Spotting The Most Efficient Agency for Executive Search Consultants

Competent professionals don’t land up in your organization by chance! It takes some real hard work to have the top performing, committed guys as the “higher-ups” in your company. This certainly is a select area of expertise comprising two major components:• The one which takes majority of time and efforts is – spotting the right candidates and identifying the best one out of them!

• The second, taking things to next level like arranging the first meeting or interview!

Together with the tough work needed, it takes a mix of experience and dexterity and this blend exists only with the most professional HR people.

This is why you got executive search consultants – the experts who are hand in glove with many top level professionals of the corporate sector and are familiar with how to get them for you!

This evidently is a rare kind of proficiency which your internal human resource professionals are less likely to possess. Even if they do, they might not have the resources and links needed. On the other hand, a professional agency long taking care of the senior level staffing needs of corporations, easily turns to be your best ally here.

Another incredible facet, largely favoring your purpose, is that the professional executive search consultants are not restrained to specific industry. So you are most apt to get the right candidate, with adequate experience and adeptness required for the position you want filled. Needless to mention – you can’t go wrong with this and cannot afford to take chances with a wrong person!

Simply put, spotting the most efficient top personnel simplifies with the help of executive search consultants.

Professional Temporary Staffing Agencies Get You The Most Promising Temps

Whenever you have an optimistic project in hand, one of the biggest challenges in front of you is – deadline! You may be having best professionals to plan the project timelines and experienced project managers for its execution, but in the execution phase, you want the most committed and result oriented temps. Though casual in nature, you cannot expect any of your casual resources to be less skilled or low performing. This precise need can be very well addressed by such an agency which can quickly take care of your temporary staffing requirement.

In addition to the above, you would like to count on few other prime advantages of entrusting this task to one of the best and highly professional temporary staffing agencies. Your demand for the number of casual people obviously depends upon the size of the project, however when it is large, you need many temps. This is when you feel that your staffing requirement should be taken care by a professional agency.

It is evident that companies can save the significant amount of money on salaries of manpower because these recruits are temporary. Understandably, demand for such manpower is also high and to fulfill that, many temporary staffing agencies are operational today. Your second challenge is to find the agency that is dependable and can well take care of your temporary staffing need. Now when it is about selecting the agency, you can base your decision on the agency’s industry presence and size of its network. Such an agency can even fulfill your last minute temporary staff requirement and it can take care of it in no time!

The Nitty-Gritty of Recruitment Process Outsourcing!

When you decide to outsource a function of your company, you know you got to be extremely sensible. It should not be wrong to say that outsourcing a function is like handing over an organ of your body to be managed by someone else. Every department or function of a business is like different parts of our body and therefore, each has its significance. In the wake of this reality, it takes extra effort when you are planning for recruitment process outsourcing. Human Resource is undoubtedly the most prevalent function in any business. In fact, this is the entry point for all lower and higher level employees.

Not only this! Human Resource handles lot other significant operations pertaining to your company’s most important assets – your employees. But recruitment certainly holds the highest value and so outsourcing the recruitment process to an external agency is a prime decision.

A Real challenge in doing so begins at the selection level. You cannot and will not want to rely upon a scantily experienced or second-grade agency for recruitment process outsourcing. You got to realize that to handover recruitment or the staffing process entirely, your outsourcing partner should be nothing below the best. Therefore, this selection may be a bit time consuming and the efforts may be somewhat painstaking. It is however a one-time process and once done, you only have benefits to reap.

One of the crispest benefits that come your way when you have appointed a professional and dependable agency for recruitment process outsourcing – is expertise! In addition to this, you also get a committed team of professionals allready to assist you at every step. In a nutshell, just keep in mind the nitty-gritty of outsourcing recruitment process to a professional agency and you will always catch hold of the best one.

Professional Executive Recruitment Agencies Enhance Your Organization’s Worth!

It is quite evident today that an organization is known by its people. In fact, the kind of people you have in your organization, especially on the top levels who manage a business and other prime operations, is pivotal to your company’s reputation point of view. You might be having hundreds of employees and tens of teams but the organization’s true value gets crafted through its ‘leaders’. This is why ‘executive hunt’ is a kind of specialization organizations yearn for and depute the most professional executive recruitment agencies for this.

