labour-intensive industry to capital-
intensive manufacturing sector. The current investment in the plant and machinery by Indian forging
companies is worth of INR 27,833 Crore.

Based on their installed capacity, the forging units may be classified as very large (capacity above 75,000
MT), large (capacity above 30,000 to 75,000 MT), medium (capacity above 12,500 to 30,000
MT), small (capacity above 5,000 to 12,500 MT) and very small (capacity up to 5,000 MT). Based on this
classification it is seen that about 83% of the total number of units are small and very small, while only
about 8% can be classified as very large and large units; the balance of about 9% constitute the medium
sized units.
INDIAN FORGING INDUSTRY CLUSTER:

The Indian forging industry is concentrated around its end user customer locations. Therefore, the major
forging clusters are found to be in the states of Maharashtra, Punjab, Gujarat, Tamil Nadu, Haryana,
Delhi, Karnataka, Maharashtra, West Bengal and Andhra Pradesh. States such as Maharashtra, Punjab,
Tamil Nadu, Haryana, Maharashtra and Delhi. (Refer map below)
The forging industry of India provides direct employment to about 95,000 people. The small and very
small units are mainly dependant on manual labour, however medium and large units are more
mechanized. Quality standards in the industry have improved significantly and the sector is now well
known globally for its high quality.

Current share of auto sector is about 58% of total forging production while the rest is with the non-auto
sector. Changes in Indian automobile industry directly impact Indian forging industry, because the forging
components form the backbone of the Indian automobile industry.

Since the automobile industry is the main customer for forgings the industry’s continuous efforts in
upgrading technologies and diversifying product range has enabled it to expand its base of customers to
foreign markets.

The Indian forgings industry has made rapid strides and currently, not only meets almost all the domestic
demand, but has also emerged as a large exporter of forgings.

The industry is increasingly addressing opportunities arising out of the growing trend among global
automotive OEM’s (Original Equipment Manufacturers) to outsource components from manufacturers in
low-cost countries. As a result, the industry has been making significant contributions to country’s
growing exports.

In order to reduce the impact of cyclicality and dependence on auto sector, the industry plans to diversify
into non-automotive sectors.
PERFORMANCE HIGHLIGHTS:

FIGURE 1: YEAR-WISE INSTALLED CAPACITY VS TOTAL PRODUCTION

FIGURE 2: FORGING PROCESS-WISE TOTAL INSTALLED CAPACITY

FIGURE 3: CONSTITUTION OF DOMESTIC SALES AND EX
 OBJECTIVES OF THE STUDY:

 To attain a clear understanding of the applicable laws.

 To know the applicability of the acts and its objectives.
 My study is to find the gaps in regard of contract labour act which are even being followed by
Kalyani Technoforge LTD.
 To know how the training is carried out for newly joined employees in Kalyani Technoforge
Limited
CHAPTER -2
 COMPANY PROFILE

THE KALYANI GROUP :

50 YEARS OF SPEARHEADING INNOVATION, AND DELIVERING CUSTOMER-

SATISFACTION:

With a successful journey spanning across 5 decades, Kalyani Group is a globally renowned conglomerate
with an annual turnover of over US$3 Billion. Worldwide, it has 15+ leading companies across various
industries like Engineering Steel, Automotive, Industrial, Renewable Energy, Urban Infrastructure and
Specialty Chemicals. A strong engineering global workforce of 10,000 adds to the many strengths of the
group.

The end-to-end capabilities and manufacturing footprint of the group span across the globe.
Guided by the visionary leadership of its Group Chairman, Mr. B. N. Kalyani, Kalyani group is backed by
technology and innovation, and led by high customer-satisfaction, making it a market leader in all its
respective business segments.
ABOUT KTFL (Kalyani Technoforge Limited) :

DELIVERING EXCELLENCE EVERY STEP OF THE WAY :

Emerging as the fastest growing leader in world-class forgings and machined components, sub-assemblies
and assemblies. Kalyani Technoforge is a manufacturing partner for renowned brands in the auto and
non-auto sector. With innovation at our core, we have been at the forefront of technology ever since our
inception in 1979.

