A

PROJECT REPORT
ON
STATUTORY COMPLIANCES UNDER LABOUR
LAWS AND EMPLOYEE RELATIONS AT TATA
MOTORS

SUBMI TTED FOR THE PARTI AL FULFI LLMENT OF
MASTER OF BUSINESS ADMINISTRATION
(HUMAN RESOURCE)
SUBMI TTED BY








INDIRA GANDHI NATIONAL OPEN UNIVERSITY, DEHRADUN








PROJECT COMPLETION CERTIFICATE




This is to certify that SANJAY MISHRA, student of MBA from INDIRA
GANDHI NATIONAL OPEN UNIVERSITY, DEHRADUN, has undertaken the
project titled STATUTORY COMPLIANCES UNDER LABOUR LAWS AND

Page 2 of 93
EMPLOYEE RELATIONS AT TML-PANTNAGAR under our guidance from
15 MARCH 2014 to 10
th
MAY 2014 and has completed the said project
successfully.

During her training tenure he was overwhelmed, confident & hard working. We wish
his all the very best for future endeavors.






External Guides Full Signature


Designation


Organizations Seal









Page 3 of 93
ACKNOWLEDGMENT

This project has been a great learning experience for me and I would like to express
our gratitude towards all the people who guided me throughout and without whose
guidance and support this project would not have been completed successfully. It is
not possible to mention the names of all the people who came as more than help for
me during the project. Nevertheless, I cannot stop myself from explicitly coming out
about some who have guided me throughout the project.

First of all I would like to thank TATA Motors for giving me an opportunity to work
with them and gain first hand practical knowledge of the corporate sector.
My sincere thanks and Gratitude to Mr. Rakesh Kumar Pathak, AGM ER, TATA
Motors (Pantnagar) for giving me the opportunity to work in this project. With this
project my skills and knowledge about industrial relations has become more strong. I
enjoyed while doing this Project.

I am really out of words to express my heartfelt gratitude to Mr. BRIJLAL
ARORA, Asstt. Manager - ER, Tata Motors (Pantnagar). His contribution has been
outstanding with regards to invaluable advice on all aspects of the project.

I would also like to extend my sincere gratitude to Mr. SANTOSH KUMAR Asst.
Manager -HR and Mr. GAURAV MANRAL, OFFICER ER - SAP at Tata Motors
for showing confidence in ME and providing this opportunity to learn things from
expert professionals.
I am also thankful to all the Staff at Tata Motors. The association with them has
been proved very beneficial. They gave me invaluable support and guidance through
out the project.

To sum up, my experience with Tata Motors has been a valuable one. It was a great
exposure. The value addition was enormous and the influence will be long lasting. I
thank everyone once again.

SANJAY MISHRA

Page 4 of 93
EXECUTIVE SUMMARY


The project was undertaken at TATA Motors Limited, Pantnagar, and the duration of
the project was six weeks. The title of the project is STATUTORY
COMPLIANCES UNDER LABOUR LAWS AND EMPLOYEE RELATIONS
AT TML- PANTNAGAR. The object of the project was to understand the legal,
welfare, labour laws engagement practices and Employee relations at TATA
Motors in details and to recommend changes in its existing practices, if required.

I studied the legal aspect, labour welfare and engagement programs being conducted
in the organisation along with the Employee related activities. An attempt has been
made to know the reasons for labours dissatisfaction and problems in industrial
relations.

To achieve this aim, data collection was done in two steps. First, detailed information
was gathered from various departments and Contract Cell about engagement and exit
procedure of contractor and the documents / records with them.

Secondly, discussion with ER representatives, Contractors & contract labour via a
semi-structured questionnaire. This set of data was then analyzed and
recommendations were made based upon it.

On analyzing the data collected, it was observed that Tata motors HR / IR practices
have been formulated very carefully and it takes into consideration almost every
aspect possible. However, the awareness level of contract labor was not up to the
mark. They should be given proper training about their rights. Though this practice
has its own advantages yet it cannot outweigh its advantages. Furthermore, it also
gives the employees a clearer picture of work that they are doing, thus enhancing the
satisfaction level.

IR practices are the crux of HR activity in an organization and it also majorly affects
the future of an organization. Thus, it is not possible to know and analyze all its
aspects within such a brief span of time.

Page 5 of 93

Table of content


Abstract.1
1. About Tata..................6-30
1.1 History of Tata Motors9
1.2 Milestones achieved.10
1.3 Company profile...11
1.4 Organisational structure
1.5 HR structure....30
2. Over view of the project..31
2.1 Problem Definition..31
3. RESEARCH METHODOLOGY33-34
4. STATUTORY COMPLIANCES36-60
5. EMPLOYEE RELATIONS.....62-71
6. CONCLUSION & FINDINGS.73-74
7. SUGGESTION AND RECOMMENDATIONS..76-77
8. ANNEXURE QUESTIONNAIRE & OTHER FORMATS.79-91
9. BIBLIOGRAPHY93.









Page 6 of 93








CHAPTER- 1
INTRODUCTION








Page 7 of 93
ABOUT TATA

Origin and founder-



The story of the Tata Group of business unfolds with the birth of its founder
Jamshedji Tata in the small town of Navasari in Gujarat in 1839. He breathed
his last in 1904 in Germany. His parents were Nuseerwanji and Jeevanbai Tata.
Nusserwanji was the first businessman in a family of Parsi Zorastrian priests.
Destiny called him to Bombay where he started trading. Jamshedji joined him
at the tender age of fourteen. He took admission in Elphinstone College and
while still a student he married Hirabai Daboo. Jamshedji graduated in 1858
and joined his father trading firm.

























Page 8 of 93
Group Holding Structure-

















Page 9 of 93
COMPANY PROFILE-



Tata Motors Limited is Indias largest automobile company,
with consolidated revenues of INR 1,65,654 crores (USD 32.5
billion) in 2012-13 It is the leader in commercial vehicles in
each segment, and among the top three in passenger vehicles
with winning products in the compact, midsize car and utility
vehicle segments. It is also the world's fourth largest truck and
bus manufacturer.


The Tata Motors Groups over 55,000 employees are guided by the vision to be
''best in the manner in which we operate, best in the products we
deliver, and best in our value system and ethics.''