Manpower sourcing or staffing is already a large industry today. They possess various streams of expertise and businesses choose them on the basis of their expertise levels. In this respect, there is a special mention of executive search or executive hunt. This facet stays aloof because it enables corporate houses to businesses to companies to employ their top level officials. In other words, the executive hunt is a process of finding and debuting the leaders, decision makers, motivators or influencers in organizations. Regardless of the size of a company, appointing top-level executives is a prerequisite.

In light of the above, you got concise advantages to reap when you select one of the highly professional and listed executive recruitment agencies. On one hand, you benefit from the agency’s vast database of candidates who can potentially fit the job profile you want; on the other hand, you use their expertise in getting such top-level officials competitively. Precisely, choosing one reliable and experienced executive recruitment firm for can remarkably benefit your company in boosting its reputation and brand value.

Why You Need a PF and ESIC Consultant?

Managing your employees’ emoluments is one important prerequisite for any company. While it is true that most companies are better off in fixing a monthly wage for its temporary employees, this does not sound an easy affair either. If you got a business, you will always have some people on permanent rolls and so, the liability to manage their mandatory deductions and the documentation thereby rests with you. In this scenario, it goes a long way and is largely advantageous for you if you appoint a PF and ESIC consultant.

Employee Provident Fund and ESIC – both are part of government directives in view of employment. Deducting percentage of amount from the employees’ salary on account of PF and ESIC is not only the company’s responsibility but employees’ as well. Right from the day you appoint an employee, these two facets come into force and you cannot go about ignoring them at any cost. However, if you got a small HR team or your existing human resource is already loaded, you can go by the smarter option – of appointing an experienced PF and ESIC consultant.

When you do this, you not only offload your HR officials but also get an experienced hand at your disposal. An experienced and professional consultant is abreast with all latest regulations regarding PF and ESIC. So, without having to keep track of every latest development in this regard and checking the accuracy of deductions being made towards PF or ESIC or both, you can just rest assure.

Most staffing companies provide their expertise in PF and ESIC management and so you can ideally enquire about this consultancy with them – if you need it specifically!

Should You Hire The Services of HR Outsourcing Companies?

Whether to hire the services of HR outsourcing companies or not can be a tough decision. After all, handing over a portion of this important function to some external agency is never easy and you got to mull over this thought many times, before actually doing so. In this scenario, you will need to have a patient look at all the possibilities in light of your company’s short and long term objectives. Ideally, a sensible consideration here will certainly facilitate your decision and help you take the right call.

To suffice your decision, here is a noteworthy revelation Do you know that as high as 85% businesses in world outsource minimum one or a few of their HR functions to HR outsourcing companies? Well, now if you are wondering why do they do so, read on!

  • The first advantage to companies who outsource their HR functions, marginally or fully, is in terms of affordability. When you do this, your reach to candidates is larger and that means you have more negotiating power than usual.
  • Your company’s increased competitiveness makes you more capable in retaining the existing talents. As a result, your employees see you as more employable than others.
  • HR professionals working in smaller businesses can often find it difficult to keep track of altering regulatory norms thus making compliance difficult. But when you outsource HR to a professional company, this is not a hassle anymore because the agency professionals are very much familiar with the latest legal compliances.

You may count on various other factors all but indicating that hiring one of the professional HR outsourcing companies is beneficial for you.

Ask Staffing Companies in India for Recruiting Solutions

Recruitment is that inherent aspect for businesses with which they cannot take chances. If you are an organization and have a business, you will always want the best and most reliable professionals to work in your company. Regardless of what cap size your company is or how many employees work for you, you will always expect highly qualified, committed and fired up men and women to hold the key positions in your organization. From this standpoint, hope that your internal HR team will fulfill the organizational requirement will not be wise.

The HR guys cannot be completely occupied in hunting for people and appointing industry’s best personnel. You need external help – and that help is available in the form of staffing companies in India. Few concise benefits of this contracting with such companies are worth a mention:

  • When you want to select the most competent professionals for your organization, you cannot depend upon your limited resources and small list of contacts. At this crucial junction, a staffing company can be remarkably helpful to you.
  • Standard of your prospective managers and officers, in terms of experience, skills, qualifications, etc, is important too. Now given that staffing companies in India have a bigger database of candidates, their chances of scrutinizing the best ones is more than anybody else. Again, this is a valuable plus point for you in facilitating your objective.
  • When this significant is getting done by an external agency, your in-house HR team is considerably offloaded. This means you can be involved the officials for more quality work and focus their efforts in selecting the best of the best professionals to work in your organization.