KTFL is part of USD 3 billion conglomerate Kalyani Group under Bharat Forge as the flagship company.
We have always encouraged people participation, investments in latest technologies, energy efficient
processes (green technology) and co-engineering which helped us to tranform from just a reliable
component supplier to a development partner.

We take great pride in speedy development, supply at the right time and flexible manufacturing facility.
To provide the highest level of customer service in the forging industry, we have dedicated machining
lines for specific customers.

All our efforts are customer-centric because we share our customers' goals; of ensuring a delightful
experience for their customers. With our comprehensive services we manufacture products that are safe,
sustainable, reliable and enhance performance.

OUR PHILOSOPHY :

We share our clients’ goal, of delighting their customers

Safety and performance are of utmost importance, for the entire customer chain. And we leave no stone
unturned to ensure that we deliver nothing but excellence.

We provide end-to-end solutions to our customers so that they can concentrate on better delivery for their
customers. Our backward integration and forward integration, cutting-edge technology, state-of-the-art
automation, streamlined processes and stringent testing ensures our customers rest assured with KTFL by
their side.
PURPOSE :
We at Kalyani Technoforge are speed enablers and technology leaders who provide end-to-end solutions
through world class manufacturing practices so that society experiences safe, affordable and innovative
products leading to a greener tomorrow.

VISION :

 Turnover of 1500cr by Financial Year 2020.

 $100 Million share of Export Business by Financial Year 2020.

MISSION :

We are committed for total customer satisfaction globally by providing competitive end to end solution
with an emphasis on environment and safety. We offer opportunities to our stakeholder to excel in the
metal processing industry through manufacturing excellence, technological up gradation and continual
improvement.

VALUES :

 Respect for Every Individual

 Innovation Inside Out
 Speedy Response to Customers
 Performing with Passion
 Excellence through TPM
 Contributing to Nature and Society
 Building Mutual Trust
KTFL’S JOURNEYOU

RNEY
KTFL’s Journey
KTFL’s Journey
KTFL’s Journey
 ALL SOLUTIONS UNDER ONE ROOF

PRODUCT DESIGN AND DEVELOPMENT :

Our engineering department works extensively on latest softwares to ensure the perfect component is
delivered.

Simulation is our irreplaceable strength for New Product Development. Using high-tech simulation
softwares, we develop virtual components that let us design products that are immaculately accurate and
efficient. The Del Cam software assists us in getting the product right, the first time itself.
OUR DESIGN AND DEVELOPMENT FACILITY IS EQUIPPED WITH:

FOR FORGING DESIGN :

 State-of-the-art CAD CAM CAE

 FORGE 11 simulation software

 Crankshaft Balancing Software

 UG

 Pro-e

 Del Cam

FOR GEAR CUTTING :

 Creo

 Solid Works

 Auto Cad

TOOL AND DIE MANUFACTURING :

KTFL has a state-of-the-art in-house tool & die manufacturing facility comprising of latest tooling
technology with CNC turning centers and high speed vertical machining centers, EDM and wire cut
machines from internationally renowned companies.
KTFL has a state-of-the-art in-house tool & die manufacturing facility comprising of latest tooling
technology with CNC turning centers and high speed vertical machining centers, EDM and wire cut
machines from internationally renowned companies.

 100% IN-HOUSE MANUFACTURING OF DIES AND TOOLS

 USE OF BEST MANUFACTURING PRACTICE AND SUPPORT WITH DELCAM

SOFTWARE

 KAN-BAN SYSTEM IMPLEMENTED TO ENSURE THE DIE AVAILABILITY AT

ANY GIVEN TIME

 3-AXIS MEASURING SYSTEM FOLLOWED TO ENSURE DIE CRITICAL

PARAMETERS BEFORE RELEASING TO PRODUCTION
FORGING :

At Kalyani Technoforge, we are equipped with fully automated forging presses of different capabilities
for different requirements. With efficient methodology and next-gen technologies, we provide optimized
forging solutions to every customer.

