A Study on Contract Labour at Iffco Kandla

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A STUDY ON CONTRACT LABOUR AT IFFCO KANDLA

SIP Project report submitted in partial fulfillment of the requirements for the PGDM

Programme

BY

NIKITA CHAWLA

2012186

Supervisors: 1. Mr. A.R Ambwani

2. Prof. M.M Fadnavis

Institute of Management Technology, Nagpur

2012-2014


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PREFACE

Management student has to apply his theoretical knowledge in the practical field and compare

the results with the classroom learning. Industrial training for a management student is the first

stage towards the industrial exposure which tells him what difficulties or challenges he may face

when he will enter in the corporate world.

As per syllabus prescribed by the INSTITUTE OF MANAGEMENT AND TECNOLOGY, it is

compulsory for every student to undergo 6 to 8 weeks of industrial training at some renowned

organization.

I have taken my industrial training at IFFCO Kandla - Unit. This project majorly covers the P&A

Department of IFFCO- Kandla Unit and also contains the analysis of the data collected on

employee engagement.


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ACKNOWLEDGEMENT

Summer internship has long been an indispensable part of our curriculum of PGDM programme.

Between the first and second year, this is an ideal way to get exposure to the real business world

and learn about an industry. I have done my summer internship project at IFFCO- Kandla , for 6

weeks from 1st May to 11th June, 2013.

My sincerest thanks and respect to Mr. A.R Ambwani ( Dy. General Manager) for the

immense help and guidance. I am indeed very thankful to them for their unending support rightfrom the inspection of this project. They continuously shared their precious time and provided

me right guidance at every stage.

I am grateful to Prof. M.M Fadnavis, Professor at Institute of Management Technology,

Nagpur for helping me to solve the queries and difficulties related to my internship project. His

support and encouragement has a lot to do with the completion of this Project

.

I am indebted to all employees of P& A department of IFFCO- Kandla, who directly orindirectly helped me in making my project a success. I greatly acknowledge the contribution of

all.

Nikita Chawla


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TABLE OF CONTENTS

1 Introduction of the Industry 2

2 Human resource section at IFFCO 8

3 Objective of Study on Contract labour 17

4 Research Methodology 17

5 Introduction of contract labour 18

6 Contract labour at IFFCO Kandla 21

7 Engagement process of Contract labour 25

8 List of forms 26

9 Details of documentation under Contract Labour Act,1970 27

10 Obligations of principal Employer 32

11 Obligation of the Contractors 33

12 Welfare and health of Contract labours 35

13 Administration of Contract labours 36

14 Precautions taken while engaging Contract labour 37

15 Limitation 37

16 Recommendations 37

17 Bibliography/References 38


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Executive Summary

To ensure continuing progress to develop & transfer the best technologies & to keep pace with

the largest development in the world of agriculture INDIAN FARMERS FERTILIZERS

COOPERATIVE LIMITED (IFFCO) was established on 3rd

November 1967 as a multi-unit

cooperatives organization. In nearly three decades of successful existence, the society has

blossomed into a premier organization in the capital intensive fertilizer industry in India. IFFCO

is one of the pioneer organizations with cooperative sector with Broad Objective of augmenting

fertilizer production, ensuring fertilizer availability at the farmers door step, strengthening

cooperative fertilizer distribution system & educating, training & guiding the farmers for

improving the agricultural productivity.

IFFCO has emerged as the largest producer & marketer of fertilizer in the country with

five operating units located at kandla & kalol in Gujarat, Phulpur & Aonla in Bareilly in U.P &

Paradeep in Orissa.

IFFCO is a leading producer of fertilizer in the country. IFFCO has built its structure based

on four broad objectives dividend initially by its founders.

These are: -

1) Production of quality chemical fertilizerUrea, NPK Complex & DAP.2) Service to the farming community.3) Making fertilizer available closely to community &4) Strengthening cooperatives in order to enable them withstand competition.


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INTRODUCTION OF IFFCO

Pride of Cooperatives

I ndian Farmers Ferti li zers Cooperative Limited, popularly known as IFFCO,

emerged as the pioneering venture on the horizon of fertilizer production and marketing with the

objective of attaining self- sufficiency in food grain production. Born as multi unit cooperative

society on 3rd

November 1967, with a membership of 57 cooperative societies, IFFCO witnessed

a meteoric rise and blossomed into the largest manufacturer and marketer of fertilizers in the

country. With an authorized capital of Rs.1000 crore, its membership extends to around 36.000

cooperative societies through which its products are channeled in 29 states and 2 union territories

in the country. This multi-state cooperative society commissioned its first two plants at

KANDLA and Kalol in Gujarat in 1975 for production of Urea and NPK/DAP, respectively. It

expanded its production facilities in 1981 by commissioning two additional streams ofphosphatic fertilizers at Kandla and a new urea plant at Phulpur. Another gas based plant was

commissioned in 1988 at Aonla, Uttar Pradesh.

IFFCO realized its dreams of acquiring an impregnable status of global fertilizers

major by expanding its production facilities at Kandla, Kalol, Aonla and Phulpur in quick

succession. During the period 1996 to 1999, expanding doubled the installed capacity of all the

three ammonia/ urea plants at Aonla, Kalol and Phulpur. The capacity was raised from 16.2 lakh

tons to 32.2 lakh tons. The Kandla unit was also expanded and the new plant was commissioned

on 5th

August 1999. The annual capacity of NPK/DAP was increased from 9 lakh tons to 16 lakh

tons of bulk fertilizers or 3.09 lakh tons to 5.61 lakh tons of P2O5 OUTPUT.

During the year 2001-02 IFFCO has 55.51 lakh MT of fertilizers comprising of 34.91

lakh MT of urea and 20.60 lakh MT of NPK/DAP and highest ever sales of 5605 lakh MT

which comprises of 35.85 MT urea and 20.65 lakh MT NPK/DAP.

COMPANY PROFILE

FERTILIZER INDUSTRY IN INDIA:-

The fertilizer industry in India consists of three major players: The Government ownedPublic Sector Undertakings, Co-operative Societies like IFFCO, KRIBHCO and units

from Private Sectors. There are about 33 major producers producing NPK fertilizers in

the country at present. The fertilizer industry of India had made constructive use of the

fertilizer provided by the Government of India, to ensure that the country achieved


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reasonable self-sufficiency in food grains production. The fertilizer industry has

organized itself through Fertilizer Association of India (FCI) to co-ordinate with the

Government of India to achieve the macro-economic objectives related to agricultural

sectors and to provide other services.

Co - operation refers to an organization of individuals for achieving a common economic

objective by mutual help and collective efforts.

The word Co - operation has been derived from the Latin word Co-operate which, means

to work together, to labor together, to endeavor for some common purpose.

HISTORY OF IFFCO:-

During mid-sixties the co-operative sector in India was responsible for distribution of 70

% of fertilizers consumed in the country. This sector had adequate infrastructure to

distribute fertilizers but had no production facilities of its own and hence dependent on

public/ private sectors for supplies. To over come this lacuna and to bridge the demand

supply gap in the country, a new cooperative society was conceived to specifically cater to

the requirements of farmers. It was a unique venture in which the farmers of the country

through their own co-operative societies created this new institution to safeguard their

interests. The number of co-operative societies associated with IFFCO has risen from 57 in

1967 to 38,155 at present.


