A STUDY ON CONTRACT LABOUR AT IFFCO KANDLA SIP Project report submitted in partial fulfillment of the requirements for the

PGDM Programme BY NIKITA CHAWLA 2012186 Supervisors: 1. Mr. A.R Ambwani 2. Prof. M.M Fadnavis Institute of Management Technology, Nagpur 2012-2014

PREFACE Management student has to apply his theoretical knowledge in the practical field and compare the results with the classroom learning. Industrial training for a management student is the first stage towards the industrial exposure which tell s him what difficulties or challenges he may face when he will enter in the corp orate world. As per syllabus prescribed by the INSTITUTE OF MANAGEMENT AND TECNO LOGY, it is compulsory for every student to undergo 6 to 8 weeks of industrial t raining at some renowned organization. I have taken my industrial training at IF FCO Kandla - Unit. This project majorly covers the P&A Department of IFFCO- Kand la Unit and also contains the analysis of the data collected on employee engagem ent.

ACKNOWLEDGEMENT Summer internship has long been an indispensable part of our curriculum of PGDM programme. Between the first and second year, this is an ideal way to get exposu re to the real business world and learn about an industry. I have done my summer internship project at IFFCO- Kandla , for 6 weeks from 1st May to 11th June, 20 13. My sincerest thanks and respect to Mr. A.R Ambwani ( Dy. General Manager) fo r the immense help and guidance. I am indeed very thankful to them for their une nding support right from the inspection of this project. They continuously share d their precious time and provided me right guidance at every stage. I am gratef ul to Prof. M.M Fadnavis, Professor at Institute of Management Technology, Nagpu r for helping me to solve the queries and difficulties related to my internship project. His support and encouragement has a lot to do with the completion of th is Project . I am indebted to all employees of P& A department of IFFCO- Kandla, who directly or indirectly helped me in making my project a success. I greatly acknowledge the contribution of all. Nikita Chawla

TABLE OF CONTENTS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Introduction of the Industry Human resource section at IFFCO Objective of Study on Contract labour R esearch Methodology Introduction of contract labour Contract labour at IFFCO Kan dla Engagement process of Contract labour List of forms Details of documentation under Contract Labour Act,1970 Obligations of principal Employer Obligation of the Contractors Welfare and health of Contract labours Administration of Contrac t labours Precautions taken while engaging Contract labour Limitation Recommenda tions Bibliography/References 2 8 17 17 18 21 25 26 27 32 33 35 36 37 37 37 38

Executive Summary To ensure continuing progress to develop & transfer the best technologies & to k eep pace with the largest development in the world of agriculture INDIAN FARMERS FERTILIZERS COOPERATIVE LIMITED (IFFCO) was established on 3rd November 1967 as a multi-unit cooperatives organization. In nearly three decades of successful exi stence, the society has blossomed into a premier organization in the capital int ensive fertilizer industry in India. IFFCO is one of the pioneer organizations w ith cooperative sector with Broad Objective of augmenting fertilizer production, ensuring fertilizer availability at the farmers door step, strengthening cooper ative fertilizer distribution system & educating, training & guiding the farmers for improving the agricultural productivity. IFFCO has emerged as the largest producer & marketer of fertilizer in the countr y with five operating units located at kandla & kalol in Gujarat, Phulpur & Aonl a in Bareilly in U.P & Paradeep in Orissa. IFFCO is a leading producer of fertilizer in the country. IFFCO has built its st ructure based on four broad objectives dividend initially by its founders. These are: 1) 2) 3) 4) Production of quality chemical fertilizer Urea, NPK Complex & DAP. Service to the farming community. Making fertilizer available closely to co mmunity & Strengthening cooperatives in order to enable them withstand competiti on. 1|Page

INTRODUCTION OF IFFCO Pride of Cooperatives Indian Farmers Fertilizers Cooperative Limited, popularly known as IFFCO, emerged as the pioneering venture on the horizon of fertilizer p roduction and marketing with the objective of attaining self- sufficiency in foo d grain production. Born as multi unit cooperative society on 3rd November 1967, with a membership of 57 cooperative societies, IFFCO witnessed a meteoric rise and blossomed into the largest manufacturer and marketer of fertilizers in the c ountry. With an authorized capital of Rs.1000 crore, its membership extends to a round 36.000 cooperative societies through which its products are channeled in 2 9 states and 2 union territories in the country. This multi-state cooperative so ciety commissioned its first two plants at KANDLA and Kalol in Gujarat in 1975 f or production of Urea and NPK/DAP, respectively. It expanded its production faci lities in 1981 by commissioning two additional streams of phosphatic fertilizers at Kandla and a new urea plant at Phulpur. Another gas based plant was commissi oned in 1988 at Aonla, Uttar Pradesh. IFFCO realized its dreams of acquiring an impregnable status of global fertilizers major by expanding its production facil ities at Kandla, Kalol, Aonla and Phulpur in quick succession. During the period 1996 to 1999, expanding doubled the installed capacity of all the three ammonia / urea plants at Aonla, Kalol and Phulpur. The capacity was raised from 16.2 lak h tons to 32.2 lakh tons. The Kandla unit was also expanded and the new plant wa s commissioned on 5th August 1999. The annual capacity of NPK/DAP was increased from 9 lakh tons to 16 lakh tons of bulk fertilizers or 3.09 lakh tons to 5.61 l akh tons of P2O5 OUTPUT. During the year 2001-02 IFFCO has 55.51 lakh MT of fert ilizers comprising of 34.91 lakh MT of urea and 20.60 lakh MT of NPK/DAP and hig hest ever sales of 5605 lakh MT which comprises of 35.85 MT urea and 20.65 lakh MT NPK/DAP. COMPANY PROFILE FERTILIZER INDUSTRY IN INDIA: The fertilizer industry in India consists of three major players: The Government owned Public Sector Undertakings, Co-operative Societies like IFFCO, KRIBHCO and units from Private Sectors. There are about 33 major producers producing NPK fertiliz ers in the country at present. The fertilizer industry of India had made constru ctive use of the fertilizer provided by the Government of India, to ensure that the country achieved 2|Page

reasonable self-sufficiency in food grains production. The fertilizer industry h as organized itself through Fertilizer Association of India (FCI) to co-ordinate with the Government of India to achieve the macro-economic objectives related t o agricultural sectors and to provide other services. Co - operation refers to an organization of individuals for achieving a common e conomic objective by mutual help and collective efforts. The word Co - operation as been derived from the Latin word Co-operate which, means to work together, to labor together, to endeavor for some common purpose. HISTORY OF IFFCO:During mid-sixties the co-operative sector in India was respons ible for distribution of 70 % of fertilizers consumed in the country. This secto r had adequate infrastructure to distribute fertilizers but had no production fa cilities of its own and hence dependent on public/ private sectors for supplies. To over come this lacuna and to bridge the demand supply gap in the country, a new cooperative society was conceived to specifically cater to the requirements of farmers. It was a unique venture in which the farmers of the country through their own co-operative societies created this new institution to safeguard their interests. The number of co-operative societies associated with IFFCO has risen from 57 in 1967 to 38,155 at present. 3|Page h

