Dear all,
we are in manufacturing since 18 yrs, presently we have some of the confirmed employees working in our packing as well as manufacturing dept.
now we want to recruit contract employees for packing and manuf dept ( which is based helper job ) and transfer confirmed employees to other manufacturing dpet. in the same company.
is it legally right ? if yes then what is a procedure ?
Thnaks
Raj
From India
24we are in manufacturing since 18 yrs, presently we have some of the confirmed employees working in our packing as well as manufacturing dept.
now we want to recruit contract employees for packing and manuf dept ( which is based helper job ) and transfer confirmed employees to other manufacturing dpet. in the same company.
is it legally right ? if yes then what is a procedure ?
Thnaks
Raj
From India
Dear Raj,
Have you read standing orders of your company? Generally employers make provisions in their standing orders to transfer any employee from one department to another.
Secondly, what about the appointment letters of those confirmed employees? Have you inserted the clause of internal transfer? Internal transfer of employee is discretion of the management and legally tenable.
Legal standpoint apart, make sure that the employee transferred has right skill set to execute new job. You should train that employee also. Try to convince employee that he/she cannot go on doing the same job for the years together and it is no longer economically viable for the company to make him do what he had been doing years together.
Thanks,
DVD
From India, Bangalore
Have you read standing orders of your company? Generally employers make provisions in their standing orders to transfer any employee from one department to another.
Secondly, what about the appointment letters of those confirmed employees? Have you inserted the clause of internal transfer? Internal transfer of employee is discretion of the management and legally tenable.
Legal standpoint apart, make sure that the employee transferred has right skill set to execute new job. You should train that employee also. Try to convince employee that he/she cannot go on doing the same job for the years together and it is no longer economically viable for the company to make him do what he had been doing years together.
Thanks,
DVD
From India, Bangalore
If by means of transfer, there will not be any change in the status of the employee and loss in the earnings/ incomes of the employees, then there will not be any problem. But if you are going to fill in the shortage by recruiting employees through contractor, it may create problems in future. In future, the employees so engaged should not say that they have been engaged in an activity which was being done by permanent employees over a period of years and hence it is perennial in nature. The recent verdict on contract labour say that unless it is proper in all respects, the employees of the contractors can claim absorption into company rolls. Therefore employers who engage contract labour should be very careful.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
Please refer Bhilwara Dugdh Utpatak Sahakari Society Ltd Vs Vinod Kumar Sharma, in which the Apex Court has very categorically said that “in order to avoid their liability under various labour statutes employers are very often resorting to subterfuge by trying to show that their employees are, in fact, the employees of a contractor. It is high time that this subterfuge must come to an end. Labour statutes were meant to protect the employees/workmen because it was realised that the employers and the employees are not on an equal bargaining position.
Hence, protection of employees was required so that they may not be exploited. However, this new technique of subterfuge has been adopted by some employers in recent years in order to deny the rights of the workmen under various labour statutes by showing that the concerned workmen are not their employees but are the employees/workmen of a contractor, or that they are merely daily wage or short term or casual employees when in fact they are doing the work of regular employees”
More over, the Supreme Court has directed the Delhi International Airport Ltd to stop engaging contract labour and also to pay compensation worth Rs 5 Lakhs each to the 136 trolley workers who were not reinstated. The judgement says that privatisation does not mean that government has no control over the establishment.
Regards,
Madhu.T.K
From India, Kannur
Hence, protection of employees was required so that they may not be exploited. However, this new technique of subterfuge has been adopted by some employers in recent years in order to deny the rights of the workmen under various labour statutes by showing that the concerned workmen are not their employees but are the employees/workmen of a contractor, or that they are merely daily wage or short term or casual employees when in fact they are doing the work of regular employees”
More over, the Supreme Court has directed the Delhi International Airport Ltd to stop engaging contract labour and also to pay compensation worth Rs 5 Lakhs each to the 136 trolley workers who were not reinstated. The judgement says that privatisation does not mean that government has no control over the establishment.
Regards,
Madhu.T.K
From India, Kannur
Mr. Madhu,
Thanks for your guidance on this matter.
I have few doubts. In the above case, if they have proposed to change the dept of some permanent employees and if it affects to the nos of employees with their conditions of working, skills and other relevent factors, and if these are unionised employees, is there required to give a notice of change inder ID Act. As it seems that dept change of some permanent employees by any means may call for a dispute and to regularize it, management has to issue a notice of change as per the schedule IV under ID Act.
Your views please,
Regards,
Atul S Malve
From India, Sholapur
Thanks for your guidance on this matter.
I have few doubts. In the above case, if they have proposed to change the dept of some permanent employees and if it affects to the nos of employees with their conditions of working, skills and other relevent factors, and if these are unionised employees, is there required to give a notice of change inder ID Act. As it seems that dept change of some permanent employees by any means may call for a dispute and to regularize it, management has to issue a notice of change as per the schedule IV under ID Act.
Your views please,
Regards,
Atul S Malve
From India, Sholapur
Transfer from one department to another department is always possible provided it is there in the appointment order/ standing orders and provided further that the work to which he is transferred involves the same skill/ technique and there is no loss of earning by the employee. But if there is any change in the service conditions a 21 days notice is required to be given to make effect to that change as per section 9A of the ID Act.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
Transfer from one department to another is defenitely possible. In case your company provides production incentive to the operators, then re training allowance can be provided to the transferred employees, so that the monetary part is taken care off.
As far as contract workers are concerned, you can opt for service break before completing 240 days of continuous working. It is advisable to have batches in rotation so that no legal problems arise.
From India, Bangalore
As far as contract workers are concerned, you can opt for service break before completing 240 days of continuous working. It is advisable to have batches in rotation so that no legal problems arise.
From India, Bangalore
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