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Farmers dream to have their unique organization that can produce and make them

available quality fertilizer at their doorstep was successfully realized with the formation of

IFFCO, a pioneer in Indian Cooperative movement on 3rd

November, 1967. Beginning with

a modest membership of 57 cooperative societies in 1967-68, IFFCO has blossomed into

Globes largest fertilizer cooperative with sizable membership Of 37,500 cooperative

societies in its fold.

Thus IFFCO has become a cooperative of the farmers, by the farmers and for the farmers.

Initially, IFFCO set up its plants at Kalol and Kandla in Gujarat which were commissioned

in 1975. Subsequently, it commissioned plant at Phulpur and Aonla in U.P. in the year

1981 and 1988 respectively. IFFCO has acquired a NPK/DAP and Phosphoric Acid facility

at Paradeep in Orissa. The marketing of IFFCOs product NPK/DAP/ Urea is channelised

through cooperative societies and institutional agencies in over all states and union

territories of the country.

IFFCO has notched up a record sale of 81.95 lakh tonne of fertilizer material comprising

50.13 lakh tonne of urea and 31.82 lakh tonne of NPK/DAP, during the year witnessing a

growth of 27 % as against 64.64 lakh tonne, the year before. Best ever marketing

productivity also sprang to 5566 tonne/head.

3 November 1967: Indian Farmers Fertilizer Cooperative Limited (IFFCO) was set up atthe initiative of the farmers. It soon emerged as a role model for cooperatives. IFFCO is

registered under the Multi-State Cooperative Societies Act 1984, which was amended in

2002. Beginning with a membership of 57 societies, it has grown to around 40,000 as on

31 March 2008. The initial equity capital of Rs 6 lakh has jumped to Rs 423.93 crore.

Indian Farmers Fertilizers Cooperative Limited, popularly known as IFFCO, emerged

as pioneering venture on the horizon of fertilizer production and marketing with objective

of attaining self-sufficiency in food grain production.Several prestigious awards stand


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testimony to the fact that IFFCO is driven by its values and the dedication of its people.

This is an organization that believes in fair play and has always followed transparent and

professional practices in corporate governance. Over 40 years ago, the Government and

the farming community came together with a single objective: to empower lives. Thus

was born IFFCO, the worlds largest Fertilizer cooperative.

IFFCOs mission is to enable Indian farmers to prosper through the timely supply ofreliable, high quality fertilizers and farm inputs and services in an environmentally

sustainable manner and to undertake activities to improve their welfare. This is the

success story of an organization that has the vision to grow; it is a story that has been

scripted with the best intentionsto benefit the farmer and to spread smiles across the

nation.

Indian Farmers Fertilizer Cooperative Limited (IFFCO) is a multi-state cooperativesociety engaged in production and distribution of chemical fertilizers. Registered on

3.11.1967, the Society commissioned its first two plants at Kalol and Kandla in Gujarat in

1975 for production of Urea and NPK/DAP, respectively. It expanded its production

facilities in 1981 by commissioning two additional streams of phosphatic fertilizers at

Kandla and a new urea plant at Phulpur. Another gas-based plant was commissioned in

1988 at Aonla, Uttar Pradesh. In the year 2005, IFFCO took over the Phosphoric Acid,

Sulphuric Acid and NPK/DAP plant of M/s Oswals Ltd, Paradeep.

IFFCOs production is approximately twelve thousand crore turnover in a year. New project which are going in IFFCO are:-1)Urea phosphate

2) Zinc sulphate

Streams Year of commissioning

A&B 1975

C&D 1981

E&F 1999


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Impetus to Cooperative Movement

Right from the beginning IFFCO has been sparing on efforts to inform & educate

the farmers through its dedicated field team at the grassroots level. Its need based education and

promotional programmes like crop demonstrations, field days, farmers meetings; seed

multiplication, village adoption; crop seminars and lay two plot and block demonstrations for thebenefit of farmers. The society has also pressed into service 165 Farmers Service Centers spread

over length and breadth of the country for providing technical guidance and making available all

vital agro inputs under one roof especially for small and marginal farmers. Special projects on

different aspect of Hi-tech agriculture such as drip irrigation, bio-pesticides, bio-fertilizers, use

of plastics in agriculture, agriculture implements; watershed management development, micro-

irrigation etc. have also been launched.

IFFCOS Kandla Plant

IFFCOs Kandla plant is located on the western bank of Kandla creek adjacent to KandlaPort Trust oil Jetties.

The plant (Kandla plant) produces NPK/DAP complex phosphate fertilizers of variousgrades, namely NPK grades 10:26:26, 12:32:16 & DAP 18:46:00 in terms of

N:P2O5:K2O.

The plant, originally consisting of only 2 streams A&B and related facilities wasdesigned & erected by M/s Dorr Oliver Inc. USA at a cost of Rs. 30 cores with an annual

licensed capacity of 1,27,000 MT P2O5. The plant was commissioned on 26th Nov.

1974 and commercial production declared on 1st Jan, 1975.

With increased demand for complex fertilizers, the capacity was doubled by addition oftwo more streams C & D designed & erected by HDO at a cost of Rs. 28.80 crores.

Licensed capacity was increased from 1.27.000 MT P2O5 per annum to 2, 60,000 MT

P2O5 per annum. The expanded unit was commissioned on 4th June 1981 and the

commercial production was started from 6th Sept. 1981. Subsequently due to

introduction of production of DAP grade, the total capacity increase to 3.09,000 MT per

annum of P2O5.

IFFCO went in for expansion of their unit at Kandla in 1996-97. Kandla phase-IINPK/DAP project conceptualized the setting up of two additional E & F streams for

manufacture of the same grades of NPK/DAP fertilizers with an annual production

capacity of 2,10,700 MTPA thus increasing the total capacity from 3,09,000 MTPA of
http://kandlant1/applications/iffcowebr5.nsf?OpenDatabasehttp://kandlant1/applications/iffcowebr5.nsf?OpenDatabasehttp://kandlant1/applications/iffcowebr5.nsf?OpenDatabase


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P2O5 to 5,19,700 MTPA of P2O5. The actual cost of the project was Rs. 205.30 crores

against a budgeted cost of Rs. 212.20 crores.

The main consultant for the NPK/DAP plant was M/s Hindustan Dorr Oliver, Mumbaiwith the pipe reactor technology obtained from process licensor M/s Grande paroisse,

France. The construction of E&F streams was completed 77 days ahead of schedule. The

E & F streams were commissioned on 10th June 1999 & 9th July 1999 respectively and

the commercial production started from 5th August, 1999.

Raw materialare :- 1) Potash

2) Urea

3) Ammonia

4) Phosphoric acid

5) Sulpuric acid

Vision

To augment the incremental incomes of farmers by helping them to increase their crop

productivity through balanced use of energy efficient fertilizers, maintain the environmental

health and to make cooperative societies economically & democratically strong for

professionalized services to the farming community to ensure an empowered rural India.