Farmer`s dream to have their unique organization that can produce and make them av ailable quality fertilizer at their doorstep was successfully realized with the formation of IFFCO, a pioneer in Indian Cooperative movement on 3rd November, 19 67. Beginning with a modest membership of 57 cooperative societies in 1967-68, I FFCO has blossomed into Globe`s largest fertilizer cooperative with sizable member ship Of 37,500 cooperative societies in its fold. Thus IFFCO has become a cooperative of the farmers, by the farmers and for the f armers. Initially, IFFCO set up its plants at Kalol and Kandla in Gujarat which were commissioned in 1975. Subsequently, it commissioned plant at Phulpur and Ao nla in U.P. in the year 1981 and 1988 respectively. IFFCO has acquired a NPK/DAP and Phosphoric Acid facility at Paradeep in Orissa. The marketing of IFFCO`s prod uct NPK/DAP/ Urea is channelised through cooperative societies and institutional agencies in over all states and union territories of the country. IFFCO has notched up a record sale of 81.95 lakh tonne of fertilizer material co mprising 50.13 lakh tonne of urea and 31.82 lakh tonne of NPK/DAP, during the ye ar witnessing a growth of 27 % as against 64.64 lakh tonne, the year before. Bes t ever marketing productivity also sprang to 5566 tonne/head. 3 November 1967: Indian Farmers Fertilizer Cooperative Limited (IFFCO) was set u p at the initiative of the farmers. It soon emerged as a role model for cooperat ives. IFFCO is registered under the Multi-State Cooperative Societies Act 1984, which was amended in 2002. Beginning with a membership of 57 societies, it has g rown to around 40,000 as on 31 March 2008. The initial equity capital of Rs 6 la kh has jumped to Rs 423.93 crore. Indian Farmers Fertilizers Cooperative Limited , popularly known as IFFCO, emerged as pioneering venture on the horizon of fert ilizer production and marketing with objective of attaining self-sufficiency in food grain production. Several prestigious awards stand 4|Page

testimony to the fact that IFFCO is driven by its values and the dedication of i ts people. This is an organization that believes in fair play and has always fol lowed transparent and professional practices in corporate governance. Over 40 ye ars ago, the Government and the farming community came together with a single ob jective: to empower lives. Thus was born IFFCO, the world`s largest Fertilizer coo perative. IFFCO`s mission is to enable Indian farmers to prosper through the timel y supply of reliable, high quality fertilizers and farm inputs and services in a n environmentally sustainable manner and to undertake activities to improve thei r welfare. This is the success story of an organization that has the vision to g row; it is a story that has been scripted with the best intentions to benefit the farmer and to spread smiles across the nation. Indian Farmers Fertilizer Cooper ative Limited (IFFCO) is a multi-state cooperative society engaged in production and distribution of chemical fertilizers. Registered on 3.11.1967, the Society commissioned its first two plants at Kalol and Kandla in Gujarat in 1975 for pro duction of Urea and NPK/DAP, respectively. It expanded its production facilities in 1981 by commissioning two additional streams of phosphatic fertilizers at Ka ndla and a new urea plant at Phulpur. Another gas-based plant was commissioned i n 1988 at Aonla, Uttar Pradesh. In the year 2005, IFFCO took over the Phosphoric Acid, Sulphuric Acid and NPK/DAP plant of M/s Oswals Ltd, Paradeep. IFFCO`s produ ction is approximately twelve thousand crore turnover in a year. New project whi ch are going in IFFCO are:-1)Urea phosphate 2) Zinc sulphate Streams A&B C&D E&F Year of commissioning 1975 1981 1999 5|Page

Impetus to Cooperative Movement Right from the beginning IFFCO has been sparing on efforts to inform & educate the farmers through its dedicated field team at t he grassroots level. Its need based education and promotional programmes like cr op demonstrations, field days, farmers meetings; seed multiplication, village ad option; crop seminars and lay two plot and block demonstrations for the benefit of farmers. The society has also pressed into service 165 Farmers Service Center s spread over length and breadth of the country for providing technical guidance and making available all vital agro inputs under one roof especially for small and marginal farmers. Special projects on different aspect of Hi-tech agricultur e such as drip irrigation, bio-pesticides, bio-fertilizers, use of plastics in a griculture, agriculture implements; watershed management development, microirrig ation etc. have also been launched. IFFCO'S Kandla Plant IFFCO`s Kandla plant is loc ated on the western bank of Kandla creek adjacent to Kandla Port Trust oil Jetti es. The plant (Kandla plant) produces NPK/DAP complex phosphate fertilizers of v arious grades, namely NPK grades 10:26:26, 12:32:16 & DAP 18:46:00 in terms of N :P2O5:K2O. The plant, originally consisting of only 2 streams A&B and related fa cilities was designed & erected by M/s Dorr Oliver Inc. USA at a cost of Rs. 30 cores with an annual licensed capacity of 1,27,000 MT P2O5. The plant was commis sioned on 26th Nov. 1974 and commercial production declared on 1st Jan, 1975. Wi th increased demand for complex fertilizers, the capacity was doubled by additio n of two more streams C & D designed & erected by HDO at a cost of Rs. 28.80 cro res. Licensed capacity was increased from 1.27.000 MT P2O5 per annum to 2, 60,00 0 MT P2O5 per annum. The expanded unit was commissioned on 4th June 1981 and the commercial production was started from 6th Sept. 1981. Subsequently due to intr oduction of production of DAP grade, the total capacity increase to 3.09,000 MT per annum of P2O5. IFFCO went in for expansion of their unit at Kandla in 1996-9 7. Kandla phase-II NPK/DAP project conceptualized the setting up of two addition al E & F streams for manufacture of the same grades of NPK/DAP fertilizers with an annual production capacity of 2,10,700 MTPA thus increasing the total capacit y from 3,09,000 MTPA of 6|Page

P2O5 to 5,19,700 MTPA of P2O5. The actual cost of the project was Rs. 205.30 cro res against a budgeted cost of Rs. 212.20 crores. The main consultant for the NP K/DAP plant was M/s Hindustan Dorr Oliver, Mumbai with the pipe reactor technolo gy obtained from process licensor M/s Grande paroisse, France. The construction of E&F streams was completed 77 days ahead of schedule. The E & F streams were c ommissioned on 10th June 1999 & 9th July 1999 respectively and the commercial pr oduction started from 5th August, 1999. Raw material are :- 1) Potash 2) Urea 3) Ammonia 4) Phosphoric acid 5) Sulpuric acid Vision To augment the incremental incomes of farmers by helping them to increase their crop productivity through balanced use of energy efficient fertilizers, m aintain the environmental health and to make cooperative societies economically & democratically strong for professionalized services to the farming community t o ensure an empowered rural India. Mission To provide to farmers high quality fertilizers in right time and in adeq uate quantities with an objective to increase crop productivity. To make plants energy efficient and continually review various schemes to conserve energy. Comm itment to health, safety, environment and forestry development to enrich the qua lity of community life. Commitment to social responsibilities for a strong socia l fabric. To institutionalize core values and create a culture of team building, empowerment and innovation which would help in incremental growth of employees and enable achievement of strategic objectives. Foster a culture of trust, openn ess and mutual concern to make working a stimulating and challenging experience for stake holders.