Established in 1945, Tata Motors presence cuts across the length and breadth of
India. Over 6.5 million Tata vehicles ply on Indian roads, since the first rolled out in
1954. The companys manufacturing base in India is spread across
(Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar
(Uttarakhand), Sanand (Gujarat) and Dharwad (Karnataka). Following a strategic
alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group
Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat
powertrains. The companys dealership, sales, services and spare parts network
comprises over 3,500 touch points.

Tata Motors, also listed in the New York Stock Exchange (September 2004), has
emerged as an international automobile company. Through subsidiaries and associate
companies, Tata Motors has operations in the UK, South Korea, Thailand, Spain and
South Africa. Among them is Jaguar Land Rover, acquired in 2008. In 2004, it
acquired the Daewoo Commercial Vehicles Company, South Koreas second largest
truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has
launched several new products in the Korean market, while also exporting these
products to several international markets. Today two-thirds of heavy commercial
vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors
acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach
manufacturer, and subsequently the remaining stake in 2009. Hispanos presence is
being expanded in other markets.










Page 10 of 93
In 2006, Tata Motors formed a 51:49 joint venture with the Brazil- based Marcopolo,
a global leader in body-building for buses and coaches to manufacture fully-built
buses and coaches for India the plant is located in Dharwad. In 2006, Tata Motors
entered into joint venture with Thonburi Automotive Assembly Plant Company of
Thailand to manufacture and market the companys pickup vehicles in Thailand, and
entered the market in 2008. Tata Motors (SA) (Proprietary) Ltd., Tata Motors' joint
venture with Tata Africa Holding (Pty) Ltd. set up in 2011, has an assembly plant in
at Rosslyn, north of Pretoria. The plant can assemble, from semi knocked down
(SKD) kits, light, medium and heavy commercial vehicles ranging from 4 - 50 tonnes




Pune
1966
Jamshedpur
1945
Lucknow
1992
Dharwad
1997
Tata Motors
1945-2008
Pantnagar
2007
Tata Motors Manufacturing facilities in India
Sanand
2009




Tata Motors, the first company from India's engineering sector to be listed in the New
York Stock Exchange (September 2004), has also emerged as an international
automobile company. Through subsidiaries and associate companies, Tata Motors has
operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land
Rover.

Page 11 of 93
Tata Motors is also expanding its international footprint, established through exports
since 1961. The company's commercial and passenger vehicles are already being
marketed in several countries in Europe, Africa, the Middle East, South East Asia,
South Asia and South America. It has franchisee/joint venture assembly operations in
Kenya, Bangladesh, Ukraine, Russia, Senegal and South Africa.


The foundation of the company's growth over the last 60 years is a deep
understanding of economic stimuli and customer needs, and the ability to translate
them into customer-desired offerings through leading edge R&D.
Tata Motors is equally focused on environment-friendly technologies in emissions
and alternative fuels. It has developed electric and hybrid vehicles both for personal
and public transportation. It has also been implementing several environment-friendly
technologies in manufacturing processes, significantly enhancing resource
conservation
Through its subsidiaries, the company is engaged in engineering and automotive
solutions, construction equipment manufacturing, automotive vehicle components
manufacturing and supply chain activities, machine tools and factory automation
solutions, high-precision tooling and plastic and electronic components for
automotive and computer applications, and automotive retailing and service
operations.


Tata Motors is committed to improving the quality of life of communities by working
on four thrust areas employability, education, health and environment. The activities
touch the lives of more than a million citizens. The company's support on education
and employability is focused on youth and women. They range from schools to
technical education institutes to actual facilitation of income generation. In health, our
intervention is in both preventive and curative health care. The goal of environment
protection is achieved through tree plantation, conserving water and creating new
water bodies and, last but not the least, by introducing appropriate technologies in our
vehicles and operations for constantly enhancing environment care.
Tata Motors is the first Indian Company to introduce the Balance Scorecard System in
automotive sector in India. The scorecard incorporates SQDCM (Safety, Quality,

Page 12 of 93
Delivery, Cost and Morale). The implementation of the Balanced Scorecard has
enabled greater focus on different elements of operational performance. Defining,
cascading and communicating strategies across the organization have brought about
transparency and alignment.
Apart from Balance scorecard half yearly review of the employees is done on the
basis of attendance, kaizen at work place etc.

A suggestion scheme is started by the management wherein any employee
irrespective of his cadre can suggest an improvement in the work place and if this
suggestion is approved by the concerned authority the employee gets rewards points.
Once an employee achieves a specified limit of points he gets a gift voucher. Apart
from this employees also receive bonus on certain festive occasion.
TATA Motors reaffirms its commitment to minimize the adverse impacts of its
products, operations and services on the environment. It strives to:
Reduce the emission levels of vehicles in full compliance of the regulatory norms &
proactively work with the industry, Government, other related industries & agencies
to bring in international practices.
Use of environmentally sustainable technologies & practices for prevention of
pollution and the continual improvement in environment performance.
Conserve natural resources and energy by minimizing their consumption & wastage.
The unit is certified with ISO 14001: 1996 for Environmental Management System
(EMS)











Page 13 of 93
AREAS OF BUSINESS

Tata Motors makes passenger cars, multi-utility vehicles and light, medium and
heavy commercial vehicles.
Passenger cars: The Company launched the compact Tata Indica in 1998,
the Sedan Indigo in 2002 and the station wagon Indigo Marina in 2004. Tata
Motors also distributes Fiats cars in India.
Utility vehicles: The Tata Sumo was launched in 1994 and the Tata Safari in
1998.
Commercial vehicles: The commercial vehicle range extends from the light
two-tone truck to heavy dumpers and multi-axled vehicles in the above 40-
tonne segment.
Passenger buses: The Company also manufactures and sells passenger
buses, 12-seaters to 60-seaters, in the light, medium and heavy segments.