 Closed die hot, warm, cold, precision and near net shape
 Best-in-class lead time
 Single piece flow- from bar to finish
 Fully automatic presses- 6 axis transfer line and robotic arms handling
 Iso annealing, spherodise annealing, hardening & tempering furnaces
 Appropriate presses for competitive edge ranging from 630T to 4000T
 400T cold forging
 Contingency ready- with 20 presses, we are always ready with interchangeable dies
 Future expansion- two presses of 4000T and a press of 2500T
PRECISION MACHINING :

A one stop destination for value-added machined products, Kalyani Technoforge comes with the latest
precision machining processes like CNC Turning, VMC, Induction Hardening and OD Grinding.
Our facilities are also equipped with the technology for precision machining for fuel injector parts.

HIGHLIGHTS OF KTLF’S MACHINING FACILITY :

 Dedicated machining lines

 Robotic overhead gantry and material handling
 Latest equipment procured from the best in the world
 Futuristic technology that corrects itself without human intervention
 Wide range of capabilities: turning, milling, drilling, induction hardening, grinding, hard turning,
ultra sonic washing, thermal deburring (TEM) and super finishing
TRANSMISSION COMPONENTS TECHNOLOGY :

KTFL has recently set up a new green field, state-of-the-art plant at Khed for gear manufacturing. The
plant is fully equipped for high performance gears and components suitable for NVH requirements using
disruptive technologies required by CVT, DCT & EV transmissions.

THE FACILITY COMPRISES OF ADVANCED MACHINERY FOR :

 High speed dry hobbing

 Gear grinding

 High speed spline rolling

 Power skiving

 Power honing

SPECIALISED HEAT TREATMENT :

KTFL’s Heat Treatment facility is QMS Certified: IATF, AS 9100 D, ISO 9001:2015. With metallurgy
experts at all team levels, out HT solutions are comparable only to the best in the world.

We have different types of HTs under one roof: atmospheric, vacuum and nitriding processes. The variety
of furnaces include Sealed Quench, Vacuum, Gas Nitriding and Plasma Ion Nitriding.

Heat treatments for varied material profile like Super alloys, alloy steel, tool and die steel, Cu, Al, Ni and
Ag Brazing are available.

With a fully equipped lab and simulation, we also have a special racking process based on component
profile ranging from 1 gm to 1250 kg.
METAL INJECTION MOULDING :

Our latest technology is setting benchmarks in MIM for the industry. A pioneer in India for catalytic de-
binding furnace, we are equipped with the latest machines and robotics to undertake Moulding, Sintering
and De-binding.

Our facility for metal injection moulding can cater to a wide range of products, ranging from 10 mg to 320
gms.
INSPECTION AND TESTING :

Every solution at KTFL comprises of its unique set of equipment for quality control, testing and
validation. With some of the rarest and most advanced inspection equipment in India, our products are
continually on the check for accuracy. Our expertise in data retention and multi-gauging, with the cutting
edge technology ensures unmistakable efficiency.
ELECTRIC VEHICLE :

E-mobility being the future of automobiles, is one of our key focuses. We have developed innovative
processes to manufacture world-class transmission components for E-vehicles that are performance-
driven, efficient and long-lasting.

PASSENGER CARS :

Kalyani Technoforge has been setting benchmarks in manufacturing auto components for passenger cars, globally.
We have end-to- end solutions for manufacturing highly efficient engine components, powertrain components and
sub-assemblies through world-class innovative technology.
LCV/ MUV/ HCV :
WHY KTFL? :
 OUR CLIENTELE :
OUR CLIENTELE
DOMESTIC CLIENTS :
INTERNATIONAL CLIENTS :

AWARDS AND RECOGNITIONS :

AWARDS AND RECOGNITIONS

AWARDS AND RECOGNITIO
 SWOT ANALYSIS OF KALYANI TECHNOFORGE LTD :

STRENGTHS:

 Raises over 14 million tonnes of ores from its captive collieries, iron ore mines and quarries

 Adaptability of company in the fast changing environment

 Control over raw materials

 Economies of scale

 Strong backing of Kalyani Group brand name.