Mission

To provide to farmers high quality fertilizers in right time and in adequate quantities withan objective to increase crop productivity.

To make plants energy efficient and continually review various schemes to conserveenergy.

Commitment to health, safety, environment and forestry development to enrich thequality of community life.

Commitment to social responsibilities for a strong social fabric. To institutionalize core values and create a culture of team building, empowerment and

innovation which would help in incremental growth of employees and enable

achievement of strategic objectives.

Foster a culture of trust, openness and mutual concern to make working a stimulating andchallenging experience for stake holders.


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Building a value driven organization with an improved and responsive customer focus. Atrue commitment to transparency, accountability and integrity in principle and practice.

To acquire, assimilate and adopt reliable, efficient and cost effective technologies. Sourcing raw materials for production of phosphates fertilizers at economical cost by

entering into Joint Ventures outside India. To ensure growth in core and non-core sectors. A true Cooperative Society committed for fostering cooperative movement in the

country.

HUMAN RESOURCE DEPARTMENT

The Most Important assets of the organization are its employees so the management ofthe human resource is the prime function of management. In this function, the basic

responsibility of management is to bring employee and organization on the same platform

in order to meet the individual goal as well as the organization goal at the same time.

Human productive capacity depends upon his ability to acquire knowledge and put it toeconomic use. The management of human resource philosophies is the basis on which

polices and practices guiding an organizational behavior can be developed and

implemented. These are:

Accumulation: - means translate into polices and practices designed attract many goodcandidate very carefully and consistently.

Utilization: - individual are generally selected with attention to technical skill, althoughpersonal characteristic are still important.

Facilitation: - for treating and managing employee in organization is called facilitation.This hold that individual must have technical skill to able to work together enclose

reciprocal interaction.


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Personal Aspect: - are man power planning, recruitment, placement, promotion, transfer,Training and development, remuneration, productivity, incentives and superannuation

benefits. etc..

Welfare Aspect: - are working conditions, recreations facilities, medical care, transport,canteen, health and safety etc.

Industrial Relation Aspect: - covers, union management relation, collective bargaining,worker participation in management, grievance, disciplinary procedures and settlement of

dispute etc.

Human Resources Sections at IFFCO

ADM INISTRATION SECTION

Mainly organizations deal with basically three main things man, machine and tools. P&A

(Personnel and Administration) Department is dealing with men, their services and towards their

devotion to work, legal or statutory obligations as per rules of the organization for all that

systems requirement, which is required and dealt with personnel and Administration

Department. It has to physically act as an activator in the matter by providing certain amenitieslike health, cleanliness, transport, communication uniform of the employees etc. Monitoring is

required to make an organization effective and efficient by making the full P&A department

work efficiently and effectively. How full P&A department is working efficiently is a key

relation with, how the employees, vendors, government act as a service department. It is the

fulfilling service oriented department for the efficiency and effectiveness of the organization. If

not dealt properly gives negative or reverse results. Timely ordering of the different function of

the man is the key Administration functioning autonomy if it is called the functioning body of

the organization

The major sections of Personnel & Administration Department are:

Administration Personnel/ Public Relations/ Time Office Industrial Relations/ Contract Labour Estate/ Guest House


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PERSONNEL SECTION

Human beings are resources to an organization. Like any other material on economic

resources they represent an investment whose development and utilization require managing (i.e.

planning, organization, leadership and evaluation). There is a fundamental truth in the clich that

People are an organizations most important asset. In every organization, human resources areapivotal variable without which the inanimate assets are worthless. Like cash put into a savings

account, human resources can appreciate in value. Therefore, human resources need to be

understood to their proper perspective and utilized effectively to achieve the goals of an

organization. This requires that human resources must be managed and management implies that

work should be effectively completed with and through other people. The management process is

made up of four steps embracing the people dimension getting them, preparing them,

activating them and keeping them. It is these aspects of human resources, which this volume

deals with.

The management of human resources is a very complicated and challenging taskfor these who are entrusted with the successful running of an organization; and this implies

considerable knowledge of various aspects of Personnel Management, including that of

industrial law, psychology, sociology, administration, etc.

The discipline of personnel management has gained importance since

professionalism of management is now regarded as a must for the successful running of a

business or industrial enterprise. Executive have the moral obligation to the organization they

manage and the human resources they employ, which they can fulfill only when they have a

background of theoretical and conceptual knowledge of the subject.

This presupposes that they should not only have a thorough grounding in the

various aspects of handling human resources through proper education and training but should

also keep themselves abreast of the changes and trends that take place in their discipline.

I NDUSTRIAL RELATION SECTION

Industrial Relations are concerned with the relationship between management

and workers and the role of regulatory mechanism in revolving any industrial dispute. Industrial

Relations refers to a dynamic & developing concept which is not limited to the complex of

relations between trade unions and management but also refers to the general web of relations

normally obtained between employer and employees.

Industrial Relations are an integral aspect of social relations arising out of employer-

employee interaction in modern industries, the concept of Industrial Relations has been extended

to denote the relations of the state with employees and workers and their organization. Thus the

concept of IR is given due importance in all organization.


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Industrial Relations in context to IFFCO.

In IFFCO Industrial Relations is done by undergoing to following functions

Monthly meeting of Joint Management Council, Notice of meeting to beissued/compliance to be taken from concerned section/ minutes of meeting to be prepared

and issued / quarterly return to RLC, Abad on workers participation.

Maintaining Liaison with labor and other department of state and Central Government Renewal license of Factory, electrical license and license for LPG Providing Legal Assistance in Legal matters by attending various court cases Courts cases are pending before various courts viz. High courts, Industrial Tribunal,

Labor court and civil court and Conciliation authorities. Preparing written statements,

plaints, rejoinders, etc. in consultation with Advocates and to attend cases in the various

courts

Dealing with various Disciplinary matters

Arranging meeting of IR / Union Management meetings Bipartite / tripartite settlements Memorandum of settlements with Union from time to

time

Ensuring compliance of statutory requirement by contractors and IFFCO by periodicalinspection of records pertaining to several acts

Submission of statutory and non statutory returns to Government and H.OGUEST HOUSE & ESTATE:-

This section also comes under the purview of the P & A department. This section

looks after the guests resting, their facilities, theirlodging and boarding, their transportation to

the plant and various place related to the plant and their meeting arrangement for the above

mentioned meeting with the GM and the other officials from the Head Office.

Also Estate is related with the Housing and boarding of the employees of the

IFFCO cooperative and this deals with the improvement with the facilities given to the

employees according to their grades in their grades in their Designation and thus even though not

a big section and does not directly related in the productivity of the plant but indirectly have an

effect on the employees performance and their productivity. Hence it has to be seen that the

employees are getting the optimum from their plant and their surrounding and thus they can

produce the companys production a more efficient manner. Here also there is a duty allotted to

the different officials on a routine basis so that their guidance can be obtained and the attainders

at the Guest House and Estate can obtain their valuable ideas.