Page 14 of 93
TATA MOTORS - PANTNAGAR PLANT





The company has set up a plant for its mini-truck Ace and the passenger carrier Magic
(based on the Ace platform) at Pantnagar in Uttarakhand. The plant began commercial
production in August 2007. This is the company's fourth plant, after Jamshedpur
(commercial vehicles), Pune (commercial vehicles and passenger vehicles) and
Lucknow (commercial vehicles). The plant is spread over 1000 acres, of which 350
acres is occupied by the vendor park.
State-of-the-art facilities include weld shops, paint shops, engine and gear box shops
and assembly lines. The company has invested over Rs.1000 Crores in the plant.
Vendors for the vehicle have made additional investments to set up their plants in the
vendor park adjoining the plant. The operation has generated about 9000 direct and
indirect jobs in the plant, among vendors and service providers in the area.
Tata Motors Pantnagar has been declared the winner of National Energy Conservation
Award 2009, 1st prize in Automobile Manufacturing category by Ministry of Power,
Government of India





Page 15 of 93
VISION AND MISSION



Vision :

To develop TATA into a world class Indian car brand for innovative and
superior value vehicles.

Mission:

To be the most admired multi-National Indian car company producing
vehicles that people love to buy.
Create an organization that people enjoy working for, doing business with and
investing it.


























Page 16 of 93
MILESTONES

It has been a long and accelerated journey for Tata Motors, India's leading automobile
manufacturer. Some significant milestones in the company's journey towards
excellence and leadership are as follows:

1945
Tata Engineering and Locomotive Co. Ltd. was established to manufacture
locomotives and other engineering products.
1948
Steam road roller introduced in collaboration with Marshall Sons (UK).
1954
Collaboration with Daimler Benz AG, West Germany, for manufacture of
medium commercial vehicles. The first vehicle rolled out within 6 months of
the contract.
1959
Research and Development Centre set up at Jamshedpur.
1961
Exports begin with the first truck being shipped to Ceylon, now Sri Lanka.
1966
Setting up of the Engineering Research Centre at Pune to provide impetus to
automobile Research and Development.
1971
Introduction of DI engines.


Page 17 of 93
1977
First commercial vehicle manufactured in Pune.
1983
Manufacture of Heavy Commercial Vehicle commences.
1985
First hydraulic excavator produced with Hitachi collaboration.
1986
Production of first light commercial vehicle, Tata 407, indigenously designed,
followed by Tata 608.
1989
Introduction of the Tatamobile 206 - 3rd LCV model.
1991
Launch of the 1st indigenous passenger car Tata Sierra.
TAC 20 crane produced.
One millionth vehicle rolled out.
1992
Launch of the Tata Estate.
1993
Joint venture agreement signed with Cummins Engine Co. Inc. for the
manufacture of high horsepower and emission friendly diesel engines.



Page 18 of 93

1994
Launch of Tata Sumo - the multi utility vehicle.
Launch of LPT 709 - a full forward control, light commercial vehicle.
Joint venture agreement signed with M/s Daimler - Benz / Mercedes - Benz
for manufacture of Mercedes Benz passenger cars in India.
Joint venture agreement signed with Tata Holset Ltd., UK for manufacturing
turbochargers to be used on Cummins engines.
1995
Mercedes Benz car E220 launched.
1996
Tata Sumo deluxe launched.
1997
Tata Sierra Turbo launched.
100,000th Tata Sumo rolled out.
1998
Tata Safari - India's first sports utility vehicle launched.
2 millionth vehicle rolled out.
Indica, India's first fully indigenous passenger car launched.
1999
115,000 bookings for Indica registered against full payment within a week.
Commercial production of Indica commences in full swing.




Page 19 of 93

2000
First consignment of 160 Indicas shipped to Malta.
Indica with Bharat Stage 2 (Euro II) compliant diesel engine launched.
Utility vehicles with Bharat 2 (Euro II) compliant engine launched.
Indica 2000 (Euro II) with multi point fuel injection petrol engine launched.
Launch of CNG buses.
Launch of 1109 vehicle - Intermediate commercial vehicle.
2001
Indica V2 launched - 2nd generation Indica.
100,000th Indica wheeled out.
Launch of CNG Indica.
Launch of the Tata Safari EX
Indica V2 becomes India's number one car in its segment.
Exits joint venture with Daimler Chrysler.
2002
Unveiling of the Tata Sedan at Auto Expo 2002.
Petrol version of Indica V2 launched.
Launch of the EX series in Commercial vehicles.
Launch of the Tata 207 DI.
2,00,000th Indica rolled out.
5,00,000th passenger vehicle rolled out.
Launch of the Tata Sumo'+' Series
Launch of the Tata Indigo.
Tata Engineering signed a product agreement with MG Rover of the UK.
2003
Launch of the Tata Safari Limited Edition.
The Tata Indigo Station Wagon unveiled at the Geneva Motor Show.

Page 20 of 93
On 29th July, J. R. D. Tata's birth anniversary, Tata Engineering becomes Tata
Motors Limited.
3 millionth vehicle produced.
First CityRover rolled out
135 PS Tata Safari EXi Petrol launched
Tata SFC 407 EX Turbo launched
2004
Tata Motors unveils new product range at Auto Expo '04.
New Tata Indica V2 launched
Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign investment
agreement
Indigo Advent unveiled at Geneva Motor Show
Tata Motors completes acquisition of Daewoo Commercial Vehicle Company
Tata LPT 909 EX launched
Tata Daewoo Commercial Vehicle Co. Ltd. (TDCV) launches the heavy duty
truck 'NOVUS' , in Korea
Sumo Victa launched
Indigo Marina launched
Tata Motors lists on the NYSE
2005
Tata Motors rolls out its 500,000 th Passenger Vehicle
The Tata Xover unveiled at the 75th Geneva Motor Show
Branded buses and coaches - Starbus and Globus - launched
Tata Motors acquires 21% stake in Hispano Carrocera SA, Spanish bus
manufacturing Company
Tata Ace, India's first mini truck launched
Tata Motors wins JRD QV award for business excellence.
The power packed Safari Dicor is launched
Introduction of Indigo SX series - luxury variant of Tata Indigo
Tata Motors launches Indica V2 Turbo Diesel.
One millionth passenger car produced and sold

Page 21 of 93
Inauguration of new factory at Jamshedpur for Novus
Tata TL 4X4, India's first Sports Utility Truck (SUT) is launched
Launch of Tata Novus
Launch of Novus range of medium trucks in Korea, by Tata Daewoo
Commercial
Vehicle Co. (TDCV)
2006
Tata Motors unveils new long wheel base premium Indigo & X-over concept
at Auto Expo 2006
Indica V2 Xeta launched
Passenger Vehicle sales in India cross one-million mark
Tata Motors and Marcopolo, Brazil, announce joint venture to manufacture
fully built buses & coaches for India & markets abroad
Tata Motors first plant for small car to come up in West Bengal
Tata Motors extends CNG options on its hatchback and estate range
TDCV develops South Korea's first LNG-Powered Tractor- Trailer
Tata Motors and Fiat Group announce three additional cooperation agreements
Tata Motors introduces a new Indigo range
2007
Construction of Small Car plant at Singur, West Bengal, begins on January 21.
New 2007 Indica V2 range is launched.
Tata Motors launches the longwheel base Indigo XL, India's first stretch
limousine.
Common rail diesel (DICOR) engine extended to Indigo sedan and estate
range.
Tata Motors and Thonburi Automotive Assembly Plant Co. (Thonburi),
announce formation of a joint venture company in Thailand to manufacture,
assemble and market pickup trucks.
Roll out of 100,000th Ace.
Tata-Fiat plant at Ranjangaon inaugurated.