In short, staffing companies in India can bring tangible advantages to you. All you need to do is select one best agency for you.

Why You Should Rely Only on The Best Executive Search Firms?

You have countless reasons to be glad when you choose one of the best executive search firms for your business. Being a serious entrepreneur, you know what it means to have high performing, result oriented and industry’s most talented people on top in your organization. In fact, your top-level management must be crowded with such individuals and for that, you need to take extra care when appointing them. However, the inherent reality remains – how to find such personnel and where to go to get the cream of the industry!

Recruitment firms specialized in hunting and placing executives for the upper management levels, such as CEOs, Directors, Presidents or Vice Presidents, Chairman, etc, have the most appropriate answer to your question. These are firms are experienced in executive search – which is their specific area of expertise. The experience and adeptness of these firms are pivotal for your business because they adequately know your requirements. In addition, they are also well aware of the profile for which you are looking for candidates and most importantly, the staffing experts in these firms know which candidates can best fit the requisite profile.

You must be wondering, how to identify the best firms among those numerous executive search agencies that proclaim to be the best of all! This is not difficult. Just concentrate on the experience or longevity of the firm; then go with the one which has a noteworthy track record. Secondly, do some beforehand search to know what others say about your prospective firm.
Third highly important facet here is that you should read testimonials from real clients; this will additionally help you in zeroing down on a particular agency which calls itself one of the best executive search firms.

Liability of Principal Employer is restricted to only wages to workers of contract under Contract Labour ( Regulation & Abolition) Act & Rules.

Chand Chhap Fertilizer vs Labour Commissioner, Fertilizer on 18 January, 2006 – Allahabad High Court.

The principal employer, M/s. Chand Chhap Fertilizer and Chemicals limited, in order to undertake certain jobs in the industry, had engaged contractor, M/s. Saran Engineering Works, who was a duly licensed contractor under the provisions uder Section 7 of the Contract Labour (Regulation & Abolition) Act, 1970 thereinafter referred to as the Act, 1970).

Two Workman moved an application under Rule 25(2}(v)(a) of the Rules, 1975 to the authority claiming that they we’re not being given wages as that of the other workmen employed by the principal employer and the wages should be paid to them same and similar to the other workmen of the principal employer.

Rule 25(2)(v)(a) of the Rules, 1975 as hereunder: In cases where the workmen employed by the contractor perform the same and similar kind of work as the workmen directly employed by the principal employer of the establishment, the wages rates, holidays, hours of work and other conditions of service of the workmen of the contractor shall be the same as applicable to the workmen directly employed by the principal employer of the establishment on the same or similar kind of work;

Provided that in the case of any disagreement with regard to the type of work the same shall be decided by the Labour Commissioner, U.P., whose decision shall be final.

However, the obligation cast upon the principal employer is under the provisions of Section 21 of the Act 1970, which is limited to the wages as agreed between the contractor and the workmen. Section 21 of the Act, 1970 is quoted hereunder.

Section 21. Responsibility for payment of wages-

(1) A contractor shall be responsible for payment of wages to each worker employed by him as contract labour and such wages shall be paid before the expiry of such period as may be prescribed.

(2) Every principal employer “shall nominate a representative duly authorized by him to be present at the rime of disbursement of wages by the contractor and it shall be the duty of such representative to certify the amounts paid as wages in such manner as may be prescribed.

(3) It shall be the duty of the contractor to ensure the disbursement of wages in the presence of the authorized representative of the principal employer.

(4) In case the contractor fails to make payment of wages within the prescribed period or makes short payment, then the principal employer shall be liable to make payment of wages in full or the unpaid balance due as the case may be, to the contract labour employed by the contractor and recover the amount so paid from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor.

The provisions of Rule 25(2)(v)(a) of the Rules, 1975 do not impose any liability or obligations on the principal employer but it simply is a term of licence and it is the licence holder that is the contractor who is put to terms in the said rules. If there is any violation of the said Rules, no liability of the same can be fixed on the principal employer.

Also in – Hindustan Steel Works Construction Ltd. v. The Commissioner of Labour and Ors. reported in 1996(74) FLR 2151 – The right of workers to recover any additional wages which may be so determined would be against the contractor and would not fix or impose any liability on the principal employer.