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Time Off ice:-

Time office is one of the most important section where attendance of all employees and

executives in duty are effectively monitored. It maintains regularly the punching cards, leave

records and various other functions through its totally computerized system.

There are five shifts in IFFCO

Morning shift: 6:00 am to 2:00 pm Second shift: 2:00 pm to 10:00 pm Night shift: 10:00 pm to 6:00 am General : 8:30 am to 5:00 pm

Attendance is one of the most important records of the employees capacity to work regularly.The main work of the time office is to record the exact timing of the entry and exit. This

recording of time is done through the punching machine. When the employee punches his card

the timing is recorded in the computer, which records the employees Attendance on that

particular day. Then print out of the no. of employees present during each shift is taken and

recorded in the daily attendance sheet which is filled daily by the time office and sent to the

personnel department for the verification of the no. of the employees present in the entire plant.

The other function of the time office is to record the attendance of employees as well as keep a

record of the overtime taken by the punching staff. If the employee is present for more than 3

days the time office notifies the respective department that the particular employee has been

absent and whether they have received any intimation from the employee of his absence.

Since malpractices can be done that is the employee punches his card and leaves the premises

before time and then returns back to punch his exit time, or it can be that some other person

punches for the entry of that particular employee, the time office sends in the attendance sheet to

the various departments where the head of that particular departments verifies whether the

employee is present or not or whether the head of that particular departments verifies whether the

employee is present or not or whether there was a false punching favoring that particular

employee.


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Another record that is maintained by the Time Office is the daily report which is send to the Sr.

Manager which contains the particular in each shift such as the punching clocks, record of any

notice board either through the management or through the union, any occurrence of accidents or

any other special occurrence which has taken place in the unit which is signed by the Time

Keeper endorsed by the supervision and the welfare offices. Other than this the duty of the time

keeper is to write down the statement showing the daily engagement of casual workers in a

particular department on that particular day and the total no. of them employed in the general

shift so that they are accounted for the daily wages.

The timekeeper also fills in the form of the statement showing the total strength of the unit and

the percentage of absenteeism of the punching staff below H2 grade. The attendance of the

officer grade above H1 grade is maintained in the registers of this respective department. These

registers are brought down to the time office and are checked by the supervisors as to how many

officers are present on that particular date in order to calculate the percentage of absentees in the

whole unit. The time office also keeps even reports of apprentices present.

Every month the salary of previous month is paid within the first week of the month. All the

reports maintained of employees of their attendance, or time, absenteeism etc are send to the

F&A dept. where in the wages and salaries are then calculated accordingly.

If the employ is working on shift basis then he cannot leave the premises until his reliever has

joint the duty. If his reliever happens to be on leave he has to continue working in the complete

shift on overtime wages. In such case he gets overtime of the whole shift of 8 hours, but if he

works overtime when there is a plant shutdown, he will be given overtime for the hours he has

worked, not for the entire shift. If the employee works on the national holiday he is given double

overtime, while on other holiday he is given only single overtime.

Labour Welfare and Social Security


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INTRODUCTION:- Labour welfare works aims at providing such service facilities and

amenities which enables the workers employed in an organization to perform their work in

healthy congenial surrounding conductive to good health and high moral.

Labour welfare is a comprehensive term including various services, benefits and facilities offered

by the employer. Through such generous fringe benefits the employer makes life worth living

for employees. The welfare amenities are extended in additional to normal wages and other

economic rewards available to employees as per the legal provisions.

Welfare Facility provided to the employee in IFFCO-kandla.

IFFCO has done a lot for its employees. Beings a cooperative it always believes in sharing its

benefits with the employee. Any person would be satisfied of he gets good pay and good facility

to live has/her life. If the employee is socially secured then the employee would put in his full

potential to carry out his duties and he will feel indebted to the organization and gives in his best.

There are two type of welfare facilities provided to the employees in IFFCO.

Statutory facilities.

Non-statutory facilities.

Welfare services may broadly e classified into two category:

Intramural activities:- which are provided within the establishment such as toilets, rest center,

canteen, uniform etc.

Excremental activities:- which are undertaken outside the establishment such as family

planning, child welfare, co-operative stores credit societies, vocational guidelines, holiday, home

leave, travel facilities.

Intramural activities:

Drinking water Toilets Washing and bathing facilities Rest shelters


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Uniform and protective clothing Recreation facilities. Canteen.

Extramural activates:-

Housing Education facilities Maternity benefits Transportation Sport facilities Vocational training Holiday home Social insurance.

The welfare board at corporate level consisting of equal representative of the workmen

and management, has been planning, supervising, monitoring and evaluating various measure.

Labour welfare work may also be divided into categories.

Statutory welfare facilities:

IFFCO provides all statutory welfare measures to its employees as per the factory act 1948:

Washing Facilities: Facilities for storing and draying clothing Facilities for sitting. Changing rooms. Drinking Water Latrines and urinals. Lightings. Ventilation Medical Faculties Reimbursement of expenses of medical check-up. First-aid appliances and ambulance room. Canteen.


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Noon statutory labour welfare facilities:-

Township. Schools Educational facilities Ladies club Liveries Staff buses Sport and cultural activities Bonus Welfare fund. Leave provisions.

FIRE AND SAFETY:-

Maintaining and Monitoring safety at work in the plant. Monitoring and control of all the facilities where ever hazards is involved as per

fire rules for handling of hazardous chemicals.

Regular servicing/monitoring of all fire and safety equipments in and aroundplant.

Conducting and coordinating annual safety audit. Mock drill practice for emergency preparedness. Regular updation of On-site and Offsite emergency plan. Conducting various competition activities to increase awareness programs. Conducting various competition activities to increase awareness of safety.


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A STUDY ON CONTRACT LABOURS

An Act to regulate the employment of contract labour in certain establishments and to provide

for its abolition in certain circumstances and for matters connected therewith.

OBJECTIVE OF THE STUDY

The Objective of the Contract Labour Regulation and Abolition Act, 1970 is to prevent

exploitation of contract labour and also to introduce better conditions of work. A workman is

deemed to be employed as Contract Labour when he is hired in connection with the work of an

establishment by or through a Contractor. Contract workmen are indirect employees. ContractLabour differs from Direct Labour in terms of employment relationship with the establishment

and method of wage payment. Contract Labour, by and large is not borne on pay roll nor is paid

directly. The Contract Workmen are hired, supervised and remunerated by the Contractor, who

in turn, is remunerated by the Establishment hiring the services of the Contractor.

RESEARCH METHODOLOGY

The source of collection of data of the project is as follows:

PRIMARY DATA: The study complies of the primary data as there was a face to face

interaction with the contractors of IFFCO. The interview conducted was unstructured one which

is one of the types of interviews and it comes under the Qualitative Interviews.

SECONDARY DATA: The collection of secondary data was through the websites of the

company, the books and some forms which contains the rules & regulations of the company. For


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the study of the project the data collection as also done through the books of Contract Labour

(Regulation & Abolition) Act, 1970.

SAMPLING PLAN: The data was almost collected through the Industrial Relations department

of Personnel section.