Page 22 of 93
Launch of a new upgraded range of its entry level utility vehicle offering, the
Tata Spacio.
CRM-DMS initiative crosses the 1000th location milestone.
Launch of Magic, a comfortable, safe, four-wheeler public transportation
mode, developed on the Ace platform.
Launch of Winger, Indias only maxi-van.
Fiat Group and Tata Motors announce establishment of Joint Venture in India.
Launch of the Sumo Victa Turbo DI, the new upgraded range of its entry-level
utility vehicle, the Sumo Spacio.
Tata Motors launches Indica V2 Turbo with dual airbags and ABS.
Launch of new Safari DICOR 2.2 VTT range, powered by a new 2.2 L Direct
Injection Common Rail (DICOR) engine.
Rollout of the one millionth passenger car off the Indica platform.
2008
Ace plant at Pantnagar (Uttarakhand) begins production.
Indica Vista the new generation Indica, is launched.
Tata Motors' new plant for Nano to come up in Gujarat.
Latest common rail diesel offering- the Indica V2 DICOR, launched.
Indigo CS (Compact Sedan), worlds first sub four-metre sedan, launched.
Launch of the new Sumo -- Sumo Grande, which combines the looks of an
SUV with the comforts of a family car.
Tata Motors unveils its People's Car, Nano, at the ninth Auto Expo.
Xenon, 1-tonne pick-up truck, launched in Thailand.
Tata Motors signs definitive agreement with Ford Motor Company to purchase
Jaguar and Land Rover.
Tata Motors completes acquisition of Jaguar Land Rover.
Tata Motors introduces new Super Milo range of buses.
Tata Motors is Official Vehicle Provider to Youth Baton Relay for The III
Commonwealth Youth Games Pune 2008.
Indica Vista the second generation Indica, is launched.
Tata Motors launches passenger cars and the new pick-up in D.R. Congo.

Page 23 of 93
2009
Tata Marcopolo Motors, Dharwad plant begins production.
Tata Motors launches Nano - The People's Car.
Introduction of New World standard truck range.
Launch of premium luxury vehicles - Jaguar XF, XFR and XKR and Land
Rover Discovery 3, Range Rover Sport and Range Rover from Jaguar and
Land Rover in India.
Tata Nano wins the Indian Car of the Year (ICOTY) Award.
Tata Motors launches the Sumo Grande MK II.
Tata Motors begins distribution of Prima World truck.
Tata Motors acquires remaining 79% in Hipo Carrocera.
Tata Motors launches the next generation all-new Indigo Manza.
FREELANDER 2 launched in India.
Tata Motors introduces the all new Tata 407 Pickup, Tata Super Ace and Tata
Ace EX.
First Jaguar Land Rover showroom opens in India.
Mr. Ravi Kant to become Non-executive Vice-Chairman of Tata Motors on
retirement, Mr. P.M. Telang to become Managing Director India Operations.
Tata Nano draws over 2.03 lakh bookings.
2010
Tata Ace becomes India's first 1-lakh brand in goods commercial vehicles.
Appointment of Mr. Carl-Peter Forster as Managing Director of Tata Motors.
Jaguar Land Rover announces opening of its Dealership in New Delhi.
Tata Motors to construct heavy truck plant in Myanmar under Government of
India's Line of Credit.
Tata Motors declared as the Commercial Vehicle Maker of the Year.
Tata Motors Passenger Car Division launches Tata Motors Service Edge' for
leading edge customer service.
Tata Motors displays Tata Nano EV at the 80th Geneva Motor Show.
Chief Minister of Punjab inaugurates Tata Motors supported State Institute of
Automotive and Driving Skills.

Page 24 of 93
Jaguar Land Rover announces Dr. Ralf Speth as Chief Executive Officer.
Tata Motors appoints Mr. Carl-Peter Forster as Group CEO.
Tata Motors Group displays the widest range of products and environment-
friendly technologies at Auto Expo 2010.
Tata Motors launches Magic Iris.
On 26th April 2010, Tata Motors sold its 4 millionth Commercial Vehicle.
2011
Jaguar celebrates 50 years of iconic E-Type
Jaguar c-x75 scoops Louis Vuitton award in Paris
Tata Pixel, new city car concept for Europe, displayed at the 81st Geneva
Motor Show
Range Rover Evoque wins Car Design of The Year
Tata Motors introduces the new Tata Indica eV2, the most fuel efficient car in
India with 25 kmpl mileage
Tata Motors launches the Tata Magic IRIS, a 3-4 seater 4-wheel passenger
carrier for public transportation
Tata Motors launches the Tata Ace Zip, a 600-kg micro truck for deep-
penetration goods movement
Jaguar Land Rover inaugurates new vehicle assembly plant in Pune India
Tata Nano begins international journey with Sri Lanka, as Tata Motors
celebrates 50th year of its International Business.













Page 25 of 93

PRODUCTS AT TATA MOTORS, PANTNAGAR

Tata Ace



Recognizing a gap in the market for small commercial vehicles, Tata Motors worked
towards an innovative solution. In an era where there is a need is to transport goods
speedily, conveniently and in a cost effective manner, while providing comfort, style
and easy maintenance, Tata Motors has developed the Tata Ace - India's first mini-
truck.
Ideal for short, narrow village roads as well as long highway hauls, for small bulky
loads and large heavy ones, the Ace is an innovative 4-wheeler offering for the first
time in this category. The small exterior belies the power-packed technologically-
superior engine which gives the Ace high power and high loading capacity. A new
revolution in transport, which is set to change the competitive landscape of the small
commercial vehicle segment. Tata Ace - the small, big machine.