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Building a value driven organization with an improved and responsive customer fo cus. A true commitment to transparency, accountability and integrity in principl e and practice. To acquire, assimilate and adopt reliable, efficient and cost ef fective technologies. Sourcing raw materials for production of phosphates fertil izers at economical cost by entering into Joint Ventures outside India. To ensur e growth in core and non-core sectors. A true Cooperative Society committed for fostering cooperative movement in the country. HUMAN RESOURCE DEPARTMENT The Most Important assets of the organization are its employees so the managemen t of the human resource is the prime function of management. In this function, t he basic responsibility of management is to bring employee and organization on t he same platform in order to meet the individual goal as well as the organizatio n goal at the same time. Human productive capacity depends upon his ability to a cquire knowledge and put it to economic use. The management of human resource ph ilosophies is the basis on which polices and practices guiding an organizational behavior can be developed and implemented. These are: Accumulation: - means tra nslate into polices and practices designed attract many good candidate very care fully and consistently. Utilization: - individual are generally selected with at tention to technical skill, although personal characteristic are still important . Facilitation: - for treating and managing employee in organization is called f acilitation. This hold that individual must have technical skill to able to work together enclose reciprocal interaction. 8|Page

Personal Aspect: - are man power planning, recruitment, placement, promotion, tr ansfer, Training and development, remuneration, productivity, incentives and sup erannuation benefits. etc.. Welfare Aspect: - are working conditions, recreation s facilities, medical care, transport, canteen, health and safety etc. Industria l Relation Aspect: - covers, union management relation, collective bargaining, w orker participation in management, grievance, disciplinary procedures and settle ment of dispute etc. Human Resources Sections at IFFCO ADMINISTRATION SECTION Mainly organizations deal with basically three main thing s man, machine and tools. P&A (Personnel and Administration) Department is deali ng with men, their services and towards their devotion to work, legal or statuto ry obligations as per rules of the organization for all that system`s requirement, which is required and dealt with personnel and Administration Department. It ha s to physically act as an activator in the matter by providing certain amenities like health, cleanliness, transport, communication uniform of the employees etc . Monitoring is required to make an organization effective and efficient by maki ng the full P&A department work efficiently and effectively. How full P&A depart ment is working efficiently is a key relation with, how the employees, vendors, government act as a service department. It is the fulfilling service oriented de partment for the efficiency and effectiveness of the organization. If not dealt properly gives negative or reverse results. Timely ordering of the different fun ction of the man is the key Administration functioning autonomy if it is called the functioning body of the organization The major sections of Personnel & Admin istration Department are: Administration Personnel/ Public Relations/ Time Offic e Industrial Relations/ Contract Labour Estate/ Guest House 9|Page

PERSONNEL SECTION Human beings are resources to an organization. Like any other material on economic resources they represent an investment whose development an d utilization require managing (i.e. planning, organization, leadership and eval uation). There is a fundamental truth in the clich that People are an organization`s most important asset. In every organization, human resources are apivotal variab le without which the inanimate assets are worthless. Like cash put into a saving s account, human resources can appreciate in value. Therefore, human resources n eed to be understood to their proper perspective and utilized effectively to ach ieve the goals of an organization. This requires that human resources must be ma naged and management implies that work should be effectively completed with and through other people. The management process is made up of four steps embracing the people dimension getting them, preparing them, activating them and keeping them . It is these aspects of human resources, which this volume deals with. The manag ement of human resources is a very complicated and challenging task for these wh o are entrusted with the successful running of an organization; and this implies considerable knowledge of various aspects of Personnel Management , including that of industrial law, psychology, sociology, administration, etc. The discipline o f personnel management has gained importance since professionalism of management is now regarded as a must` for the successful running of a business or industrial enterprise. Executive have the moral obligation to the organization they manage and the human resources` they employ, which they can fulfill only when they have a background of theoretical and conceptual knowledge of the subject. This presuppo ses that they should not only have a thorough grounding in the various aspects o f handling human resources` through proper education and training but should also k eep themselves abreast of the changes and trends that take place in their discip line. INDUSTRIAL RELATION SECTION Industrial Relations are concerned with the re lationship between management and workers and the role of regulatory mechanism i n revolving any industrial dispute. Industrial Relations refers to a dynamic & d eveloping concept which is not limited to the complex of relations between trade unions and management but also refers to the general web of relations normally obtained between employer and employees. Industrial Relations are an integral as pect of social relations arising out of employeremployee interaction in modern i ndustries, the concept of Industrial Relations has been extended to denote the r elations of the state with employees and workers and their organization. Thus th e concept of IR is given due importance in all organization. 10 | P a g e

Industrial Relations in context to IFFCO. In IFFCO Industrial Relations is done by undergoing to following functions Monthly meeting of Joint Management Council , Notice of meeting to be issued/compliance to be taken from concerned section/ minutes of meeting to be prepared and issued / quarterly return to RLC, A`bad on w orkers participation. Maintaining Liaison with labor and other department of sta te and Central Government Renewal license of Factory, electrical license and lic ense for LPG Providing Legal Assistance in Legal matters by attending various co urt cases Courts cases are pending before various courts viz. High courts, Indus trial Tribunal, Labor court and civil court and Conciliation authorities. Prepar ing written statements, plaints, rejoinders, etc. in consultation with Advocates and to attend cases in the various courts Dealing with various Disciplinary mat ters Arranging meeting of IR / Union Management meetings Bipartite / tripartite settlements Memorandum of settlements with Union from time to time Ensuring comp liance of statutory requirement by contractors and IFFCO by periodical inspectio n of records pertaining to several acts Submission of statutory and non statutor y returns to Government and H.O

GUEST HOUSE & ESTATE:This section also comes under the purview of the P & A depa rtment. This section looks after the guest`s resting, their facilities, their lodg ing and boarding, their transportation to the plant and various place related to the plant and their meeting arrangement for the above mentioned meeting with th e GM and the other officials from the Head Office. Also Estate is related with t he Housing and boarding of the employees of the IFFCO cooperative and this deals with the improvement with the facilities given to the employees according to th eir grades in their grades in their Designation and thus even though not a big s ection and does not directly related in the productivity of the plant but indire ctly have an effect on the employees performance and their productivity. Hence i t has to be seen that the employees are getting the optimum from their plant and their surrounding and thus they can produce the company`s production a more effic ient manner. Here also there is a duty allotted to the different officials on a routine basis so that their guidance can be obtained and the attainders at the G uest House and Estate can obtain their valuable ideas. 11 | P a g e