WEAKNESSES:

 Operational efficiency are not as good as international leaders

 Slightly lagging in technological front

OPPORTUNITY:

 Newer technologies- The Corex process, The Hismelt process, Direct iron ore smelting

 Public private partnership

THREATS:

 Rising coking coal prices

 India is plagued with violent agitation against land acquisition

 Government & regulatory norms

 International competition
CHAPTER - 3
ACTIVITIES PERFORMED DURING THE INTERNSHIP
 CONTRACT LABOUR MANAGEMENT

Contract Labour Management is a growing area in most of the organizations. Today, it is

almost unavoidable for any principal employer not to avail any services of contract workers.
However, due to compliance issues, safety and security issues, accidents, etc, the entire contract
labor management process is becoming a complex subject for departments like HR, securities and
facilities, etc.

Kalyani Technoforge LTD has engaged nearly 286 contract labours and 105 Permanent Labours
till date and has an IT enabled contractor’s cell. The Contract Labour management System is one
such effort to ensure the welfare of the Contract labour engaged, as well as to strive towards 100%
security.

This project was conducted mainly to find out the gaps in the act in Kalyani Technoforge LTD.
Whether it serves the purpose of the contractor in accordance with the act.

PRINCIPLE EMPLOYER:

It is mandatory on the part of the principal employer to seek registration under section 7 of the
Act . the act makes it obligatory on the part of every contractor not to undertake any work
through contract labour without obtaining the valid licence.
Duties to be maintained prescribed in register and records are

(a) Muster roll

(b) Register of wages
(c) Register of deduction
(d) Register of overtime
(e) Register of fines
(f) Register of advances
(g) Wage slip.
 APPLICABLE RULES AND ACT

 Contract Labour (regulation & abolition) Act 1970.

 Maharashtra Contract Labour (regulation & abolition) Rule 1972.
 The Payment of Bonus Act 1965.
 Industrial Dispute Act 1947.
 Maharashtra Factories Rule 1950.
 Payment of gratuity Act 1972.
 Employee provident fund and miscellaneous provident Act 1952.
 Employee State Insurance Act 1948.
 Minimum Wages Act 1948.
 Payment of Wages Act 1936.
 DESCRIPTION OF THE ACTS

CONTRACT LABOUR (REGULATION &ABOLITION) ACT 1970 :

MAHARASHTRA CONTRACT LABOUR (REGULATION & ABOLITION) RULES

: 1972

.
APPORVAL, LICENSING AND REGISTRATION OF FACTORIES :

 Submission of plan of any class or description of factories to the chief inspector or the state
government.
 Obtaining previous permission of the state government for the site on which factory is to be
situated and for construction of anyfactory.
 Nature of plans and specification and the authority certifying them.
 Registration and licensing of factories.
 measures to be taken by factories for health, safety and welfare of workers.
 special provisions relating to hazardous processes.
 working hours of adult.

PAYMENT OF BONUS ACT 1956 :

Minimum Bonus: 8.33% if salary or wages earned during accounting year or Rs.100 whichever is
higher, whether or not the employer has any allocable surplus in the accounting year. Maximum
Bonus: 20% of salary or wages only if allocable surplus exceeds the amount of minimum wages
bonus payable under the act. Salary or wage calculation: Salary or wage exceeding Rs.3500:
Rs.3500 Salary or wages less than Rs.10, 000: Actual Salary or wages: Basic + DA.

INDUSTRIAL DISPUTES ACT 1947 :

The Industrial Disputes Act 1947 extends to the whole of India and regulates Indian labour law
so far as that concerns trade unions. It came into force April 1, 1947. The principal employer
under the Act would be employee under the Industrial Disputes Act in certain circumstances,
against who ‘Industrial Dispute’ be raised.

PAYMENT OF GRATUITY ACT 1972 :

The minimum years of service rendered by the workman must be 5 years. Payment of gratuity is
applicable on termination, resignation or retirement.