Page 26 of 93
Tata Magic Iris




Tata Motors has launched two new commercial vehicles, Magic and Winger, aimed at
the small rural and urban passenger segment. Magic is the passenger version of the
Tata Ace and the Winger is a maxi-van, a version of the Renault panel van Traffic.
Tata magic comes under the commercial passenger carriers. The future of door-to-
door transportation across India. The new TATA Magic comes with plush seats,
plenty of leg room, and a smooth ride.

Tata Venture

Tata Motors launched the Venture MPV in the first month of 2011. Tata Venture is
offered with a 1.4-litre turbo diesel engine that generates 71 PS of power and comes
with 5,7 and 8 seating options in 3 row front facing ad will be available in 5-colours
and 3-trim levels.
Tata Venture can return a mileage figure of 15.42 KMPL as per ARAI standards. The
company has included features like dual HVAC, power steering, power windows,
reverse parking aid, keyless entry with engine immobiliser and rear wipers and also

Page 27 of 93
measured under 4-meters long. The Tata Venture is priced in the range of Rs. 4.05
lakhs and Rs. 5.07 lakhs.

Tata Zip

Tata Ace Zip is marketed as a micro truck in India. Priced between at
Rs.1.9 lakhs INR, the company aims to convert three-wheeler users to 4-wheelers.
One of the ideas that prompted the launch of this vehicle was to develop more
opportunities of self-employment in the country. Moreover there was a need for an
efficient last mile vehicle, TATA has found the gap in the market and released Ace
Zip. The 611 cc engine delivers a power of 11.3 hp at 3000 rpm. It has a permissible
loading capacity of 600 kg. It is best suited for use by villagers in carrying goods over
short distances.

Tata super Ace

Tata motors unveiled its new offerings based on the Ace platform the Super Ace as
well as the new 407 pickup truck. According to Tata Motors, these new products will
vitalize the sub-one-tonne to three-tonne segment with more payload options and
greater power, to suit customer requirements.
The Tata Super Ace is fitted with a four-cylinder, 475 IDI turbocharged, intercooled
diesel engine that produces 70 horsepower and which can propel the mini truck to a
claimed top speed of 125km/h! The vehicle has a payload of 1,000 kilos, a large load

Page 28 of 93
deck of 8-feet and 7-inches, a comfortable cabin, power steering and bucket seats, and
comes with a 12-month/50,000km warranty.

Tata Magic

The Tata Magic is a Micro van launched by Tata Motors in June 2007. The Magic is
the passenger version of the Ace mini-truck, the new Magic features an all-steel
cabin. It offers a flexible seating capacity of 4-7 passengers with adequate legroom.
Powered by a 16 bhp (12 kW), 700 cc water-cooled diesel engine, the Magic offers
high fuel efficiency and very low maintenance. The 12-inch tyres provide higher
ground clearance, and the rigid front axle is designed to handle tough roads. The
Magic's turning radius of 4.3 meters (14.1 ft) is nimble enough to navigate the by
lanes and traffic of India's crowded cities. The Magic has a clearly visible instrument
cluster, utility tray and a digital clock in the dashboard and also a provision for fitting
a radio.













Page 29 of 93
HR & IR DEPARTMENT AT TML

Tata Motors has formalized selection, evaluation, and payroll processes. The HR
function of Tata Motors consists of tracking existing employee data which includes
personal histories, skills, capabilities, accomplishments and salary. The department
records basic selection, training and development, capabilities and skills management,
compensation planning records and other related activities.
IR Department at Tata motors performs functions related to legal, health, welfare,
safety, security etc.
The HR structure at Tata Motors, Pantnagar is shown below:


THE HR STRUCTURE AT TML, PANTNAGAR




















PLANT HEAD
(Mr.V. GANDHI)
GM
AUTO PROJECT
(Mr.R. JULKA)
GM
MATERIAL
(Mr. NAGUDA)
DGM
HR
(Mr. VIKRAM)
AGM
HR
(S.G.KRISHNAN)
AGM
HR
(Mr. RAKESH
PATHAK)
EMPLOYEE
RELATIONS
(Mr. BRIJLAL
ARORA)
AGM
HR
SECURITY
(Mr. DEVNATH)
AGM
HR
HEALTH
(Dr. BHARADWAJ)
AGM
HR
ADMINISTRATION
(Mr. VERMAN)
DGM
QUANTITY
(Mr.S.K.JAIN)
DGM
MAINTENANCE
(Mr. TILAK)

Page 30 of 93


The chart below shows the functions of HR and IR:






























HR FUNCTIONS
TRACKING EXISTING
EMPLOYEE DATA
RECORDS BASIC
SELECTION ACTIVITY
RECORDS TRAINING
AND DEVELOPMENT
ACTIVITY
RECORDS CAPABILITIES
AND SKILLS MGT.
ACTIVITIES
RECORDS
COMPENSATION
PLANNING RECORDS
IR FUNCTIONS
LEGAL
HEALTH
WELFARE
SAFETY
SECURITY

Page 31 of 93





CHAPTER 2:
STUDY OBJECTIVES
AND PROBLEM











Page 32 of 93
OBJECTIVES OF THE STUDY



To study the Employee relations at TATA Motors in details and to recommend
changes in its existing practices, if required.
To study the various Acts under labour law.
To study about the Activities conducted by employee relations department.
To study the employees perception.
The working conditions at Tata motors.
To know whether the Acts are being followed as per mentioned.
To know about Contractors way of dealing with the workers.
To know about the wage structure of skilled, semi- skilled, unskilled
employees.
To understand the legal engagements.
To know about the welfare activities.
The study labour laws engagement practices.
To study the Employee relations at TATA Motors in details and to
recommend changes in its existing practices, if required.















Page 33 of 93














CHAPTER 3:
RESEARCH
METHODOLOGY






Page 34 of 93

There are two types of data collection methods, named as:

1. Primary data collection method.
2. Secondary data collection method.


My study was on the STATUTORY COMPLIANCES UNDER LABOUR LAW and
THE EMPLOYEE RELATIONS AT TATA MOTORS.

