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Showing posts from May, 2017

Applicability of Contract Labour for outsourced services - if serviced by whole time employees

Well, Many stalwarts managing staffing agencies or the compliance agencies has a misconstrued view on the applicability of the Contract Labour (Regulation & Abolition) Act, 1970.  While this law was enacted with the objective of regulation of the contract labour and abolition in certain spheres to prevent exploitation, the contract labour system was engaged either in the construction or manufacturing industry. Hence the contract labour were working either in a site or premises of the principal employers.  As the retail industry evolved with majestic business models into self servicing outlets, Malls and hypers, the entire contract labour system has under gone a sea change. Typically, the following business models have come into stake: FMCG/Durable Products > Outsourcing the promotions, managing Point of Sales Materials (PoSM) execution at the Point of Sale, viz. Retail Outlets (Shoppers Shop, Big Bazzar, Reliance,,,) to a specialist service, technology and staffing