Difference between "contract labour and outsourcing" & term "perennial and permanent" under Contract Labour Act - India

To begin with pertained topic it can say that it is not the nomenclature of the term but the real intent to decide when it is a Contract Labour or outsourcing. It can also be said like contract labour reflect manpower where as outsourcing reflects the job or the activity.

Neither the term “Contract Labour” nor the term “outsourcing” has been defined under Contract Labour Act rather it has been defined about term “workman”. Hence, while discussing about term “Contract Labour” and “outsourcing”, the intention appears to be same. Term “outsourcing” has been used very intelligently to create confusion between the two.

Further the term “Contract Labour” applied to man power engaged by contractor to produce a given result for principal employer where this man power has no direct relationship of employer-employee with the principal employer. This includes the simple supply of manpower to principal employer by contractor where contractor is not involved in specified activity.

Now to explain about term “Outsourcing”, this describes more or less same meaning viz. of “contract labour”. This means that when an employer engages someone to deliver a specified result where employer is not involved with the man power engagement or supervision or control activity over such man power.

Now, we will discuss difference between terms “perennial” and “permanent” work under contract labour act.

To begin with neither the term “perennial” nor the “permanent” has defined under the Contract Labour Act.

But, the word “perennial” has been used under sec. 10(2)(b) where it is said that if the work exists for sufficient duration will be considered as of “perennial” nature.

Further Act nowhere prohibits engagement of contract labour on any job or activity or service unless it is prohibited by the Appropriate Government under the provisions of the Act.

But in this regard only Andhra Pradesh State Government has given some clarity with amendment in said Act in the year 2003 stating about on which contract labour can be deployed.

We hope from above you will get some clarity on subject matter.

Thank you.

http://www.transerve.in/

Transerve Advisors Team

Transerve Advisors Private Limited.

A-55, Pravasi Industrial Estate,

Vishveshwar Road, Goregaon (E),

Mumbai – 400 063.

IMPORTANT:

Information in this blog is being provided as-is without any warranty/guarantee of any kind.

This blog is intended to provide information only. If you are seeking advice on any matters relating to information on this blog, you should – where appropriate – contact us directly atsupport@transerve.in  with your specific query or seek advice from qualified professional people.

We encourage you to take steps to obtain the most up-to-date information and to confirm the accuracy and reliability of any information on this blog in general by directly communicating with us.


Disclaimer – IMPORTANT

Privacy Policy:-

We do not share personal information with third-parties nor do we store information we collect about your visit to this blog for use other than to analyze content performance through the use of cookies (see below), which you can turn off at anytime by modifying your Internet browser’s settings. We are not responsible for the republishing of the content found on this blog on other web sites or media without our permission.

Terms and Conditions:-

All content provided on this blog is for information purpose only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this blog site. The owner will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information.

Blog Comments Policy:-

The owner of this blog reserves the right to edit or delete any comments submitted to this blog without notice. The owner of this blog is not responsible or liable for any comments made by others on this blog.


Cookie Policy:-

This site uses cookies which are small text files that are placed on your machine to help the site provide a better user experience. In general, cookies are used to retain user preferences and provide anonymous tracking data to third-party applications such as Google Analytic.

As a rule, cookies will make your browsing experience better. However, you may prefer to disable cookies on this site and on others. The most effective way to do this is to disable cookies in your browser. We suggest consulting the Help section of your browser or taking a look at the About Cookies website (http://www.aboutcookies.org/ ) which offers guidance for all modern browsers.


I hope the above Disclaimer will give you my concern for your privacy and security and would like to inform that this blog is only founded for the purpose of information purpose only.


Thank you.