Thus the provisions of Section 25(2)(v)(a) of the Rules, 1975 only deal with the term of the license granted to the contractor who is put to terms in the said Rules find no liability for any violation of the said Rules can be imposed on the principal employer.

So, the scope of Rule 25(2)(v)(a) of the Rules, 1975 is confined to the terms of the licence of the contractor and violation thereof of any of the terms would result in consequence against the contractor alone.

Simplify Manpower Management with a Labour Law Consultant

Recruiting new people can be a relatively simple task for organizations, but managing employees and tracking their record can be a daunting one. Right from maintaining the attendance record to disbursing salary and from ensuring the mandatory tax deductions to paying the entitled perks, this becomes to be a herculean activity. However, your task gets even fiercer when you have the liability to stick to the labour laws and you are not much familiar with them.

Whether you do it yourself or get it done by a dedicated manager, you just cannot ignore the likelihood of messing up with some rules. Given to note that the Labour Ministry amends some rules from time to time, you better stay abreast of every single labour rule or hand this task over to some agency.

Good news for you is that there are various agencies which deliver specialized services in this regard. This significant area is covered under the services of manpower agencies – most of the times. When you entrust this task to a professional labour law consultant, you can rest assured because the agency has the complete hold on every single rule and regulation pertaining to employment. Labour law experts associated with the agency keep a close track of every aspect of recruitment regulations of government and hence, never let you face an undesirable situation on this account.

You may appoint a labour law consultant also for obtaining his advice in the human resource and employment matters. The expert’s advice not only facilitates you in understanding every rule but also makes your company more compliant with every law governing labour appointment of your organization.

This experienced labour law consultant is a handy resource for your organization and is a smart choice from your business point of view!

Significant Role of Permanent Recruitment Consultant

permanent recruitment consultantPeople are the real strength of an organization. In spite of the fact that technical sophistication and automation have become remarkably paramount in business today, the prevalence of experienced and committed people has not diminished. Established companies know this inherent reality and that is why they lay special stress on the commitment factor. Such factor is less likely to be seen in temporary employees and that’s the reason serious businesses are more of interested in hiring a permanent recruitment consultant than those dedicated to temporary staffing.

A noteworthy attribute about agencies specialized in permanent recruitments is that they have a large network of personnel – with people coming from various streams. Finance or Production, Sales or Administration; you name it and they will come up with numerous candidates who can best fit the position you want to fill. A professional permanent recruitment consultant has specialized people for candidate management, which is an essential element in building trust and promoting the positive aspects of working with your company.

Candidates with special skills and outstanding expertise are more inclined towards such manpower agencies which are particularly renowned in permanent recruitments. This means whenever you are in need of manpower and seek incredibly skilled and adequately qualified professionals, you are most likely to find them with these consultants.

Though the areas of operation of a permanent recruitment consultant can be diverse yet the agency’s knack for maintaining a talent pool of best prospective candidates and for selecting permanent personnel is exclusive and significant in this respect. Owing to these advantages, it is more than ideal that you tie-up with a consultant which has a talent pool of professionals with required skills for your organizations.

What Top Executive Search Firms Do?

Many business owners across the globe confuse recruitment or manpower placement with executive search. They weigh all aspects of staffing on the same measurement scale and with same parameters. This understanding turns out to be fatal especially when they want to select personnel for their top management. Although there is no reason to doubt the ability of a regular staffing agency in bringing lower and middle-level employees aboard, the agency may not be good enough at hunting for top-level management professionals and further, in hiring them.

Top Executive Search Firms

You must be wondering – how the top executive search firms are different from others? Before that, you should know how executive search is different from other types of manpower search or recruitment. Executive search means the pursuit for top-level managers like Presidents, CMDs, Chief Executive Officers, etc. Obviously, there aren’t many posts vacant to fill these positions and so, not anyone can match the criteria for these positions.

Above facet unfolds the reality that professional and top executive search firms have a much serious role to play and for that, they need to have an in-depth understanding of the profile of position vacant. People working on top-level management in different organizations are in contact with these firms and so these firms are the right interface for executive search.

Their collaboration with higher management executives and industry giants becomes beneficial for you. Therefore, when you tie up with firms dedicated to searching top executives, you are likely to get the most talented, experienced and professional persons to occupy high-level seats.

In addition, you also save precious time and energy of your inner office which would be otherwise wasted.

