Labour Agreement In India

Labour Agreement In India

After the CTC, the primary employer follows in the contractor`s footsteps if the contractor does not comply with its legal obligations. The consequences include the assumption of wages and social security contributions by the main employer, declarations of work, the provision of certain facilities such as canteens, nurseries, first aid facilities, toilets, etc. The law authorizes the primary employer to recover these amounts from the contractor, but effective recovery would depend on the contractor`s financial capacity to meet its obligations. To dismiss a worker in a factory (or other companies) employing 100 or more employees, prior authorization from the competent work service must be obtained from the employer and the worker must be declared: the risk of misclassification is also lower if the contract work does not work exclusively for the main employer. Trade unions are subject to the Trade Union Act 1926 (TU Act). The TU Act defines the mechanism for registering trade unions, but does not require registration. Some state-specific statutes, such as the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act 1971 (Maharashtra TU Act), provide that a union with at least 30% of the total number of workers employed in a company can apply to be recognized by an employment tribunal. Once the union is recognized, an employer`s refusal to bargain collectively in good faith is considered an unfair labour practice. If an aggrieved worker agrees, the matter can be resolved through mediation by the ICC or the CCA. However, cash benefits cannot form the basis of an investment. Stopping contract work allows for flexibility and cost advantages and also relieves the company with administrative and compliance requirements.

However, companies must consider certain legal risks under the CTC in the recruitment of temporary workers in order to prevent this contract work from ending as an expensive position on their financial side. Indian labour law does not provide for the automatic transfer of workers in the context of a business sale without obtaining the agreement of the workers.