Time Office:Time office is one of the most important section where attendance of all employees and executives in duty are effectively monitored. It maintains re gularly the punching cards, leave records and various other functions through it s totally computerized system. There are five shifts in IFFCO Morning shift: 6:0 0 am to 2:00 pm Second shift: Night shift: General : 2:00 pm to 10:00 pm 10:00 p m to 6:00 am 8:30 am to 5:00 pm Attendance is one of the most important records of the employee`s capacity to work regularly. The main work of the time office is to record the exact timing of th e entry and exit. This recording of time is done through the punching machine. W hen the employee punches his card the timing is recorded in the computer, which records the employee`s Attendance on that particular day. Then print out of the no . of employees present during each shift is taken and recorded in the daily atte ndance sheet which is filled daily by the time office and sent to the personnel department for the verification of the no. of the employees present in the entir e plant. The other function of the time office is to record the attendance of em ployees as well as keep a record of the overtime taken by the punching staff. If the employee is present for more than 3 days the time office notifies the respe ctive department that the particular employee has been absent and whether they h ave received any intimation from the employee of his absence. Since malpractices can be done that is the employee punches his card and leaves the premises befor e time and then returns back to punch his exit time, or it can be that some othe r person punches for the entry of that particular employee, the time office send s in the attendance sheet to the various departments where the head of that part icular departments verifies whether the employee is present or not or whether th e head of that particular departments verifies whether the employee is present o r not or whether there was a false punching favoring that particular employee. 12 | P a g e

Another record that is maintained by the Time Office is the daily report which i s send to the Sr. Manager which contains the particular in each shift such as th e punching clocks, record of any notice board either through the management or t hrough the union, any occurrence of accidents or any other special occurrence wh ich has taken place in the unit which is signed by the Time Keeper endorsed by t he supervision and the welfare offices. Other than this the duty of the time kee per is to write down the statement showing the daily engagement of casual worker s in a particular department on that particular day and the total no. of them em ployed in the general shift so that they are accounted for the daily wages. The timekeeper also fills in the form of the statement showing the total strength of the unit and the percentage of absenteeism of the punching staff below H2 grade . The attendance of the officer grade above H1 grade is maintained in the regist ers of this respective department. These registers are brought down to the time office and are checked by the supervisors as to how many officers are present on that particular date in order to calculate the percentage of absentees in the w hole unit. The time office also keeps even reports of apprentices present. Every month the salary of previous month is paid within the first week of the month. All the reports maintained of employees of their attendance, or time, absenteeis m etc are send to the F&A dept. where in the wages and salaries are then calcula ted accordingly. If the employ is working on shift basis then he cannot leave the premises until his reliever has joint the duty. If his reliever happens to be on leave he has t o continue working in the complete shift on overtime wages. In such case he gets overtime of the whole shift of 8 hours, but if he works overtime when there is a plant shutdown, he will be given overtime for the hours he has worked, not for the entire shift. If the employee works on the national holiday he is given dou ble overtime, while on other holiday he is given only single overtime. Labour Welfare and Social Security 13 | P a g e

INTRODUCTION:- Labour welfare works aims at providing such service facilities an d amenities which enables the workers employed in an organization to perform the ir work in healthy congenial surrounding conductive to good health and high mora l. Labour welfare is a comprehensive term including various services, benefits and facilities offered by the employer. Through such generous fringe benefits the em ployer makes life worth living for employees. The welfare amenities are extended in additional to normal wages and other economic rewards available to employees as per the legal provisions. Welfare Facility provided to the employee in IFFCO-kandla. IFFCO has done a lot for its employees. Beings a cooperative it always believes in sharing its benefits with the employee. Any person would be satisfied of he g ets good pay and good facility to live has/her life. If the employee is socially secured then the employee would put in his full potential to carry out his duti es and he will feel indebted to the organization and gives in his best. There ar e two type of welfare facilities provided to the employees in IFFCO. Statutory facilities. Non-statutory facilities. Welfare services may broadly e classified into two category: Intramural activiti es:- which are provided within the establishment such as toilets, rest center, c anteen, uniform etc. Excremental activities:- which are undertaken outside the e stablishment such as family planning, child welfare, co-operative stores credit societies, vocational guidelines, holiday, home leave, travel facilities. Intramural activities: t shelters 14 | P a g e Drinking water Toilets Washing and bathing facilities Res

Uniform and protective clothing Recreation facilities. Canteen.

Extramural activates: Housing Education facilities Maternity benefits Transpor ion Sport facilities Vocational training Holiday home Social insurance. The welf are board at corporate level consisting of equal representative of the workmen a nd management, has been planning, supervising, monitoring and evaluating various measure.

Labour welfare work may also be divided into categories. Statutory welfare facil ities: IFFCO provides all statutory welfare measures to its employees as per the factory act 1948: Washing Facilities: Facilities for storing and dra ng Facilities for sitting. Changing rooms. Drinking Water Latrines and urinals. Lightings. Ventilation Medical Faculties Reimbursement of expenses of medical ch eck-up. First-aid appliances and ambulance room. Canteen. 15 | P a g e

Noon statutory labour welfare facilities: Township. Schools Educational fa s Ladies club Liveries Staff buses Sport and cultural activities Bonus Welfare f und. Leave provisions. FIRE AND SAFETY:-

Maintaining and Monitoring safety at work in the plant. Monitoring and control o f all the facilities where ever hazards is involved as per fire rules for handli ng of hazardous chemicals. Regular servicing/monitoring of all fire and safety e quipments in and around plant. Conducting and coordinating annual safety audit. Mock drill practice for emergency preparedness. Regular updation of On-site and Offsite emergency plan. Conducting various competition activities to increase aw areness programs. Conducting various competition activities to increase awarenes s of safety. 16 | P a g e

A STUDY ON CONTRACT LABOURS An Act to regulate the employment of contract labour in certain establishments a nd to provide for its abolition in certain circumstances and for matters connect ed therewith. OBJECTIVE OF THE STUDY The Objective of the Contract Labour Regulation and Abolition Act, 1970 is to pr event exploitation of contract labour and also to introduce better conditions of work. A workman is deemed to be employed as Contract Labour when he is hired in connection with the work of an establishment by or through a Contractor. Contra ct workmen are indirect employees. Contract Labour differs from Direct Labour in terms of employment relationship with the establishment and method of wage paym ent. Contract Labour, by and large is not borne on pay roll nor is paid directly . The Contract Workmen are hired, supervised and remunerated by the Contractor, who in turn, is remunerated by the Establishment hiring the services of the Cont ractor. RESEARCH METHODOLOGY The source of collection of data of the project is as follows: PRIMARY DATA: The study complies of the primary data as there was a face to face interaction with the contractors of IFFCO. The interview conducted was unstructured one which is one of the types of interviews and it comes under the Qualitative Interviews. S ECONDARY DATA: The collection of secondary data was through the websites of the company, the books and some forms which contains the rules & regulations of the company. For 17 | P a g e