AREA OF STUDY: The area of the study was plant of IFFCO at Kandla

INTRODUCTION TO CONTRACT LABOUR

In this age of globalization, the employment structure across the globe has been undergoing

changes in all nations. In order to effectively compete in a globalized market, one needs

flexibility relating to labour, capital, or bureaucracy; this allows a producer to adapt to the fast -

changing world and compete effectively. In particular, it is argued that stringent labour

regulations not only put domestic producers at a disadvantage but also determine foreign direct

investment and eventually impact adversely on investment, output and employment. Over the

last two decades, a number of countries have attempted to liberalize their respective labour

markets and have also amended their labour laws so as to make them more investment - andemployment -friendlya process that has weakened job security and collective bargaining. In

Bangladesh, for example, globalization is found to reduce the number of employees working

under permanent contracts and to create nontraditional employment structures including part

time , casual and contract labour In India too we observe an increasing use of casual

/contractor other such non informal labour over time.

Among different kinds of employment that have been created in various economies to

circumvent labour laws, contract labour is becoming one of the prominent forms. If we assume

that such a flexible form of employment is indeed necessary in a competitive world, then how do

we extend social protection to this section of labour? It has been observed in Bangladesh thatwith such informalization of labour, social security of workers, in general, have decreased and

workers are often terminated without benefits.

In India, contract labourers are protected by the Contract Labour Regulation and

Abolition Act, 1970. A contract labour is defined in the Act 3 as one who is hired in connection

with the work of an establishment by a principal employer who is the firm owner or a manager


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through a contractor. The act makes a number of provisions for the welfare of the contract

workers including payment of minimum wage , social security benefits and others. At various

points of time Government amended the law with a view to make it more labour friendly.

However, such amendments can be of help to the workers only if implementation of the law is

ascertained.

Definitions.

Appropriate Government means-

In relation to an establishment in respect of which the appropriate government under theIndustrial Disputes Act, 1947 (14 of 1947), is the Central Government:

In relation to any other establishment, the government of the State in which that the otherestablishment is situated:

A workman shall be deemed to be employed as Contract Labour in or in connection withthe work of an establishment when he is hired in connection with such work by or through a

contractor with or without the knowledge of the principal employer.

Contractor, in relation to an establishment means a person who undertakes to produce agiven result for the establishment, other than mere supply of goods or articles of manufacture

to such establishment, through contract labour or who supplies contract labour for any work

of the establishment and includes a subcontractor:

establishment means(i) any office or department of the government or a local authority, or

(ii) any place where any industry, trade, business, manufacture or occupation is carried

on.

Principal employer means-

(i) in relation to any office or department of the Government or a local authority, the

head of that office or department or such other officer as the Government or the local

authority, as the case may be, may specified in this behalf.

(ii) in a factory, the owner or occupier of the factory and where a person has been named

as the manager of the factory under the Factories Act, 1948, the person o named,

(iii) in a mine the owner or the agent of the mine and where a person has been named as

the manager of the mine, the person so named,


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(iv) in any other establishment, any person responsible for the supervision and control

of the establishment.

Workman means- any person employed in or in connection with the work of anyestablishment to do any skilled, semi- skilled or unskilled manual, supervisory, technical or

clerical work for hired or reward, whether the terms of employment be express or implied,but does not include any such person-

(i) who is employed mainly in a managerial or administrative capacity:or

(ii) who, being employed in a supervisory capacity draws wages exceeding fivehundred rupees per mensem or exercises, either by the nature of the duties

attached to the office or by reason of the powers vested in him, functions

mainly of managerial nature.

Who is outworker, that is to say, a person to whom any articles or materials is given out by oron behalf of the principal employer to be made up, cleaned, washed, altered, ornamented,

finished, repaired, adapted or otherwise processed for sale for the purposes of the trade or

business of the principal employer and the process is to be carried out either in the home of

outworker or in some other premises, not being premises under the control and management

of the principal employer.

The ADVISORY BOARDS AS PER THE CONTRACT LABOUR ACT, 1970

CENTRAL ADVISORY BOARDS:The central government shall, as soon as may be, constitute a Boardto be calledthe Central

Advisory Contract Labour Board to advise the Central Government on such matters arising

out of the administration of this Act as may be referred to it and to carry out other functions

assigned to it under this Act.

(1) The Central Board shall consist of(a) A chairman to be appointed by the Central Government(b) The Chief Labour Commissioner (Central)(c) Such number of members, not exceeding seventeenbut not less than eleven, as the

Central Government may nominate to represent that Government, the Railways,

the coal industry, the mining industry, the contractors, the workmen and any other

interests which, in the opinion of the Central Government, ought to be represented

on the central board.


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(2) The number of persons to be appointed as members of each of the categories specified insubsection(2), the term of office and other conditions of service of, the procedure to be

followed in the discharge of their functions by, and the manner of filling vacancies among,

the members of the Central Board shall be such as may be prescribed:

Provided thatthenumber of members nominated to represent the workmen shall not beless than the number of members nominated to represent the principal employers and the

contractors.

STATE ADVISORY BOARD: (1) The State Government may constitute a Board to be called

the State Advisory Contract Labour Board to advise the state

government on such matters arising out of the administration of this Act as may be referred to it

and to carry out other functions assigned to it under this Act.

(2) The State Board shall consist of

(a) a chairman to be appointed by the State Government

(b) thelabour commissioner or in his absence any other officer nominated by theState Government in that behalf

(c) such number of members, not exceeding eleven but not less than nine, as the state

government may nominate to represent that Government, the industry, the contractors, the

workmen and any other interests which, in the opinion of State Government, ought to be

represented on the State Board.

(3) The number of persons to be appointed as members of each of the categories specified

in sub- section (2), the term of office and other conditions of service of, the procedure to

be followed in the discharge of their functions by, and the manner of filling vacanciesamong, the members of the State Board shall be such as may be prescribed:

Provided that the number of members nominated to represent the workmen shall not be

less than the number of members nominated to represent the principal employers and the

contractors.


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Contract Labour Work At IFFCO Kandla

The contractor at IFFCO kandla are fully responsible for all matters arising out

of the performance of the contract and comply at his own expenses with all the laws enactment/

orders/ regulations/ statutory obligations, whatsoever, of the government of India/State govt/ any

statutory or non statutory authority .The contractor hereby agrees to indemnify and keep

harmless the owner / consultant against all liabilities in this respect. The contractor in IFFCO are

fully and exclusively responsible for the work, conduct, supervision and control of all their own

personnel and personnel employed by the sub contractor engaged by them and owner /

consultant shall in no way be responsible for supervision, control etc. of these personnel. Since

the contractor have full and exclusive supervision and control over the contract awarded to him

and the people engaged for this purpose, the contractor or his sub contractor, as the case maybe, shall be the principal employer under the Contract Labour (Regulation & Abolition) Act.

1970 and the contractor of IFFCO must register himself as such, and the owner/ consultant have

no responsibility and liability on this

Advantages and Dis-Advantages:

Advantages of Using Temporary Labour

When we use temporary labour we should be getting an employee that has already beenscreened and interviewed by the temp agency. If we work closely with the same agency

they should be able to get a feel for what type of employees we are looking for. This also

saves our time having to go through the normal hiring process.