Evident Benefits of Hiring Professional Executive Search Consultants

When you want to hire professionals for the top level management in your organization, you just cannot go about with the same recruitment agency which does regular staffing for you. Executive Search is a really specialized job and therefore, the decision to hire a specific professional Executive Search Consultant is a pivotal one for any organization.
It needs no mention that leaders are the people who shape organizations. They are a real boost for the morale of your taskforces and can truly be the driving force to synergize resources in your company. Understandably, this crucial responsibility must be entrusted to an agency which has a stout standing in the business world and has prior experience in recruiting the higher-ups – be it CEO, President, Chairman, Director or some other of similar ranks.

So how does professional and adept Executive Search Consultants make a difference and facilitate your objective? Here are some pointers worth a mention:

  • As a sensible organization, you will obviously want the hunt for top-level management remain under the covers. This is a considerably sensitive matter for both – your organization as well as the candidates. Experienced executive search agencies know how to maintain confidentiality while hunting for the right executive, without risking anyone’s identity.
  • Top-level executives lay special stress on the environment and culture of their prospective company, even if it is true that they are open to new opportunities. Professional executive hunt consultants make sure that your organization’s culture is appositely promoted, even more than the magnificence of pay package!
  • An executive search agency acts as a bridge that connects potential CEOs or Directors with organizations. This is called Candidate Management and professional executive search consultants are adroit in this too.

Again, candidate management is more effective when done by a third party instead of you, so make sure you have the right kind of agencies impaneled with you for this task.

Concise Benefits of Hiring Temporary Staffing Agencies

Temporary Staffing AgenciesYou can get a plethora of advantages by hiring a professional temporary staffing agency. But while rejoicing in this very fact, there are few concise benefits which assuredly complement with your decision. This article tells you about the two best and most fertile benefits of hiring temporary staffing agencies.

Regardless of what size your organization or enterprise is, when you know that temporary manpower is extremely important for your business, you obviously want to have it. Because the onus to recruit personnel is on your internal HR department, you will have to entrust this additional task to them. However, this may not only divert their core focus areas but also turn out to be a cumbersome activity for them – as this will call for extra attention and time from them!

By hiring the services of a temporary staffing agency, you save your HR team’s precious time and protect them from overburdening. The time, energy and focus thus saved can be utilized for other productive and more significant jobs. Companies and businesses know that this certainly is one prime advantage which is why they seek the services of professional temporary staffing agencies.

Another valuable fact here is the cost advantage! Involving a firm to do the temporary staffing for you also means abridging your organizational overheads. Right from the employment documentation to payrolls and from compensation to benefits – all will be taken care by your agency. This way, you will have industry’s experienced and skilled professionals working for you and you still don’t have to focus on their needs as your employees.



The world of HR never ceases to surprise us. Each time we feel something significant has taken place and we focus and align ourselves, there is something lurking and waiting to pounce on us. The latest among the most discussed issues has been the introduction of the Minimum Wages Code Bill. It has been extremely significant in the changes that it purports to bring about, and also the impact that it will have on employees covered and wage rates introduced. Needless to say, ERP Corporation Pvt. Ltd. will be right where all the action is.

On 26th Day July of 2017, the Union Cabinet approved the new minimum wage code bill. The bill is expected to be introduced in the Parliament during the ongoing monsoon session which will conclude on 11th Day of August 2017. The proposed legislative change is projected to benefit over 4 crore employees across the country by ensuring a minimum wage across all sectors through the integration of four related labor laws. The new minimum wage norms would be applicable for all workers irrespective of their pay. At present, the minimum wages fixed by the Centre and states are applicable to workers getting up to Rs 18,000 pay monthly and does not cover workers getting a monthly wage of more than Rs 18,000.

If the bill is approved by the Parliament, workers getting a monthly pay of higher than Rs. 18,000 would also be legally entitled to a minimum wage. Also, until now the central government was the decision maker for fixing wages in its own sphere and the States were responsible for their areas leading to non-uniformity. The lack of proper methodology to arrive at the wages of unskilled workers added to the woes. This wage code bill could solve all of these to some extent.

Background of Bill

The Wage Bill is a part of the Government of India initiative of reducing myriad labour & employment laws to 4 major codes namely, wages; industrial relations; social security and welfare and occupational safety, health & working conditions. The Wage Bill consists of four chapters ensuring equal remuneration, minimum wages, payment of wages and payment of bonus.