the study of the project the data collection as also done through the books of C ontract Labour (Regulation & Abolition) Act, 1970. SAMPLING PLAN: The data was a lmost collected through the Industrial Relations department of Personnel section . AREA OF STUDY: The area of the study was plant of IFFCO at Kandla INTRODUCTION TO CONTRACT LABOUR In this age of globalization, the employment structure across the globe has been undergoing changes in all nations. In order to effectively compete in a globali zed market, one needs flexibility relating to labour, capital, or bureaucracy; t his allows a producer to adapt to the fast changing world and compete effectivel y. In particular, it is argued that stringent labour regulations not only put do mestic producers at a disadvantage but also determine foreign direct investment and eventually impact adversely on investment, output and employment. Over the l ast two decades, a number of countries have attempted to liberalize their respec tive labour markets and have also amended their labour laws so as to make them m ore investment - and employment -friendly a process that has weakened job securi ty and collective bargaining. In Bangladesh, for example, globalization is found to reduce the number of employees working under permanent contracts and to crea te non traditional employment structures including part time , casual and contra ct labour In India too we observe an increasing use of casual /contractor other such non informal labour over time. Among different kinds of employment that hav e been created in various economies to circumvent labour laws, contract labour i s becoming one of the prominent forms. If we assume that such a flexible form of employment is indeed necessary in a competitive world, then how do we extend so cial protection to this section of labour? It has been observed in Bangladesh th at with such informalization of labour, social security of workers, in general, have decreased and workers are often terminated without benefits. In India, cont ract labourers are protected by the Contract Labour Regulation and Abolition Act , 1970. A contract labour is defined in the Act 3 as one who is hired in connect ion with the work of an establishment by a principal employer who is the firm ow ner or a manager 18 | P a g e

through a contractor. The act makes a number of provisions for the welfare of th e contract workers including payment of minimum wage , social security benefits and others. At various points of time Government amended the law with a view to make it more labour friendly. However, such amendments can be of help to the wor kers only if implementation of the law is ascertained. Definitions. Appropriate G overnment means In relation to an establishment in respect of which the appropriat e government under the Industrial Disputes Act, 1947 (14 of 1947), is the Centra l Government: In relation to any other establishment, the government of the Stat e in which that the other establishment is situated: A workman shall be deemed t o be employed as Contract Labour in or in connection with the work of an establish ment when he is hired in connection with such work by or through a contractor wi th or without the knowledge of the principal employer. Contractor , in relation to an establishment means a person who undertakes to produce a given result for th e establishment, other than mere supply of goods or articles of manufacture to s uch establishment, through contract labour or who supplies contract labour for a ny work of the establishment and includes a subcontractor: establishment means (i) any office or department of the government or a local authority, or (ii) any pl ace where any industry, trade, business, manufacture or occupation is carried on . Principal employer` means(i) in relation to any office or department of the Gover nment or a local authority, the head of that office or department or such other officer as the Government or the local authority, as the case may be, may specif ied in this behalf. (ii) in a factory, the owner or occupier of the factory and where a person has been named as the manager of the factory under the Factories Act, 1948, the person o named, (iii) in a mine the owner or the agent of the min e and where a person has been named as the manager of the mine, the person so na med,

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(iv) in any other establishment, any person responsible for the supervision and control of the establishment. Workman` means- any person employed in or in connecti on with the work of any establishment to do any skilled, semi- skilled or unskil led manual, supervisory, technical or clerical work for hired or reward, whether the terms of employment be express or implied, but does not include any such pe rson(i) who is employed mainly in a managerial or administrative capacity: or wh o, being employed in a supervisory capacity draws wages exceeding five hundred r upees per mensem or exercises, either by the nature of the duties attached to th e office or by reason of the powers vested in him, functions mainly of manageria l nature. (ii)

Who is outworker, that is to say, a person to whom any articles or materials is given out by or on behalf of the principal employer to be made up, cleaned, wash ed, altered, ornamented, finished, repaired, adapted or otherwise processed for sale for the purposes of the trade or business of the principal employer and the process is to be carried out either in the home of outworker or in some other p remises, not being premises under the control and management of the principal em ployer. The ADVISORY BOARDS AS PER THE CONTRACT LABOUR ACT, 1970 CENTRAL ADVISORY BOARDS: The central government shall, as soon as may be, consti tute a Boardto be calledthe Central Advisory Contract Labour Board to advise the Central Government on such matters arising out of the administration of this Ac t as may be referred to it and to carry out other functions assigned to it under this Act. (1) The Central Board shall consist of (a) (b) (c) A chairman to be a ppointed by the Central Government The Chief Labour Commissioner (Central) Such number of members, not exceeding seventeenbut not less than eleven, as the Centr al Government may nominate to represent that Government, the Railways, the coal industry, the mining industry, the contractors, the workmen and any other intere sts which, in the opinion of the Central Government, ought to be represented on the central board. 20 | P a g e

(2) The number of persons to be appointed as members of each of the categories s pecified in sub section(2), the term of office and other conditions of service o f, the procedure to be followed in the discharge of their functions by, and the manner of filling vacancies among, the members of the Central Board shall be suc h as may be prescribed: Provided thatthenumber of members nominated to represent the workmen shall not be less than the number of members nominated to represent the principal employers and the contractors. STATE ADVISORY BOARD: (1) The State Government may constitute a Board to be call ed the State Advisory Contract Labour Board to advise the state government on such matters arising out of the administration of this Act as may be referred to it and to carry out other functions assigned to it under this Act . (2) The State Board shall consist of (a) a chairman to be appointed by the Sta te Government (b) thelabour commissioner or in his absence any other officer Sta te Government in that behalf nominated by the (c) such number of members, not exceeding eleven but not less than nine, as the state government may nominate to represent that Government, the industry, the co ntractors, the workmen and any other interests which, in the opinion of State Go vernment, ought to be represented on the State Board. (3) The number of persons to be appointed as members of each of the categories specified in sub- section ( 2), the term of office and other conditions of service of, the procedure to be f ollowed in the discharge of their functions by, and the manner of filling vacanc ies among, the members of the State Board shall be such as may be prescribed: Pr ovided that the number of members nominated to represent the workmen shall not b e less than the number of members nominated to represent the principal employers and the contractors. 21 | P a g e

Contract Labour Work At IFFCO Kandla The contractor at IFFCO kandla are fully re sponsible for all matters arising out of the performance of the contract and com ply at his own expenses with all the laws enactment/ orders/ regulations/ statut ory obligations, whatsoever, of the government of India/State govt/ any statutor y or non statutory authority .The contractor hereby agrees to indemnify and keep harmless the owner / consultant against all liabilities in this respect. The co ntractor in IFFCO are fully and exclusively responsible for the work, conduct, s upervision and control of all their own personnel and personnel employed by the sub contractor engaged by them and owner / consultant shall in no way be respons ible for supervision, control etc. of these personnel. Since the contractor have full and exclusive supervision and control over the contract awarded to him and the people engaged for this purpose, the contractor or his sub contractor, as t he case may be, shall be the principal employer under the Contract Labour (Regul ation & Abolition) Act. 1970 and the contractor of IFFCO must register himself a s such, and the owner/ consultant have no responsibility and liability on this Advantages and Dis-Advantages: Advantages of Using Temporary Labour

When we use temporary labour we should be getting an employee that has already b een screened and interviewed by the temp agency. If we work closely with the sam e agency they should be able to get a feel for what type of employees we are loo king for. This also saves our time having to go through the normal hiring proces s. 22 | P a g e

If we are not satisfied with the employee. Well the solution to that is simple. Ask the Contractor to send out someone else. We are not required to use anyone h e sends to us.