For the COMPLIANCES study, I used both the data collection methods in my project
i.e Primary Data collection method as well as Secondary Data collection method
1. Primary Data

Used for approaching labours directly and knowing about the
conditions they are working in.
I chose survey approach to collect Primary data by preparing a
Questionnaire for taking labours view as it was feasible from the point
of view of my subject & survey purpose.
I conducted random sampling for survey in my project.

2. Secondary data

Secondary data collection method was used to know about the
Statutory Compliances through labour laws books and search engines
such as Google; Yahoo etc.








Page 35 of 93
For the Employee relations study again I used Primary as well as Secondary data
collection method.

1. Primary Data:

Approached the employees and asked several question regarding the
activities been performed by the Employee Relations Department.


2. Secondary Data:

I visited the Tata Motors site to study about the Internal policies
formed
Studied the common practices implemented in Tata Motors.















Page 36 of 93


CHAPTER 4:
STATUTORY
COMPLIANCES UNDER
LABOUR LAWS













Page 37 of 93

ACTS RELATED TO FACTORIES & CONTRACT
LABOUR





























Legal
Compliances
under
Labour law
Various Acts
The Payment of
Bonus Act,1956
The Contract
Labour Act,1970
The Minimum
Wages Act1948
The ESIC Act,
1948
The Employment
Exchange
Act,1970
The Payment of
Gratuity Act,1972
The EPF and
Miscellaneous
Provisions
act,1952
The Factories
Act,1948

The Payment of
wages Act

Page 38 of 93

CONTRACT LABOUR-


Contract Labour is a term applied to labour as employed to perform some work,
who has no direct employer-employee relation with the party called principal
employer, for whom that work is ultimately done. The relationship between the
principal employer for whom the work is done & the workers who actually do the
work is mediated by one or more parties who actually employ the workers, pay them
and have an employer-employee relationship with them. The parties who act as
intermediary between the principal employer and the workers are called contractors
and their relationship with principal employer is governed by a contract between
them. This system of work being done for a principal employer through one or more
contractors is termed as contract labour system.


NECESSITY OF EMPLOYMENT OF CONTRACT LABOUR

The employment of contract labour would relieve the principal employer of
the need of direct supervision & control over the employees.
The contract labour will ensure speedy completion of the assigned work
according to the specifications.
The employment of contract labour would relieve the principal employer from
the burden of looking after the non-essential things and concentrate only on
his main activity/activities of manufacturing goods & rendering materials
service.
The employment of contract labour would be comparatively cheaper with
lesser liability for supervision & control.
There will be lesser industrial labour unrest in respect of such contract labour.
The employment of contract labour is very common for the following jobs:
1. Construction, addition / modification to the structures of the factory / an
establishment.
2. Breakdown of machinery.

Page 39 of 93
3. Requiring periodical maintenance of machinery & equipment like the service
contracts for maintenance of A/Cs electrical gadgets & computers.
Other jobs which need to be carried out at regular intervals like pesticide
contract, jobs which can be done on weekly holidays/other holidays of the
factory by the contract labour.
Project works requiring construction, erection work. etc.
For the above reasons ,the principal employers are engaging contract labour on
the premise of an undertaking for civil works, transport of the employees,
watch & ward, gardening ,housekeeping, maintenance of machines ,electrical
equipments etc.



15 15
LEGAL ROLE IN INDUSTRY
COMPANYS ROLE
(owner is responsible)
COMPANYS ROLE
(owner is responsible)
CONTRACTORS ROLE
(contractor is responsible)
If contractor is irregular, then,
company is responsible
Factories act payment of wages
Health Minimum wages
Safety Gratuity
Welfare Bonus
ESIC Equal remuneration
PF (if girls are working)
Factories Act, 1948
Contract labour Act, 1970
Apprentices Act, 1961
Employees provident fund Act, 1952
Employees state insurance Act, 1948
Employment exchange Act, 1959
Maternity benefit Act, 1961
Minimum wages Act, 1948
Payment of bonus Act, 1965
Payment of gratuity Act, 1972
Payment of wages Act, 1936
check
Follow
up


Page 40 of 93

1. CONTRACT LABOUR REGULATION AND
ABOLITION ACT, 1970-

This act applies to any establishment in which 20 or more workmen are employed on
a contract basis on any day of the last one year and also to all contractors who employ
or have employed 20 or more workmen on any day of the preceding twelve months.
The act however, does not apply to the establishments in which work is intermittent or
casual in nature. While the decision regarding whether the work is of casual nature or
not rests on the appropriate government, if the work is carried out on more than 120
days in a year it cannot be considered as intermittent.

Appropriate Government
The Central Government constitutes an advisory board called the Central Advisory
Contract Labour Board to decide on matters arising from the administration of this
Act. The Central Advisory Board, a tripartite body, holds meetings and considers
various issues, in particular those relating to the abolition of the contract labour
system in certain establishments. Similarly, the State Government also constitutes a
State Advisory Contract Labour Board. The jurisdiction of the Central and State
Government boards has been laid down by the definition of the Appropriate
Government in Section 2(1) (a) of the Act as amended in 1986.

Registration and Licensing
Every principal employer to whom this act applies should register his establishment in
the prescribed manner for employing contract labour. If Government at any point of
time is dissatisfied with the practices followed, it can revoke the registration of an
establishment. In addition, Government may, after consultation with the Central
Board or the State Board, prohibit employment of contract labour in any process,
operation, or other work in an establishment. The contractor to whom this act applies,
also necessarily has to get a license for his operations from a licensing officer, and
this needs to be renewed from time to time. A dissatisfied licensing officer has the
power to revoke or suspend a license.


Page 41 of 93

Provisions for Workers
For the health and welfare of contract labour certain provisions have been made
mandatory by the Contract Labour Act. Amongst other things, facilities required to be
provided under sections 18 and 19 of the Act are sufficient supply of wholesome
drinking water and a sufficient number of latrines and urinals. If contract labors are
required to halt at night in connection with the work, the contractor is bound to
provide hygienic rest rooms and separate rooms for women workers. If the number of
contract workers in an establishment exceeds 100, canteen facilities need to be
provided as well. The Act delineates the necessary maintenance conditions of the
canteen. First-aid facilities should also be available to the contract workers with a
person trained in first aid in attendance.
It is the primary responsibility of the contractors to provide all the facilities to the
workers as delineated in the Act. However, if the contractor fails to provide these
facilities, the responsibility falls on the principal employer to provide the same within
30 days of the expiry of the time allowed to the contractor.