Highlights of the Wage Bill are as follows:

• Minimum wage limit: Currently, State Governments set the minimum wage limit under the Minimum Wages Act, 1948. It appears that the Wage Bill now proposes a universal minimum wage to workers to be set by the Central Government across all States and sectors. States must implement the minimum wage limit set by the Wage Bill but are at liberty to set a higher minimum wage in their respective jurisdictions.

• Applicability: Currently the Payment of Bonus Act, 1985 is applicable only to workers earning wages below INR 21,000 per month. Similarly, the Payment of Wages Act, 1936 applies to workers earning monthly wages of INR 18,000. Further, certain labour laws are restricted in their application to employees only in scheduled industries or specific establishments. The Wage Bill entitles all workers to equal remuneration and a universal minimum wage regardless of their wages and type of industry. It provides for payment of bonus to every employee drawing wages less than the amount notified by the Central Government. Payment of bonus further has exclusions for employees of certain Governmental organizations, educational institutions, institutions established not for purposes of profit and employees of any other establishment notified by the appropriate Government.

• Wages: The Wage Bill provides for a uniform definition of wages as opposed to different definitions of wages or remuneration under the extent labour laws. Wages under the Wage Bill are defined as all remuneration (whether by way of salary, allowances or otherwise) expressed in terms of money or capable of being expressed which would be payable to a person employed in respect of his employment on the fulfillment of terms of employment, whether express or implied. It, however, excludes bonus, the value of any house accommodation, or of the supply of light, water, medical attendance, contribution to pension and provident fund by the employer, traveling allowance and gratuity.

• Payment of wages: The current Payment of Wages Act 1936 requires payment of wages primarily in cash, and through bank only upon a specific request by the employee. Post demonetization, the Payment of Wages Act was amended to state that all wages shall be paid in current coin or currency notes or by cheque or by crediting the wages in the bank account of the employee. The Wage Bill now mandates every employer to make payment of wages electronically (bank transfer) or by cheque unless notified otherwise by the Government.

• Claims under the Wage Bill: The Wage Bill requires the relevant State Government to appoint one or more authorities and an appellate authority to hear and decide the claims arising out of non-payment of wages, deduction in wages made in contravention of the Wage Bill, payment of wages below the minimum wages, non-payment of wages for the leave period, non-payment of overtime, non-payment of equal remuneration to employees.

• Statutory Registers and Returns: The Wage Bill mandates every employer to maintain a single register (preferably electronic) containing the details of persons employed, wages and other details prescribed by appropriate Government. Employers are also required to file Annual Returns under the Wage Bill. This is expected to ease the compliance burden of the employers.

• Facilitators: Currently, the Payment of Wages Act, 1936, and the Payment of Bonus Act 1965 provide for labour “inspectors” to conduct inquiry and investigation to check compliance with the Payment of Wages Act, 1936. The Wage Bill provides for “facilitators” instead of “inspectors”, who in addition to powers of inquiry and investigation, are also empowered to provide the employers and workers with advice regarding effective means of complying with the law.

Some of the benefits this new wage code bill will bring to us are:

• A multiplicity of definitions will be removed through this change.
• There will be ease of compliances which in turn will incentivize setting up of more enterprises.
• The role and designation of the inspector will change from mere inspection to that of the facilitator who would guide and advise the employers as well as the worker class.
• The move will be popular among trade unions and those currently employed.
• Historically, the wage conditions of unskilled workers who are outside the central sphere are dismal. Hence this Bill will be the harbinger of good news to them.

The challenges

After the goods and services tax (GST) implementation, the ability to offer Value Added Tax (VAT) stops by the State Government has already reduced. And with this new change now, the capacity of states to attract investments on the basis of lower wage rates too will take a hit. The latest Economic Survey points to the fact that 78% of Indian firms employ less than 50 workers. Just 10% employs more than 500 workers. The comparable figures for China are 15% and 28% which speaks for itself. Countries like Brazil too had suffered regional income disparities as a result of the implementation of a similar minimum wage law in the past.