There are a couple of other advantages to using a temporary labour. One is the a bility to let go the employee when we no longer need them. All we have to do is make a call or give a letter and the Contractor will handle the employee.

The other advantage is the ease with which payroll is handled. That`s because the contractor handles the employee`s payroll. He deals with all the taxes as well as the benefits the employee might be receiving. All we have to do is pay the bill.

Economic and financial feasibility - the contract Labour are able to do a better job in terms of supervision since they have a fear of loss of job as compared t o regular workers.

As such the principal employer has no liability towards the contract labours but his liability is limited to the act of payment of bill raised by the contractor .

Under sec. 16 (1) (c) of contract labour Act if the contract labour appointed by the contractor is more than 100 then it is the duty of contractor to provide Ca nteen for the Labours.

As the contract Labours are appointed by contractor there will be no chance for Labour Unions. Dis-Advantages of Using Temporary Labour As per Sec. 10 of Contract Labour Act. We can not appoint them on machine work b ut only loading and un-loading work can be given to them. However, being the pri ncipal employer, we have to ensure that the contract employees are getting their salary from the contractor in time. It is the responsibility of the principal e mployer to ensure that EPF/ESI in respect of these workers are remitted by the c ontractor in time. We have also to ensure that bonus is given to those who are e ligible for. Besides, we have to obtain permission from the appropriate authorit ies for hiring employees through a contractor. (We can recover the sum paid ) Al so if the contractor dose not complies with the statutory provisions under sec. 21 regarding payment of wages the Principal employer have to pay the same. 23 | P a g e

The downside of hiring temporary employees? The main problem actually comes from what happens when we find an employee we`d like to keep. Most temp agencies requi re their workers to sign a contract. Most are either three or six months in dura tion. The contract keeps the worker from jumping ship if they are offered a job. This gives the company that is using the employee usually only two choices. One is to buy out the contract. This can often cost the company thousands of rupees . Its how the agency is able to still make its money on the worker. The other o ption is to keep the worker on until the employee`s contract runs out. Either way our business will pay a price. It`s up to us to decide whether the employee is wor th the price.

As the employees are appointed by contractor we have no chance to judge their wo rking ability before appointing them. 24 | P a g e

THE ENGAGEMENT PROCESS OF CONTRACT LABOUR AT IFFCO KANDLA A Material Purchase Requisite (MPR) is raised by the indenter. i. e the departme nt who is in need of labours will raise their request through an MPR and further it is send to the Material Department. The Material department will check the M PR regarding the information and details given in the MPR by the indenter. There is a vendor list category given in the MPR on which the inquiry is issued by th e material department for its approval. The approved vendors will then send thei r quotations to the material department. The material department will then make Quotation Comparison Statement (QCS) of the vendors and then it will be send to the indented department for their recommendations. The indented department , wil l then recommend for the placement of order to the lowest offer (L1) basis or pr oprietary offer basis. On that basis the material department will prepare order for the particular vendor. There is either work order or purchase order prepared as per the recommendations of the indentor with the standard terms or condition s for work order or purchase order. If the purchase order is placed and the part y which execute the order with the stipulated delivery period than it is seemed that the order is executed or it is closed. In the work order the party works at the site of the indentor or at their own place. The work order is closed after the completion of duration period mentioned in the work order. The duration of t he work order can be for six months or twelve months or it can be extended if ne eded. REGISTERATION OF THE ESTABLISHMENT If the principal employer is employing 20 or more workers than it is necessary f or him to get registered through FORM No.1which is the form of Application for r egistration of employing Contract labour. The principal employer has to make the registration within a stipulated period of time to the registering officer (Ass t. comm. Of Labour ). If the application for the registration is complete in all respects, the registering officer shall register the establishment and issue to the principal employer of the establishment a certificate of registration conta ining such particulars as may be prescribed. 25 | P a g e

List of Forms to be filled up for various purposes related to Contract Labor Sr. No 1 2 3 4 5 6 7 8 Description Application for registration of employing con tract labor Certificate of registration Register of establishments Application f or License Form of Certificate (By principal Employer) Government of Gujarat (Is sue of License) Application for renewal of license Application for temporary reg istration of establishment employing contract labor Temporary certificate of reg istration Application for temporary license Govt of GJ Office of Licensing offic er (Temporary License) Register of particulars of Contractors Register of Workme n employed by Contractor Employment card Service Certificate Muster roll Registe r of Wages Form of register of wages cum Muster roll Wage slip Register of deduc tion for Damage loss Form No. i. ii. iii. iv. v. vi. vii. viii. Rule No 17(1) 18 (1) 18(2) 21(1) 21(21) 25 29(2) 32(2) 9 10 11 ix. x. xi. 32(3) 32(2) 32(3) 12 13 14 15 16 17 18 19 20 26 | P a g e xii. xiii. xiv. xv. xvi. xvii. xviii. xix. xx. 74 75 76 77 78(2)(a) 78(2)(a) 78(2)(a) 78(2)(b) 78(2)(d)

21 22 23 24 Register of tines Register of Advances Register of Overtime Return to be sent by the Contractor to Licensing Officer half year ending Annual return of principal employer to the registering officer (Annexure to form) xxi. xxii. xxiii. xxiv. 78(2)(d) 78(2)(d) 78(2)(e) 82(i) 25 xxv. 82(2) DOCUMENTS & FORMALITIES REQUIRED TO BE MAINTAINED BY THE CONTRACTORS EMPLOYING T EN OR MORE WORKERS UNDER CONTRACT LABOUR (REGULATION & ABOLITION) ACT,1970 LICENSING OF CONTRACTORS A licence is to be obtained for engaging 10 (ten) or mo re labours by a Contractor by depositing fee for licence and Security Deposit. T he application of Licence must accompany Form V to be obtained from IFFCO. This l icence is to be renewed. An application for renewal of the license should be mad e atleast 30 days before the date on which the license expires. Application shou ld be made in Form no. IV. The contractor shall abide by all the conditions laid down in the license. Subject to the provision of the act, a license under sub-s ection (1) may contain such conditions including, in particular, conditions as t o hours of work, fixation of wages and other essential amenities in respect of c ontract labour as the appropriate government may deem fit to impose in accordanc e with the rules, if any, made under Section 35 and shall be issued on payment o f such fees and on the deposit of such sum, if any, as security for the due perf ormance of the conditions as may be prescribed. A licence is to be obtained for engaging 10 (ten) or more labours by a Contractor by depositing fee for licence and Security Deposit. The application of Licence must accompany Form V to be obta ined from IFFCO. This licence is to be renewed. An application for renewal of th e license should be made atleast 30 days before the date on which the license ex pires. 27 | P a g e