Wages for calculation are at 15 days’ wages for every completed year as if the month comprises
of 26 days at the last drawn wages (Basic+DA). Calculation for seasonal worker will be done at 7
days’ wages for every completed year of service.
EMPLOYEE’S PROVIDENT FUND & MISCELLANEOUS PROVISION ACT 1952 :

PF contribution by employer & employee is 12% on the basic and DA. Every employee drawing wages
and DA upto Rs 15000 will be eligible to become a member. In case of contractor, it is the responsibility
of the principal employer to ensure that provisions of this act are compiled by Contractors. The last date of
submission of PF contribution is 15th of the next month.

EMPLOYEE’S STATE INSURANCE ACT 1948 :

Every employee drawing wages and DA upto Rs. 15,000/- will be eligible to become a member.
Company should inform within 48 hours to the Factory Inspector and ESIC inspector if any fatal
accident (which can be result into death); If the person fails to inform it is being created as a death or
murder against a Company. Submission Contribution 6.5% of Basic + DA, 1.75% deduct from
Employee Salary on Basic + DA, 4.75% employer contribution.

MINIMUM WAGES ACT 1948 :

This act provides that the principal employer will ensure that the workers engaged through contractor
will be paid wages not less than the minimum rate of wages fixed under the Minimum Wages Act.

PAYMENT OF WAGES ACT 1936

The wage of the workers are decided by the government Maharashtra contract labour (regulation &
abolition ) rules 1972.The wage period is fixed by the government of India and steel follows the same
rule which is set by the government. The DA and overtime payment is made accordingly to workers
time period.
APPLICABILITY OF ACTS & RULES PERTAINING TO KALYANI TECHNOFORGE LTD
WORK

 PAYMENT OF BONUS: -

 it is an act which is given in the financial year. Less than 30days is not eligible.
 Minimum Bonus: 8.33% if salary or wages earned during accounting year or Rs.100
whichever is higher, whether or not the employer has any allocable surplus in the accounting
year.
 Maximum Bonus: 20% of salary or wages only if allocable surplus exceeds the amount of
minimum wages bonus payable under the act.

 INDUSTRIAL DISPUTE: -

it generally occurs while paying of PF or ESIC and during the grievance or when the person
meets with the accident it is the companies responsibility to look after it.

 PAYMENT OF GRATUITY: -

if any worker continuously works for 5years. He / she will be given the gratuity. If the
worker works for 240 days in 3 years it will be multiplied 15days x the current year.

 EMPLOYEE PROVIDENT FUND AND MISCELLANEOUS PROVISION ACT 1952:

Every employee drawing wages and DA upto Rs 15000 will be eligible to become a member.
The last date of submission of PF contribution is 15th of the next month. The bank copy of
the transaction is given with the total amount. The bank gives the copy with the certification
which is shown in the department to verify the amount paid for the month.

 EMPLOYEE STATE INSURANCE ACT 1948:-

Every employee drawing wages and DA upto Rs. 15,000/- will be eligible to become a
member. Monthly Challan – 21st of the next month is the last date of submission
Contribution 6.5% of Basic + DA, 1.75% deduct from Employee Salary on Basic + DA, 4.75%
employer contribution.
 MINIMUM WAGE: - To make payment of overtime in excess of number of hours
constituting normal working day at the rate fixed under the Act or any other law
whichever is higher. Any contract allowing payment of wages less than minimum is null
and void. Minimum wages must be paid through banks.

 PAYMENT OF WAGES ACT 1936:- The wage period is fixed by the government
of India and steel follows the same rule which is set by the government. On national
holiday the workers are paid for those days as it not a leave either it is a holiday.
 UNDER RULE 25

CONDITION OF SERVICE OF WORKMEN OF THE CONTRACTOR :

It is expedient to specify rates of wages holiday’s hours of work and condition of service of the
workmen employed by contractors who do not perform the same kind of work as the workmen
directly employed by the principle employer of an establishment.