Let us look at more challenges which this new wage bill may bring for us:

– This law will affect the competitiveness of trade and industry.
– The Bill may lead to wide regional income disparity due to some low-income states suffering current de-industrialization.
– This new change will ensure that more of the organizations remain in the informal sector where policing wages is difficult.
– The applicability of current act is restricted to scheduled establishments due to which a sizeable number of workers are left out. If Parliament approves the code, the minimum wage will be applicable to all classes of workers. This will certainly make it more difficult for smaller companies to function efficiently.
– The unorganized sector will eventually find ways around to bypass the law if economics tells them that they can’t afford it. The good news is that the Indian Government is in full swing to bring in reforms with the aim of creating a more effective, rationalized, transparent and user-friendly Labour law system in the country. But with this higher, uniform minimum wages across the country in the offering, there seems to be a possibility of low-income states suffering de-industrialization, leading to wide regional income disparity. On one hand, due to such changes technology and mechanization will move a step ahead leading to higher productivity.
However, if not tackled correctly may lead to a fall in employment level across all industries. Post getting approval for above bill, any person engaged in any work at any place whether its metro or Rural or village, the employer would be liable to pay the minimum wages of Rs.18000 plus statutory dues. For example, if you are engaging a peon in your factory/office at a remote place or any metro cities, you are liable to pay CTC of Rs.2,84,338. (Calculations are done for Maharashtra State and it may vary from state to state). Accordingly, even employers would be forced to revise the CTC of their on-roll employees who are drawing CTC less than Rs.2.85 lacs per annum.
The Wage Bill expands the scope of application of existing labour laws concerning wages to all establishments without any monetary limit (except in case of bonus), ensuring adequate coverage and protection of workers in relation to their wages. It seeks to reduce statutory compliance’s for employers by requiring the filing of a single register and return. Largely, it seeks to consolidate and rationalize existing laws on wages in India by providing further clarity on thresholds, record maintenance, mode of wage payment and so on.

Rahul Kumar
Manager – Statutory Compliance
ERP Corporation Pvt. Ltd.

Contract Labour doesn’t have any constitutional right to claim for making his or her employment permanent on the ground of providing any specific service for any particular tenure

We have always come across with the query on absorption or regularization or permanence of Contract Labour/ Casual Worker or temporary worker can be construed so as to convey an idea of the nature of tenure of appointments.

There is no such provision available which had ever briefed about absorption or regularization & permanence of Contract Labour or Casual Worker or temporary worker can be construed so as to convey an idea of the nature of tenure of appointments. The Constitution of India had not defined any specific tenure for any Contract Labour or Casual Worker or temporary worker to maintain as permanent.

In this regard we are supported by the realms of verdict by Honorable Supreme Court & High Court of India which says that absorption due to regularization can’t give permanence to any Contract Labour or Casual Worker or temporary worker whose services are ad hoc in nature.

The verdict made by the honorable Supreme Court in Secretary, State of Karnataka & others Vs. Umadevi & Others it’s lucid that such Contract Labour or Casual Worker or temporary worker can’t be treated at par with regular employees.

We shall also refer to the other decisions made in State of Punjab v. Surinder Kumar (AIR 1992 SC 1593) a three-Judge Bench of this Court held that the High Courts had no power, like the power available to the Supreme Court under Article 142 of the Constitution, and merely because the Supreme Court granted certain reliefs in exercise of its power under Article 142 of the Constitution, similar orders could not be issued by the High Courts. The Bench pointed out that a decision is available as a precedent only if it decides a question of law.

The temporary employees would not be entitled to rely in a writ petition they filed before the High Court upon an order of the Supreme Court which directs a temporary employee to be regularized in his service without assigning reasons and ask the High Court to pass an order of a similar nature.

There have been decisions which have taken the cue from Dharwad case and given directions for regularisation, absorption or making permanent, employees engaged or appointed without following the due process or the rules for appointment. The philosophy behind this approach is seen set out in the recent decision in Workmen v. Bhurkunda Colliery of Central Coalfields Ltd. (1983 (4) SCC 582) though the legality or validity of such an approach has not been independently examined. But on a survey of authorities, the predominant view is seen to be that such appointments did not confer any right on the appointees and that the Court cannot direct their absorption or regularisation or re- engagement or making them permanent.

We trust these realms of verdict will secure our view that no Contract Labour or Casual Worker or temporary worker can claim being absorbed as permanent employee of any State or Industry or establishment mere on the ground of providing any specific service any particular tenure ( even if he had served for a decade).

Thus our view is lucid that tenure of service provided by any Contract Labour or Casual Worker or temporary worker doesn’t give any constitutional right to claim for making his or her employment permanent.

Rahul Kumar
Manager – Statutory Compliance
ERP Corporation Pvt. Ltd.