Application should be made in Form no. IV. The contractor shall abide by all the conditions laid down in the license Validity & Renewal Every licence granted or renewed shall remain in force till 31st December of that year only. Change in t he particulars specified in the Licence is to be intimated to Licensing Officer with the particulars & the reasons thereof. On good & sufficient reasons, Licenc e may be amended by Licensing Officer. Contractor has to apply to Licensing Offi cer for renewal of licence on or before 31st October. Revocation, suspension & a mendment of license If the licensing officer is satisfied, either on a reference made to him in this behalf or otherwise, that(a) a license granted under sectio n 12 has been obtained by misrepresentation or suppression of any material fact, or (b) the holder of license has, without reasonable cause, failed to comply wi th the conditions subject to which the license has been granted or has contraven ed any of the provisions of this Act or the rules made thereunder, then without prejudice to any other penalty to which the holder of the license an opportunity of showing cause, revoke or suspend the license or forfeit the sum, if any, or any proportion thereof deposited as security for the due performance of the cond itions subject to which the license has been granted. Subject to any rules that may be made in this behalf, the licensing officer may vary or amend a license gr anted under section 12. Security Deposit The Contractor has to deposit the Secur ity amount as prescribed by the State Govt. RESPONSIBILITY FOR PAYMENT OF WAGES (The Minimum Wages Act, 1948) .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. Every principal empl oyer shall nominate a representative duly authorized by him to be present at the time of disbursement of wages by the contractor and it shall be the duty of suc h representative to certify the amounts paid as wages in such manner as may be p rescribed. It shall be the duty of the contractor to ensure the disbursement of wages in the presence of the aurhorised representative of principal employer. 28 | P a g e

In case the contractor fails to make payment of wages within the prescribed peri od or makes short payment, then the principal employer shall be liable to make p ayment of wages in full or the unpaid balance due as the case may be, to the con tract 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 a ny contract or as a debt payable by the contractor. Payment of Minimum Rate of W ages: The Act says that, where in respect of any scheduled employment minimum wag es have been fixed, the employer shall pay to every employee wages at a rate not less than the minimum rate of wages fixed for that class of employees in the em ployment. Such wages shall be paid without any deductions except as may be autho rized. Where the contract wage rate is higher, the statutory obligation does not come into play. At IFFCO the wages are paid to the labours as per the Minimum Wa ges Act, 1948. The contractor must pay wage rate as fixed and/or revised as per the Minimum Wages Act`1948 in the presence of the Authorised representative of the section/department. He also has to make the payment of overtime for extra work at double the rate of normal wages. The payment of the wages is done in cash. Th e contractor must maintain a wage register which is to be duly attested by the A uthorized representative of the section/department. The revised minimum wages fo r the period from 01/04/2010 to 30/10/2010 are as follows. Category Rate unskilled 151.9 132.5 Semi-skilled 156 133.8 Skilled 160.9 136.4 Clerk 164.2 164.4 Fixing Hours for a Normal Working Day: Where minimum wages have been fixed, the appropriate Government may--- (a) Fix the number of hours of work which constitu tes a normal working day, inclusive of one or more specified intervals; Provide for a day of rest in every period of seven days and for payment of remuneration in respect of such day of rest; Provide for payment for work on a day of rest at a rate not less than the overtime rate. (b) (c) Rates of Overtime: where a labour, whose minimum rate of wages is fixed under th is Act, by the hour, by the day or by such longer wage- period as may be prescri bed, works 29 | P a g e

overtime, the employer shall pay him for every hour or for part of an hour so wo rked in excess, wages at the rate fixed for overtime work under the Act or under any law of appropriate Government in force, whichever is higher. Wage Period: a wage period to be fixed in respect of which wages shall be payable. This period shall not exceed one month, wages to be paid directly to the worker or other pe rson authorisde by him in this regard. Disbursement of Wages: It shall be the du ty of the contractor to ensure the disbursement of wages in the presence of the authorized representative of the principal employer. In case the contractor fail s to make payment of wages within the prescribed period or make short payments t han the principal employer shall be liable to make payment of wages in full or t he 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 deducti on from any amount payable to the contractor under any contract or as a debt pay able by the contractor. Notice Showing Wage period: A notice should be displayed at the place of work in English and Gujarati and one copy should be sent to Guj arat Licensing Officer showing the following: (a) Rate of Wages (b) date of paym ent of wages (c) Hours of work (d) wage period (e) name & address of inspecting officer (f) date of payment of unpaid wages (g) place and time of disbursement o f wages. REGISTER OF PERSONS EMPLOYED: A register in Form XIII is to be maintain ed in respect of persons employed by the contractor. As per Rule 75, Form No.13 is to be filled. EMPLOYMENT CARD: An employment card is to be issued to all the employees in Form No. XIV as per Rule No 76 ,within three days of the employment . SERVICE CERTIFICATE: A service certificate in Form XV is to be issued on Termin ation of any employee and payment should be made within the second day. REGISTER S TO BE MAINTAINED: Register of Contractors: every principal employer shall main tain in respect of each registered establishment a register of contractors in Fo rm XII In respect of establishments which are governed by the payment of wages A ct, 1936 and the rules made thereunder, the following registers and records requ ired to be maintained by a contractor as employer under those Acts and the rules made thereunder shall be deemed to be registers and records to be maintained by the contractor under these rukes, namely:30 | P a g e

1. Muster Roll 2. Register of Wages3. Register of Deductions4. Register of Overt ime5. Register of Fines6. Register of AdvancesForm No.XVI Form No..XVIII Form No. XX Form No. XXIII Form No. XXI Form No XXII Every principal employer shall, within in fifteen days of the commencement or co mpletion of each contract work under each contractor, submit a return to the Ins pector, appointed under Section 28 of the Act, intimating the actual dates of th e commencement or as the case may be, completion of such contract work, in Form vi-B Every Principal Employer of a registered establishment shall send annually a return in Form XXV so as to reach the Registering Officer concerned not later than the 15th February following the end of the year to which it relates. INSURA NCE: Risk and uncertainty are incidental to life. A labour may meet an untimely death. He may suffer from accident; destruction of property, fire, sea perils, e tc. there is risk as well as insecurity. It is to provide against risk and insec urity that insurance came into being. Insurance does not avert or eliminate loss arising from uncertain events, it only spread the loss over a larger number of people who insure themselves against that risk. Every contractor is liable to ha ve insurance of all the labors under him. He has to submit the copy of insurance challan to IFFCO Kandla. At the time of any accidental death of labour the cont ractor is liable under the above said act to pay compensation to the family memb ers/nominee. IFFCO is liable as principal employer under the above said act to k eep a watch that all the compensation is paid to the contract labour. PROVIDENT FUND: It is obligatory on the part of the contractor to arrange for deductions t owards PF from the date of joining of an employee. In view of this, contractor w ill arrange for payment of contribution of PF of the employees engaged by him fr om the wages of his employees and matching contribution and matching contributio n of the contractor from the date of joining of employee. 31 | P a g e