Wages
A contractor has the freedom to choose the wage period in which the wage is payable.
However, no wage period can exceed one month and wages have to be paid directly to
the worker within the tenth day after the last day of the wage period. Usually wages
have to be paid without any deductions of any kind. The principal employer should
ensure the presence of his authorized representative at the place and time of
disbursement of wages by the contractor to the workmen and it is the duty of the
contractor to ensure the disbursement of wages in the presence of such an authorized
representative. The authorized representative of the principal employer shall record
under his signature a certificate at the end of the entries in the register of wages and
all registers are required to be maintained as per the Act.

Prohibition-
Apart from the regulatory measures provided under the Act for the benefit of the
contract labour, the appropriate government under section 10(1) of the Act is
authorized after consultation with the Central or State Board to prohibit employment

Page 42 of 93
of contract labour in any establishment in any process operation or other work. Such
restrictions are often decided on the following basis.
whether the work is perennial in nature;
whether the work is incidental or necessary for the work of an establishment;
whether the work is sufficient to employ a considerable number of whole time
workmen;
whether the work is being done ordinarily through regular workmen in that
establishment
or a similar establishment.
The Central Government on the recommendations of the Central Advisory Board has
prohibited employment of contract labour in various operations and categories of jobs
in different establishments. Many notifications have already been issued in this
regard.

Enforcement-
In the Central sphere, the Central Industrial Relation Machinery (CIRM) has been
entrusted with the responsibility of enforcing the provisions of the Act. Field Officers
conduct regular inspections to detect violations of the provisions of the Act. Though
the Act lays rules as to how the contractual employment should be maintained and
there are government officials for inspection to detect violations of the norms,
because of the presence of two separate management systems viz., the contractor and
the principal employer, contract labour often does not get their due and this has given
rise to a number of litigations.
One of the important sources of controversy is whether contract labour can be used in
the core activities of an establishment together with the regular employees.

The Core & non-core divide and Amendments of the Act-
A set of perennial or core activities is defined in terms of what a company had
declared as its main activities during the time of registration under the Factories Act
of 1948. Several litigations arose because of the use of contract labour in the so called
core activity and a number notifications were issued prohibiting the companies to
employ contract labour for some specified work. At present an establishment is not
prohibited, in general, to employ contract labour for the core activities. A state

Page 43 of 93
government however, can amend this provision of the act. A few state governments
have gone ahead with an amendment.

2. THE EMPLOYEES PROVIDENT FUNDS AND
MISCELLANEOUS PROVISIONS ACT, 1952
As per section 2(f) of the Act, any person employed by pr through a contractor in or in
connection with the work of an establishment is also an employee unless otherwise
covered under the Act and will thus be eligible to get the benefits of the scheme
framed under the Act. Thus, the employee engaged through the contractor will be
liable to be covered under the Employees Provident Funds and Miscellaneous
Provisions Act.
Form 12 under the Act and scheme contains a separate column employees engaged
through the contractor.
Also, the Employees Funds Organization in its clarification No. E.1/17(3)93/Vol.111
dated 12-02-2001 has opened the allotment of separate codes to the employees
rendering services on contract basis.








Page 44 of 93


EPF POLICY IN TATA-

Employee Share - 12%

Employer Share- 13.61%
13.61% divided in to 5 major parts-
Acc. No-1- 12%employee+3.67%employer share
Acc. No-2- 1.10%
Acc.No-10- 8.33%
Acc.No-21- 0.50%(EDLI)(EMPLOYEE DEPOSIT LINK INSURANCE)
Acc.No-22- 0.01%(INSPECTION CHARGES)


Some Important Date Related with EPF-

Last Date Of EPF Challan Sub- 15
th
of Every month
Last date of PF challan return - 25
th
of every month
































Page 45 of 93


3. THE EMPLOYEES STATE INSURANCE ACT, 1948
The Employees State Insurance Act,1948 ,provides to worker not only accident
benefit but also other benefits such as sickness benefit, maternity benefit and medical
benefit.
Wage Ceiling: Every employee drawing wages upto 15,000.00 per month is required
to be insured under the act.
Objective of the Act: The object of the Act is to secure sickness, maternity,
disablement and medical benefit to employees of factories and establishments and
dependents benefits to the dependents of some employees.
Following the promulgation of the ESI Act the Central Govt. set up the ESI
Corporation to administer the Scheme. The Scheme was first implemented at Kanpur
and Delhi on 24th February 1952.
Applicability of the Act & Scheme:
Is extended in area-wise to factories using power and employing 10 or more person
and to non-power using manufacturing units and establishment employing 20 or more
person up to 15,000/per month with effect from 1
st
may 2010. It has also been
extended upon shops, hotels, restaurants, and equipment maintenance staff in the
hospitals.
The ESI Act, (1948) applies to following categories of factories and establishments in
the implemented areas:-
i) Non-seasonal factories using power and employing ten (10) or more persons
ii) Non-seasonal and non power using factories and establishments employing twenty
(20) or more persons.
iii) The contribution comprise of employers contribution and employees contribution
at a specified rate. Contribution rate-
Employees - 1.75%
Employer - 4.75%
Total - 6.50%
Time limit for making Payment of contribution:-
The total amount of contribution is to be deposited with the authorised bank through
a challan in the prescribed from in quadruplicate on ao before 21
st
of month following
the month in which the wages fall due.

Page 46 of 93
Some Important form related with ESIC- Form No1- Employees registration -

Form no 3- Return of Declaration Form -






Page 47 of 93

4. THE FACTORIES ACT, 1948
"Factory" means any premises including the precincts thereof-
(i) whereon ten or more workers are working, or were working on any day of the
preceding twelve months, and in any part of which a manufacturing process is being
carried on with the aid of power, or is ordinarily so carried on, or
(ii) whereon twenty or more workers are working, or were working on any day of the
preceding twelve months, and in any part of which a manufacturing process is being
carried on without the aid of power, or is ordinarily so carried on.