MAHARASHTRA CONTRACT LABOUR (REGULATION AND ABOLITION ) RULES

1972 :

In exercise of the power conferred under sub clause (b) clause – v of sub rules (2) of rule – 25 of
the Maharashtra contract labour (regulation and abolition) rules 1972, the commission of labour,
Maharashtra, Pune hereby specify the following rates of wages, holidays, hours of work and
condition of service for the workmen employed in the establishment of following category of
Principle Employers.

 EMPLOYMENT CARD: -

the contract labour employed by a contractor shall be provided with an employment card in form
xiv as per the provisions contained in the rule 76 indicated there in the name and address of the
workman, fathers name, serial number in the register of workman employed the date of
appointment designation wages period and rates and his residential address.

 WORKING HOURS :-
(a) no adults workman shall be required to work for more than 8hrs in any day and 48hrs in a week.
(b) No young person who has not completed 18yrs of age shall be required to work for more than 7hours
in a day and 42hrs in a week.
  BAR ON EMPLOYMENT OF FEMALE :-

1. no female shall be required to work after 7:00

2. P.M or before 6:00 am.

 BAR ON EMPLOYMENT OF CHILD LABOUR: -

1. no child below the age of 15 years shall be allowed to work as contract labour.

 REST INTERVAL: - no workman shall be required to work for more than 5hours in any days he
has an interval of rest for at least half-an-hour.

 EXTRA WAGES FOR OVERTIME: - where a contract labour is required to work for more than
9hrs in any day excluding the period of rest interval, he shall be entitled to wages at the rates of
twice his ordinary rate of wages.

 NATIONAL AND FESTIVAL HOLIDAYS :-

(a) Every workman employed by the contractor shall be entitled to 8 holidays in a calendar year

with wages which shall include 26th January , 15th august , 2nd October and 1st may. The
remaining 4 holidays will be fixed by mutual discussion between the contractor and his labour each
year by the end of November. The list of holidays so decided will duly and prominently be displayed
by the contractor. A copy of the list of holiday for the following year shall be furnished by the

contractor to the local inspector of the region and the deputy labour commissioner by 5th
December each year.

(b) A workmen would be entitled to the festival and national holidays as per sub- clause if he has
put at least 15days of work during the calendar year and has been on roll a day prior to the holiday.
 LEAVE WITH WAGES: - every workman who has worked under a contractor during the
calendar year shall be allowed leave with wages for the number of days calculated at the rate
of –

 If an adult one day for every 20 day of actual work performed by him.

 If a young person one day for every 15days of actual work performed by him.

 A workman may at any time apply in writing to the contractor or his authority representative
not less than 7 days before the date on which he wishes his leave to begin to take all the leave
or any portion thereof allowable to him during the calendar year.

 Provided that the total number of days of leave that may be carried forward to a succeeding
year shall not exceed 30 days. The contractor shall pay the wages whenever the contractor
labour quits the employment.

 a workman may, at any time apply in writing to the contractor or his authorized representative,
not less than 7 days before the date on which he wishes his leave to begin to take all the leave
or any portion thereof allowable to him during the calendar year.

 Every employee for the period of leave allowed under this section shall be paid at a rate equal
to the daily average of his total full time earning for the days on which he worked during the
month immediately preceding his leave exclusive of any overtime, but inclusive of D.A.
 WAGE RATE :-

(i) where no rates have been regulated by way of agreement, settlement or awards for such
employment application for any category or class of workmen the contractor shall pay
following wages
Un-skilled: 3808
Semi-skilled: 4006
Skilled: - 4873

Highly skilled: - 5920

(ii) Where to arrive at daily wages to monthly shall be divided by 26 , which is inclusive of
holiday wages.
(iii) The contractor shall pay variable dearness allowance of the workers on the basis of
notification issued by the department of labour employment and training from time to
time in this regard on the basis of increase or decrease in all Indian consumer price index
as per the provisions contained is section-3 and section-5 of the Minimum Wages Act
1948.
(iv) If statutory wages or wages regulatory as per award /settlement/ agreement/ which are
in force are more beneficial to the workermen, the worker shall be entitled.
(v) Skilled worker is one which involves skill or competence acquired through experience
on the job or through training as an apprentice in a technical or vocational institute and
performance of which calls for initiative and judgment.

