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SOP (Contract Labour Management)

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3K views2 pages

SOP (Contract Labour Management)

Uploaded by

hr.cooldeckindustries
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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HR Policy No.

: 21 Key Area: Administrative Policies


Authorized By: Head- HR Sub Key Area: Contract Labour Management

I. PERSPECTIVE:

To streamline the system of hiring contract labour and ensure smooth contract labour
Operations in the organization.

II. POLICY:

2.1 The contract labour to be hired as per the approved Manpower Budget only.

2.2 The Manufacturing Heads and Project Managers at Manufacturing Units and sites
respectively will ensure compliance of applicable labour laws.

2.3 Compliance record proofs of all applicable laws along with monthly bills is a must for
payment release. The Finance Department will not release any payment without
proper supporting documents by Contractors.

III. PRACTICES:

3.1 The contract labour to be engaged as per Contract Labour Act. .

3.2 The contract labour requirement duly approved by Operations Head will be submitted
to HR department, who in turn will hire required labour from the approved
Contractors.

3.3 While issuing work orders to Contractors, it is compulsory to ensure that Contractor
has valid Registration License, PF and ESIC registration number.

3.4 Any running account bill or final bill to be processed and payment to be released only
after certifying compliance of PF / ESIC and after verification of challans of previous
month. No bills will be paid where PF, ESIC deposit challans of last month are not
attached with the bills.

3.5 Appropriate penalties may be deducted in case of non-compliance of applicable laws


and in case of non-adherence to company norms & protocols.

3.6 In work order, the requirements of compliances as per labour law requirement need to
be mentioned clearly as under:

 The Contractor will remain solely responsible for timely and complete payment of
wages with other statutory benefits and other service conditions to its labour
personnel / staff and shall maintain all such records as required confirming to the
labour laws, enactments, rules, regulations and orders that are applicable to the staff
by reason of their executing the contractor’s obligations.

 The Payment of Wages Act,1936


 The Minimum Wages Act,1948
 The Employees Provident fund and Miscellaneous Provident Act,1952
 The Payment of Bonus Act,1965
 The Contract Labour( R & A)Act,1970
 Employees State Insurance Act,1948
 The Payment of Gratuity Act,1972
 The Equal Remuneration Act,1976
 The Inter-State Migrant Workman ( Regulation of Employment and
Conditions of Service) Act,1979
 Workman Compensation Act,1923
 The Building and Other Construction Workers Welfare cess Act,1996
 And all other Applicable Labour Laws which are in force and may come
in to force in future.

 The Contractor Shall ensure that it has a valid Contract Labour License, Provident
Fund, ESIC and Professional Tax Registration and also enrolled all its personnel /
employees under provident Fund, ESIC and Professional Tax. The Contractor shall
ensure to keep valid all such License / Registration at all the times and comply all
requirements under the Provisions of various applicable Labour Laws.

 The Contractor will deposit the provident Fund, ESIC and Professional Tax in respect
of its personnel / employees account within stipulated time, as per the applicable laws.
The Contractor further will produce the original payment challans of Provident Fund,
ESIC and Professional Tax each month before Company for verification and the
payment of bill will be cleared by company on production of the said challans.

 The Contractor will remain solely responsible for any of the non-compliance or less
Compliance or breach of applicable Labour Laws and indemnify the company.

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