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If we are not satisfied with the employee. Well the solution to that is simple. Ask theContractor to send out someone else. We are not required to use anyone he sends to us.

There are a couple of other advantages to using a temporary labour. One is the ability tolet go the employee when we no longer need them. All we have to do is make a call or

give a letter and the Contractor will handle the employee.

The other advantage is the ease with which payroll is handled. Thats because thecontractor handles the employees payroll. He deals with all the taxes as well as the

benefits the employee might be receiving. All we have to do is pay the bill.

Economic and financial feasibility - the contract Labour are able to do a better job interms of supervision since they have a fear of loss of job as compared to regular workers.

As such the principal employer has no liability towards the contract labours but hisliability is limited to the act of payment of bill raised by the contractor.

Under sec. 16 (1) (c) of contract labour Act if the contract labour appointed by thecontractor is more than 100 then it is the duty of contractor to provide Canteen for the

Labours.

As the contract Labours are appointed by contractor there will be no chance for LabourUnions.

Dis-Advantages of Using Temporary Labour

As per Sec. 10 of Contract Labour Act. We can not appoint them on machine work butonly loading and un-loading work can be given to them.

However, being the principal employer, we have to ensure that the contract employeesare getting their salary from the contractor in time. It is the responsibility of the principal

employer to ensure that EPF/ESI in respect of these workers are remitted by the

contractor in time. We have also to ensure that bonus is given to those who are eligible

for. Besides, we have to obtain permission from the appropriate authorities for hiringemployees through a contractor.

(We can recover the sum paid )

Also if the contractor dose not complies with the statutory provisions under sec. 21regarding payment of wages the Principal employer have to pay the same.


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The downside of hiring temporary employees? The main problem actually comes fromwhat happens when we find an employee wed like to keep. Most temp agencies require

their workers to sign a contract. Most are either three or six months in duration. The

contract keeps the worker from jumping ship if they are offered a job. This gives the

company that is using the employee usually only two choices. One is to buy out the

contract. This can often cost the company thousands of rupees. It's how the agency is able

to still make its money on the worker. The other option is to keep the worker on until the

employees contract runs out. Either way our business will pay a price. Its up to us to

decide whether the employee is worth the price.

As the employees are appointed by contractor we have no chance to judge their workingability before appointing them.


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THE ENGAGEMENT PROCESS OF CONTRACT LABOUR AT IFFCO

KANDLA

A Material Purchase Requisite (MPR) is raised by the indenter. i. e the department whois in need of labours will raise their request through an MPR and further it is send to the

Material Department.

The Material department will check the MPR regarding the information and details givenin the MPR by the indenter.

There is a vendor list category given in the MPR on which the inquiry is issued by thematerial department for its approval. The approved vendors will then send their

quotations to the material department.

The material department will then make Quotation Comparison Statement (QCS) of thevendors and then it will be send to the indented department for their recommendations.

The indented department , will then recommend for the placement of order to the lowestoffer (L1) basis or proprietary offer basis.

On that basis the material department will prepare order for the particular vendor. Thereis either work order or purchase order prepared as per the recommendations of the

indentor with the standard terms or conditions for work order or purchase order.

If the purchase order is placed and the party which execute the order with the stipulateddelivery period than it is seemed that the order is executed or it is closed. In the workorder the party works at the site of the indentor or at their own place. The work order is

closed after the completion of duration period mentioned in the work order. The duration

of the work order can be for six months or twelve months or it can be extended if needed.

REGISTERATION OF THE ESTABLISHMENT

If the principal employer is employing 20 or more workers than it is necessary for him toget registered through FORM No.1which is the form of Application for registration of employing

Contract labour. The principal employer has to make the registration within a stipulated period of

time to the registering officer (Asst. comm. Of Labour ). If the application for the 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.


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List of Forms to be filled up for various purposes related to Contract Labor

Sr. No Description Form No. Rule No

1 Application for registration of employing contract labor i. 17(1)2 Certificate of registration ii. 18(1)3 Register of establishments iii. 18(2)4 Application for License iv. 21(1)5 Form of Certificate (By principal Employer) v. 21(21)6 Government of Gujarat (Issue of License) vi. 257 Application for renewal of license vii. 29(2)8 Application for temporary registration of establishment

employing contract labor

viii. 32(2)

9 Temporary certificate of registration ix. 32(3)10 Application for temporary license x. 32(2)11 Govt of GJ Office of Licensing officer (Temporary

License)

xi. 32(3)

12 Register of particulars of Contractors xii. 7413 Register of Workmen employed by Contractor xiii. 7514 Employment card xiv. 7615 Service Certificate xv. 7716 Muster roll xvi. 78(2)(a)17 Register of Wages xvii. 78(2)(a)18 Form of register of wages cum Muster roll xviii. 78(2)(a)19 Wage slip xix. 78(2)(b)20 Register of deduction for Damage loss xx. 78(2)(d)


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21 Register of tines xxi. 78(2)(d)22 Register of Advances xxii. 78(2)(d)23 Register of Overtime xxiii. 78(2)(e)24 Return to be sent by the Contractor to Licensing Officer

half year ending

xxiv. 82(i)

25 Annual return of principal employer to the registering

officer (Annexure to form)

xxv. 82(2)

DOCUMENTS & FORMALITIES REQUIRED TO BE MAINTAINED BY THE

CONTRACTORS EMPLOYING TEN OR MORE WORKERS UNDER CONTRACT

LABOUR (REGULATION & ABOLITION) ACT,1970

LICENSING OF CONTRACTORS

A licence is to be obtained for engaging 10 (ten) or more labours by a Contractor by

depositing fee for licence and Security Deposit. The application of Licence must accompany

FormV to be obtained from IFFCO. This licence is to be renewed. An application for renewal

of the license should be made atleast 30 days before the date on which the license expires.

Application should be made in Form no. IV. The contractor shall abide by all the conditions laid

down in the license.

Subject to the provision of the act, a license under sub-section (1) may contain such

conditions including, in particular, conditions as to hours of work, fixation of wages and other

essential amenities in respect of contract labour as the appropriate government may deem fit to

impose in accordance with the rules, if any, made under Section 35 and shall be issued on

payment of such fees and on the deposit of such sum, if any, as security for the due performance

of the conditions as may be prescribed.

A licence is to be obtained for engaging 10 (ten) or more labours by a Contractor by

depositing fee for licence and Security Deposit. The application of Licence must accompany

FormV to be obtained from IFFCO. This licence is to be renewed. An application for renewal

of the license should be made atleast 30 days before the date on which the license expires.


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Application should be made in Form no. IV. The contractor shall abide by all the conditions laid

down in the license

Validity & Renewal

Every licence granted or renewed shall remain in force till 31st December of that year only.Change in the particulars specified in the Licence is to be intimated to Licensing Officer with the

particulars & the reasons thereof. On good & sufficient reasons, Licence may be amended by

Licensing Officer. Contractor has to apply to Licensing Officer for renewal of licence on or

before 31st October.