The contractor shall extend PF benefits to all employees who have completed cont inuous service of three months as provided under the provident Fund Scheme, 1952 . The contractor shall get his concern/ establishment covered under the Employee s Provident Fund directly with appropriate Regional Provident Fund Commissioner, . WORK ORDER COPY: A copy of work order is given to the contractor after sanctio ning the party for the concerned work on the basis of the lowest bid rate. The W ork order specifies the terms and conditions of the work order and also mentions the validity period of the contract. SEAL: in all the registers, forms, documen ts, identity cards, Leave cards, Employment Cards, and other records maintained by the contractors under Contract Labour (Regulation & Abolition) Act and other labour laws there must be the seal of IFFCO as well as of the contractor concern ed. OBLIGATIONS OF THE PRINCIPAL EMPLOYER The principal employer must have to get th e establishment registered under section 7 The principal employer should not emp loy contract labour without obtaining the registration certificates and to cease employing contract labour if registration is granted under the act. Under secti on 8 The principal employer shall not employee labour unless the contractor has taken the license. The principal employer should provide the amenities to the co ntract labour in the event of the failure of the contractor to do .under section 20 The principal employer should nominate a representative duly authorized by h im to be present at the time of disbursement of wages by the contractor. For the representative so nominated certify the amounts paid to the contract labour as wages. The principal employer should also ensure payment of minimum wages by the contractor. The principal employer has to make the payment of wages or to make the payment of unpaid balance due to the workman in the event of the failure of the contractor to do so. 32 | P a g e

The principal employer has to submit annually a return in Form XXV so as to reac h the registering officer concerned not later than 15th February following the e nd of the year to which it relates to. The principal employer should not deal di rectly with contract labour, any correspondence, etc. OBLIGATIONS OF THE CONTRACTORS The contractor undertakes to comply with all the relevant provisions of the various rules and acts framed thereunder relating to the employment of contractlabour by the contractor, such as: a. The Contract Lab our (Regulation & Abolition) Act, 1970 and the Central rules framed thereunder. b. The Factories Act, 1948 c. The workmen`s Compensation Act 1932 d. The Employees Provident Fund Act and misc Provision Act, 1952 e. The minimum wages Act, 1947 f. The inter state Migrant Workmen(Regulation of Employment & Conditions of Serv ices) Act. 1979 g. The Employer State Insurance Act, 1948 h. The Provision of In dustrial Disputes Act 1947 i. The payment of Bonus Act 1965 j. Any other present , future Acts/Rules may be enacted/framed/made applicable by the central governm ent and is applicable to the contract labour from time to time. Any Civil / Crim inal liability arising out of non compliance of the provision of any Act or Rule s as applicable to the contract labour on account of the failure of the failure of the contractor will be at the sole risk, responsibility and the cost of the c ontractor. 33 | P a g e

Should the management of IFFCO suffer any civil/criminal damages/ liability or a ny other kind of financial liability or cost, the same will be duly compensated/ reimbursed/ borne by the contractor. The contractor shall give his telephone nu mber and address to IFFCO of the place where he can be contacted in case of labo ur troubles , any other requirements etc. IFFCO will be entitled to deduct any s um payable by him and which sun/sums IFFCO is required to pay as Principal Emplo yer on account of contractors default or otherwise, directly from the bills paya ble to the contractors in terms of this contract. The contractor shall notify th e date and time for payment of wages to the authorized representative of Managem ent of IFFCO. He should make payment not less than the Minimum Wages as modified by the Government The contractor shall make the required registers, records and also submit required returns under the relevant status applicable to him under intimation to IFFCO from time to time. No person who is not adult will be employ ed as contract labourviz not less than 18 years of age. The contractor shall com municate abour the commencement and completion of the contract to the management of IFFCO. The labourers permitted inside the factory shall be engaged in the sp ecific work under the contract and should not be employed on other jobs inside t he factory without the prior written specific approval of IFFCO. The contractor`s labours/supervisors have to observe the shift timings etc. as prescribed under t he Factories Act, 1948 and Rules framed thereunder and intimate the same to IFFC O accordingly. For any odd hours they will have to take written permission from IFFCO. Entire Factory area is declared as Non-Smoking area, except where permiss ible. The contractor shall ensure to observe this caution carefully 34 | P a g e

WELFARE AND HEALTH OF CONTRACT LABOUR CANTEENS The appropriate Government may make rules requiring that in every estab lishment(a) To which this Act applies, (b) Wherein work requiring employment of contract labour is likely to continue for such period as may be prescribed, and (c) Wherein contract labour numbering one hundred or more is ordinarily employed by a conbtractor. One or more canteen shall be provided and maintained by the c ontractor for the use of contract labour. REST ROOMS In every place wherein cont ract labour is required to halt at night in connection with the work of an estab lishment. (a) To which this Act applies, (b) Wherein work requiring employment o f contract labour is likely to continue for such period as may be prescribed, Th ere shall be provided and maintained by the contractor for the use of contract l abour such number of rest rooms or such other suitable alternative accommodation within such time as may be prescribed. The rest rooms or the alternative accomm odation to be provided under sub- section (1) shall be sufficiently lighted and ventilated and shall maintained in clean and comfortable condition. OTHER FACILITIES It shall be the duty of every contractor employing contract lab our in connection with the work of an establishment to which this Act applies to provide and maintain (a) A sufficient supply of wholesome drinking water for th e contract labour at convenient places; 35 | P a g e

(b) A sufficient number of latrines and urinals of the prescribed types so situa ted as to be convenient and accessible to the contract labour in the establishme nt; (c) Washing facilities. FIRST AID FACILITIES There shall be provided and mai ntained by the contractor so as to be readily accessible during all working hour s a first aid box equipped with the prescribed contents at every place where con tract labour is employed by him. ADMINISTRATION OF CONTRACT LABOUR Work Order is given by the concerned deptt. to the Contractor. Contractors fill in an application Form for engaging contract labour every month /new entry. Conc erned department recommends the no. of labourers. Safety department imparts trai ning to the labourers. Personnel department gives its approval only after being assured about no. of the workers in the license of the contractor & workman comp ensation Insurance. Employment Card/Gate pass is issued by the Security departme nt. Gate pass is issued only for a month. Workmen who have gate pass can enter i n the premises

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What precautions should be taken while engaging Contract Labour? (1) (2) (3) (4) (5) (6) (7) (8) (9) Registration Certificate of Principal Employer License of the Contractor Selecti on of contractor Terms and conditions of the agreement Appointment of contract l abour Supervision and control Disciplinary matters Payment Statutory compliance LIMITATION OF THE STUDY Every study has certain limitations & restrictions. Whil e Contract labour is such an area in which a researcher has to depend on the off icial data provided by the Organisation & Contractors. Detail study in the topic and that to direct interaction with the contract labours at their work place & dwelling can find out more learnings. Recommendations and Suggestions Communication between contractor and labour should be transparent Contractor sho uld give weekly off , room facilities and medical facilities to the labours Mini mum wages should be paid to unskilled labours To provide safety measures Securit y contract should be commissioned under private security agency Payment should b e made under the payment of wages act and minimum wages act. 37 | P a g e

BIBLIOGRAPHY BOOKS Elements of Mercantile Law by IFFCO's MATERIALS act Labour N.D. Kapoor WEBSITE www.Iffco.nic.ins Registers and Forms of Contr

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