Dear All,
Kindly clarify whether a company can hire employees on contract basis with a clause "no work no pay". To be more specific, my company supply drivers to the client on monthly charges with one year of agreement. Though we have clause in the agreement which says that either party have to give one month notice or money in lieu of canceling the agreement before time, many times clients do not honor the same and abruptly discontinue the services. In the process we end up paying salary to the driver without any work and end up in loss.
My questions are:
1) Can we hire these drivers with a condition that in such a situation they will not be paid anything till the time we get new work for them?
2) What is its legal implication? In such case how their PF, ESI & bonus things can be tackled?
3) What are the other arrangements that we can have with them in the purview of law?
Thanks & awaiting your earliest response.
Regards,
From India, Delhi
3Kindly clarify whether a company can hire employees on contract basis with a clause "no work no pay". To be more specific, my company supply drivers to the client on monthly charges with one year of agreement. Though we have clause in the agreement which says that either party have to give one month notice or money in lieu of canceling the agreement before time, many times clients do not honor the same and abruptly discontinue the services. In the process we end up paying salary to the driver without any work and end up in loss.
My questions are:
1) Can we hire these drivers with a condition that in such a situation they will not be paid anything till the time we get new work for them?
2) What is its legal implication? In such case how their PF, ESI & bonus things can be tackled?
3) What are the other arrangements that we can have with them in the purview of law?
Thanks & awaiting your earliest response.
Regards,
From India, Delhi
Dear
Drivers will come within the purview of Blue collared workforce.There is no prohibition in asking them to report when they have work. Such Drivers are classified as acting Drivers.You can have a condition to that effect and contract should state so .The daily wages paid should match the minimum wage of that particular category notified in the relevant State .ESI &PF deduction can be on actual days worked .This can be done if they agree for the transition from "full time drivers" to "acting drivers".
In your case it looks like that having lost the contract you need time to deploy them to a new Principal Employer.For this you need their agreement or consent.Being Blue collared they will not wait either they will find a new job or litigate.Please be careful.The other option is to give them retrenchment compensation say 15 days salary for every year of service plus one months pay and complete their F &F.
With Regards
Advocates & Notaries & Legal Consultants for Staffing & Recruiting Industry
E-mail : rajanassociates@eth,net,
-9025792684-9025792634
.
From India, Bangalore
Drivers will come within the purview of Blue collared workforce.There is no prohibition in asking them to report when they have work. Such Drivers are classified as acting Drivers.You can have a condition to that effect and contract should state so .The daily wages paid should match the minimum wage of that particular category notified in the relevant State .ESI &PF deduction can be on actual days worked .This can be done if they agree for the transition from "full time drivers" to "acting drivers".
In your case it looks like that having lost the contract you need time to deploy them to a new Principal Employer.For this you need their agreement or consent.Being Blue collared they will not wait either they will find a new job or litigate.Please be careful.The other option is to give them retrenchment compensation say 15 days salary for every year of service plus one months pay and complete their F &F.
With Regards
Advocates & Notaries & Legal Consultants for Staffing & Recruiting Industry
E-mail : rajanassociates@eth,net,
-9025792684-9025792634
.
From India, Bangalore
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06b-Form VI-B (Notice of Commencement of Contract Work).pdf
LABOUR CONTRACT AGREEMENT.doc