Revocation, suspension & amendment of license

If the licensing officer is satisfied, either on a reference made to him in this behalf or otherwise,

that-

(a) a license granted under section 12 has been obtained by misrepresentation or suppression of anymaterial fact, or

(b) the holder of license has, without reasonable cause, failed to comply with the conditionssubject to which the license has been granted or has contravened any of the provisions of this

Act or the rules made thereunder,

then without prejudice to any other penalty to which the holder of the license an opportunity

of showing cause, revoke or suspend the license or forfeit the sum, if any, or any proportion thereof

deposited as security for the due performance of the conditions subject to which the license has

been granted. Subject to any rules that may be made in this behalf, the licensing officer may vary or

amend a license granted under section 12.

Security Deposit

The Contractor has to deposit the Security amount as prescribed by the State Govt.

RESPONSIBILITY FOR PAYMENT OF WAGES (The Minimum Wages Act, 1948)

.A contractor shall be responsible for payment of wages to each worker employed by him as

contract labour and such wages shall be paid before the expiry of such period as may be

prescribed.

Every principal employer shall nominate a representative duly authorized by him to be

present at the time of disbursement of wages by the contractor and it shall be the duty of such

representative to certify the amounts paid as wages in such manner as may be prescribed.

It shall be the duty of the contractor to ensure the disbursement of wages in the presence of

the aurhorised representative of principal employer.


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In case the contractor fails to make payment of wages within the prescribed period or makes

short payment, then the principal employer shall be liable to make payment of wages in full or the

unpaid balance due as the case may be, to the contract labour employed by the contractor and

recover the amount so paid from the contractor either by deduction from any amount payable to the

contractor under any contract or as a debt payable by the contractor.

Payment of Minimum Rate of Wages: The Act says that, where in respect of anyscheduled employment minimum wages have been fixed, the employer shall pay to every

employee wages at a rate not less than the minimum rate of wages fixed for that class of

employees in the employment. Such wages shall be paid without any deductions except as

may be authorized. Where the contract wage rate is higher, the statutory obligation does

not come into play.

At IFFCO the wages are paid to the labours as per the Minimum Wages Act, 1948. The

contractor must pay wage rate as fixed and/or revised as per the Minimum Wages Act1948 in the

presence of the Authorised representative of the section/department. He also has to make thepayment of overtime for extra work at double the rate of normal wages. The payment of the wages

is done in cash. The contractor must maintain a wage register which is to be duly attested by the

Authorized representative of the section/department.

The revised minimum wages for the period from 01/04/2010 to 30/10/2010 are as follows.

Fixing Hours for a Normal Working Day: Where minimum wages have been fixed, theappropriate Government may--- -

(a) Fix the number of hours of work which constitutes a normal working day,inclusive of one or more specified intervals;

(b) Provide for a day of rest in every period of seven days and for payment ofremuneration in respect of such day of rest;

(c) Provide for payment for work on a day of rest at a rate not less than the overtimerate.

Rates of Overtime: where a labour, whose minimum rate of wages is fixed under thisAct, by the hour, by the day or by such longer wage- period as may be prescribed, works

Category unskilled Semi-skilled Skilled Clerk

Rate 151.9 156 160.9 164.2

132.5 133.8 136.4 164.4


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overtime, the employer shall pay him for every hour or for part of an hour so worked in

excess, wages at the rate fixed for overtime work under the Act or under any law of

appropriate Government in force, whichever is higher.

Wage Period: a wage period to be fixed in respect of which wages shall be payable. Thisperiod shall not exceed one month, wages to be paid directly to the worker or other personauthorisde by him in this regard.

Disbursement of Wages: It shall be the duty of the contractor to ensure the disbursementof wages in the presence of the authorized representative of the principal employer. In

case the contractor fails to make payment of wages within the prescribed period or make

short payments than the principal employer shall be liable to make payment of wages in

full or the unpaid balance due as the case may be, to the contract labour employed by the

contractor and recover the amount so paid from the contractor either by deduction from

any amount payable to the contractor under any contract or as a debt payable by the

contractor.

Notice Showing Wage period: A notice should be displayed at the place of work inEnglish and Gujarati and one copy should be sent to Gujarat Licensing Officer showing

the following: (a) Rate of Wages (b) date of payment of wages (c) Hours of work (d) wage

period (e) name & address of inspecting officer (f) date of payment of unpaid wages (g)

place and time of disbursement of wages.

REGISTER OF PERSONS EMPLOYED: A register in Form XIII is to be

maintained in respect of persons employed by the contractor. As per Rule 75, Form

No.13 is to be filled.

EMPLOYMENT CARD: An employment card is to be issued to all the employees

in Form No. XIV as per Rule No 76 ,within three days of the employment.

SERVICE CERTIFICATE: A service certificate in Form XV is to be issued on

Termination of any employee and payment should be made within the second day.

REGISTERS TO BE MAINTAINED:

Register of Contractors: every principal employer shall maintain in respect of each registeredestablishment a register of contractors in Form XII

In respect of establishments which are governed by the payment of wages Act, 1936

and the rules made thereunder, the following registers and records required to be maintained by

a contractor as employer under those Acts and the rules made thereunder shall be deemed to be

registers and records to be maintained by the contractor under these rukes, namely:-


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1. Muster Roll - Form No.XVI2. Register of Wages- Form No..XVIII3. Register of Deductions- Form No. XX4. Register of Overtime- Form No. XXIII5. Register of Fines- Form No. XXI6. Register of Advances- Form No XXII

Every principal employer shall, within in fifteen days of the commencement or

completion of each contract work under each contractor, submit a return to the Inspector,

appointed under Section 28 of the Act, intimating the actual dates of the commencement or as thecase may be, completion of such contract work, in Form vi-B

Every Principal Employer of a registered establishment shall send annually a return in

Form XXV so as to reach the Registering Officer concerned not later than the 15th

February

following the end of the year to which it relates.

INSURANCE: Risk and uncertainty are incidental to life. A labour may meet an untimely

death. He may suffer from accident; destruction of property, fire, sea perils, etc. there is risk as

well as insecurity. It is to provide against risk and insecurity that insurance came into being.

Insurance does not avert or eliminate loss arising from uncertain events, it only spread the lossover a larger number of people who insure themselves against that risk.

Every contractor is liable to have insurance of all the labors under him. He has to submit the copy of insurance challan to IFFCOKandla. At the time of any accidental death of labour the contractor is liable under the above said

act to pay compensation to the family members/nominee.

IFFCO is liable as principal employer under the above said act to keep a watch that all thecompensation is paid to the contract labour.

PROVIDENT FUND: It is obligatory on the part of the contractor to arrange for deductions

towards PF from the date of joining of an employee. In view of this, contractor will arrange

for payment of contribution of PF of the employees engaged by him from the wages of his

employees and matching contribution and matching contribution of the contractor from the

date of joining of employee.


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The contractor shall extend PF benefits to all employees who have completed continuous

service of three months as provided under the provident Fund Scheme, 1952. The contractor

shall get his concern/ establishment covered under the Employees Provident Fund directly

with appropriate Regional Provident Fund Commissioner,.