Highly skilled work means work which calls for the degree of performance of certain task
acquired through extensive technical or professional training or practical work experience for long
years and also required of a worker to assume full responsibility for the judgment of decision in
involved in the execution of these.
CHAPTER -4
KEY LEARNING ELEMENTS:

As working in contract labour management department. First thing what I learnt was :

 How to work in the corporate world.

 To be punctual on time for the work you are paid for.
 To have respect for all the colleagues either that person is elder to you or younger to you.
 There was no culture difference.
 Cooperative and motivating for each other.
 To be polite and humble to customers.
 To follow up the rules and regulation.
 On what basis the amount to deducted on PF and ESIC from the workers and employees
accounts.
 What are the benefits that the worker should get when they leave the organization with their
own willingness.
 The working hours for the workers that is made according the government rule and
regulation.
 On what basis the bonus is paid.
 How the grievance handling process is done.
 Leave and wage payment and overtime payment made to the workers.
 The unskilled workers should be well trained in terms of paper work as they are not so
educated.
 RESPONSIBILITY OF EMPLOYER(CONTRACTOR)

employer having invested money on running the organization through their own source or by joint
venture or through loans obtained from financial institution, it is natural for them to earn profit, the
result is the exploitation of human resource and the reduction in quality of the produce under the
wrong option of more production at a low cost.
the employer gets themselves register through the government under the act. then at first they have
to register themselves in the procurement division. then they come to contract worker relation for
registration they fill the format of pf, esic letter and copy of work oder in which field the employer
wants to engage their workers.
after that in the department of contract worker relation cell they are resisted in the system. after
that they can apply for the gate pass. if at all employer have more than 9 members the employer
have to take the labour license.
ones the labour license they engage their works in the department. the muster roll is even checked
for how many days the worker worked in the department they were engaged. after the payment
starts they again come back to contractor cell for the verification of the paper work whether the
workers are paid according to the law and act. the department even checks the full and final
settlement for the person who willing reigned from the job.
 CONCLUSION

KALYANI TECHNOFORGE LTD is a robust company. As per contract labour (regulation &
abolition) and Maharashtra contract labour (regulation & abolition) Act 1972 all the rules are
followed in Kalyani Technoforge LTD.

But there is always a chance of improvement and the gaps to be fulfilled so during my study I
could study few gaps Kalyani Technoforge LTD could implementation and could manage the
company in the better way.

As when there is a change in form II it should be amended in the system of Kalyani

Technoforge LTD. As it is the information technology world it should go hand in hand with the
technology and can bring few changes in the system.

When it comes to the safety measure I personally feel this is the best company which takes care of
its workers by all kinds of safety protections and equipments.

The unskilled workers should be trained well in regard their owner as contractors are not
cheating them workers should be aware of the rules and regulation.
 RECOMMENDATIONS AND SUGGESTIONS

These are the gaps that can be filled :

 Many employers don’t return the attendance ticket to the worker so the company should
make norm in the favor of the workers who are under the contractors.
 Kalyani Technoforge LTD should ensure the delivery of annual PF statement to the entire
contract worker.
 The principal employer (Contractor) should properly educate about the ESIC card so that
all contract worker and their family can get the benefits from ESIC.
 A system is required which ensures 100% compliance pertaining to the full and final
settlement of the wage.
 Cash payment should be eliminated.
 Kalyani Technoforge LTD should train its unskilled worker in a better way so that they are
aware of the rules and regulation that are made for contractor.
 BIBLIOGRAPHY

BOOKS :

 Dr. Sharma J. P.( 2009) factories act 1948 2nd edition vol 2

 Kharbanda & kharbanda (2013) factories act 1948 4th edition vol 6

 Khandelwal . K .K Commentary and digest on factories act 1948 (2007) 1nd edition

 Srivastava .K.D Commentaries on factories act 1948 (2013) 5th edition (reprint)

WEBSITES :

http://www.kalyanitechnoforge.com/

https://www.wikipedia.org

https://mhrd.gov.in/