WORK ORDER COPY: A copy of work order is given to the contractor aftersanctioning the party for the concerned work on the basis of the lowest bid rate. The Work

order specifies the terms and conditions of the work order and also mentions the validity

period of the contract.

SEAL: in all the registers, forms, documents, identity cards, Leave cards, Employment

Cards, and other records maintained by the contractors under Contract Labour (Regulation &

Abolition) Act and other labour laws there must be the seal of IFFCO as well as of the

contractor concerned.

OBLIGATIONS OF THE PRINCIPAL EMPLOYER

The principal employer must have to get the establishment registered under section 7 The principal employer should not employ contract labour without obtaining the

registration certificates and to cease employing contract labour if registration is granted

under the act. Under section 8

The principal employer shall not employee labour unless the contractor has taken thelicense.

The principal employer should provide the amenities to the contract labour in the event ofthe failure of the contractor to do .under section 20

The principal employer should nominate a representative duly authorized by him to bepresent at the time of disbursement of wages by the contractor.

For the representative so nominated certify the amounts paid to the contract labour aswages. The principal employer should also ensure payment of minimum wages by the

contractor.

The principal employer has to make the payment of wages or to make the payment ofunpaid balance due to the workman in the event of the failure of the contractor to do so.


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The principal employer has to submit annually a return in Form XXV so as to reach theregistering officer concerned not later than 15

thFebruary following the end of the year to

which it relates to.

The principal employer should not deal directly with contract labour, any correspondence,etc.

OBLIGATIONS OF THE CONTRACTORS

The contractor undertakes to comply with all the relevant provisions of the various rules and acts

framed thereunder relating to the employment of contractlabour by the contractor, such as:

a. The Contract Labour (Regulation & Abolition) Act, 1970 and the Central rules framedthereunder.

b. The Factories Act, 1948c. The workmens Compensation Act 1932d. The Employees Provident Fund Act and misc Provision Act, 1952e. The minimum wages Act, 1947f. The inter state Migrant Workmen(Regulation of Employment & Conditions of Services)

Act. 1979

g. The Employer State Insurance Act, 1948h. The Provision of Industrial Disputes Act 1947i. The payment of Bonus Act 1965j. Any other present, future Acts/Rules may be enacted/framed/made applicable by the

central government and is applicable to the contract labour from time to time.

Any Civil / Criminal liability arising out of non compliance of the provision of anyAct or Rules as applicable to the contract labour on account of the failure of the

failure of the contractor will be at the sole risk, responsibility and the cost of the

contractor.


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Should the management of IFFCO suffer any civil/criminal damages/ liability or anyother kind of financial liability or cost, the same will be duly compensated/

reimbursed/ borne by the contractor.

The contractor shall give his telephone number and address to IFFCO of the placewhere he can be contacted in case of labour troubles , any other requirements etc.

IFFCO will be entitled to deduct any sum payable by him and which sun/sumsIFFCO is required to pay as Principal Employer on account of contractors default or

otherwise, directly from the bills payable to the contractors in terms of this contract.

The contractor shall notify the date and time for payment of wages to the authorizedrepresentative of Management of IFFCO. He should make payment not less than the

Minimum Wages as modified by the Government

The contractor shall make the required registers, records and also submit requiredreturns under the relevant status applicable to him under intimation to IFFCO from

time to time.

No person who is not adult will be employed as contract labourviz not less than 18years of age.

The contractor shall communicate abour the commencement and completion of thecontract to the management of IFFCO.

The labourers permitted inside the factory shall be engaged in the specific workunder the contract and should not be employed on other jobs inside the factory

without the prior written specific approval of IFFCO.

The contractors labours/supervisors have to observe the shift timings etc. asprescribed under the Factories Act, 1948 and Rules framed thereunder and intimate

the same to IFFCO accordingly. For any odd hours they will have to take written

permission from IFFCO.

Entire Factory area is declared as Non-Smoking area, except where permissible. The contractor

shall ensure to observe this caution carefully


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WELFARE AND HEALTH OF CONTRACT LABOUR

CANTEENSThe appropriate Government may make rules requiring that in every establishment-

(a) To which this Act applies,(b) Wherein work requiring employment of contract labour is likely to continue for such

period as may be prescribed, and

(c) Wherein contract labour numbering one hundred or more is ordinarily employed bya conbtractor.

One or more canteen shall be provided and maintained by the contractor for the use of

contract labour.

RESTROOMSIn every place wherein contract labour is required to halt at night in connection with the

work of an establishment.

(a) To which this Act applies,(b) Wherein work requiring employment of contract labour is likely to continue for

such period as may be prescribed,

There shall be provided and maintained by the contractor for the use of contract labour

such number of restrooms or such other suitable alternative accommodation within such time

as may be prescribed.

The restrooms or the alternative accommodation to be provided under sub- section

(1) shall be sufficiently lighted and ventilated and shall maintained in clean and comfortable

condition.

OTHER FACILITIESIt shall be the duty of every contractor employing contract labour in connection with the

work of an establishment to which this Act applies to provide and maintain

(a) A sufficient supply of wholesome drinking water for the contract labour atconvenient places;


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(b) A sufficient number of latrines and urinals of the prescribed types so situated as to beconvenient and accessible to the contract labour in the establishment;

(c) Washing facilities.

FIRST AID FACILITIES

There shall be provided and maintained by the contractor so as to be readily

accessible during all working hours a firstaid box equipped with the prescribed

contents at every place where contract labour is employed by him.

ADMINISTRATION OF CONTRACT LABOUR

Work Order is given by the concerned deptt. to the Contractor. Contractors fill in an application Form for engaging contract labour every

month /new entry.

Concerned department recommends the no. of labourers. Safety department imparts training to the labourers. Personnel department gives its approval only after being assured about no. of

the workers in the license of the contractor & workman compensation

Insurance.

Employment Card/Gate pass is issued by the Security department. Gate pass is issued only for a month. Workmen who have gate pass can enter in the premises


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What precautions should be taken while engaging Contract Labour?

(1) Registration Certificate of Principal Employer(2) License of the Contractor(3) Selection of contractor(4) Terms and conditions of the agreement(5) Appointment of contract labour(6) Supervision and control(7) Disciplinary matters(8) Payment(9) Statutory compliance

LIMITATION OF THE STUDY

Every study has certain limitations & restrictions. While Contract labour

is such an area in which a researcher has to depend on the official data provided by

the Organisation & Contractors. Detail study in the topic and that to direct

interaction with the contract labours at their work place & dwelling can find out

more learnings.

Recommendations and Suggestions

Communication between contractor and labour should be transparent Contractor should give weekly off , room facilities and medical facilities to the labours Minimum wages should be paid to unskilled labours To provide safety measures Security contract should be commissioned under private security agency Payment should be made under the payment of wages act and minimum wages act.


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BIBLIOGRAPHY

BOOKS

Elements of Mercantile Law by N.D. Kapoor

IFFCOs MATERIALS

Registers and Forms of Contract Labour

WEBSITE

www.Iffco.nic.ins

Documents

A Study on Contract Labour at Iffco Kandla