"worker" means a person [employed, directly or by or through any agency (including
a contractor) with or without the knowledge of the principal employer, whether for
remuneration or not], in any manufacturing process, or in cleaning any part of the
machinery or premises used for a manufacturing process, or in any other kind of work
incidental to, or connected with, the manufacturing process, or the subject of the
manufacturing process [but does not include any member of the armed forces of the
Union];
A perusal of the definition indicates that the Factories Act does not make any
discrimination between person employed directly by the principal employer and
person who is employed by or through the contractor in case all other conditions as
given in the definition are fulfilled. Therefore, such contract labour will be entitled to
all the privileges and benefits available to workers under the Factories Act including
those relating to weekly holidays, compensatory holidays, overtime wages, leave with
wages, etc. Some of the points covered in this Act are:-
1. Cleanliness- Every factory shall be kept clean and free from effluvia arising
from any drain, privy or other nuisance.
2. Proper disposal of wastes and effluents.
3. Maintaining proper ventilation and temperature.
4. Dust and fume- In every factory in which, by reason of the manufacturing
process carried on, there is given off any dust or fume or other impurity of
such a nature and to such an extent as is likely to be injurious or offensive to
the workers employed therein, or any dust in substantial quantities, effective
measures shall be taken to prevent its inhalation and accumulation in any

Page 48 of 93
workroom, and if any exhaust appliance is necessary for this purpose, it
shall be applied as near as possible to the point of origin of the dust, fume or
other impurity, and such point shall be enclosed so far as possible.
5. Overcrowding- No room in any factory shall be overcrowded to an extent
injurious to the health of the workers employed therein.
6. Lighting-In every part of a factory where workers are working or passing
there shall be provided and maintained sufficient and suitable lighting,
natural or artificial, or both.
7. Drinking water-In every factory effective arrangements shall be made to
provide and maintain at suitable points conveniently situated for all workers
employed therein a sufficient supply of wholesome drinking water.
8. Latrines and urinals-In every factory--
(a) Sufficient latrine and urinal accommodation of prescribed types shall be
provided conveniently situated and accessible to workers at all times while they at the
factory;
(b) Separate enclosed accommodation shall be provided for male and female workers;



















Page 49 of 93
5. THE MINIMUM WAGES ACT, 1948
"Wages" means all remuneration, capable of being expressed in terms of money,
which would, if the terms of the contract of employment, express or implied, were
fulfilled, be payable to a person employed in respect of his employment or of work
done in such employment 7[and includes house rent allowance], but does not include-
(i) the value of- (a) any house, accommodation, supply of light, water, medical
attendance, or
(b) any other amenity or any service excluded by general or special order of the
appropriate government;
(ii) any contribution paid by the employer to any pension fund or provident fund or
under any scheme of social insurance;
(iii) any travelling allowance or the value of any travelling concession;
(iv) any sum paid to the person employed to defray special expenses entailed on him
by the nature of his employment; or
(v) any gratuity payable on discharge;
Sub- rule IV of rule 25 of the Contract Labour (Regulation and Abolition) Act
provides that the principal employer will ensure that that the workers as engaged
through the contractor will be paid wages not less than the minimum rate of wages as
fixed under the Minimum Wages Act.

Overtime
Where an employee, whose minimum rate of wages is fixed under this Act by the
hour, by the day or by such a longer wage-period as may be prescribed, works on any
day in excess of the number of hours constituting a normal working day, the employer
shall pay him for every hour or for part of an hour so worked in excess at the overtime
rate fixed under this Act or under any law of the appropriate government for the time
being in force, whichever is higher.

Maintenance of registers and records
i) Every employer shall maintain such registers and records giving such particulars of
employees employed by him, the work performed by them, the wages paid to them,
the receipts given by them and such other particulars and in such form as may be
prescribed.

Page 50 of 93
ii) Every employer shall keep exhibited, in such manner as may be prescribed, in the
factory, workshop or place where the employees in the scheduled employment may be
employed, or in the case of out-workers, in such factory, workshop or place as may be
used for giving out work to them, notices in the prescribed form containing prescribed
particulars.
iii) The appropriate government may, by rules made under this Act, provide for the
issue of wage books or wage slips to employees employed in any scheduled
employment in respect of which minimum rates of wages have been fixed and
prescribed in the manner in which entries shall be made and authenticated in such
wage books or wage slips by the employer or his agent.

























Page 51 of 93
6. THE PAYMENT OF BONUS ACT, 1965
Neither the Contract Labour (Regulation and Abolition) Act nor the Payment of
Bonus Act provides that the said Act will be applicable. The principal employer is
liable to pay only wages only to the employees of the contractor if the latter fails to
make the payment of wages to his employees. It has been further held that the bonus
will not be payable by the principal employer to the workers engaged by two
contractors since the bonus does not come within the purview of the wages.

An Act to provide for the payment of Bonus to persons in certain
establishments on the basis of profits, production or productivity.
Extends to the whole of India.
Applies to every establishment wherein 20 or more are employed
The Appropriate Govt. shall apply the Act to any other establishment,
including a factory to which the Factories Act, 1948 applies, wherein less than
20 workers are employed provided the number of persons employed is not less
than 10.

Eligibility to Bonus
employee whose salary/ wages does not exceed Rs 10000 per month
who has worked in the establishment for not less than 30 days
Not disqualified to claim bonus due to fraud, theft or any other misconduct
Bonus of every person drawing salary between Rs 3500/- and Rs 10000/- per
month shall be calculated as if his salary were Rs 3500 pm
Rate of Bonus
Minimum :8.33% of salary/wages
Maximum 20% of salary/wages
Computation of bonus as per Schedule I to IV of the Act.
Adjust any interim bonus paid while making payment of the final bonus.

Disputes on Bonus
The Bonus Act does not provide for any machinery to resolve disputes relating
to bonus. For this, the Industrial Dispute Act shall be referred to.


Page 52 of 93
For calculating the number of working days
the days for which the worker has been laid off
the days he has been on leave with pay
the days he has been absent due to temporary disablement caused by an
employment injury
the days a woman employee has been on maternity leave Shall be taken in to
account.



























Page 53 of 93
7. THE PAYMENT OF GRATUITY ACT, 1972
The Kerala Industrial Employees Payment of Gratuity Act, 1970, followed by the
West Bengal Employees Payment of Compulsory Gratuity Act, 1971 and the intention
of the other States to have similar Acts in their respective states necessitated the
Central Act so as to avoid different treatment to employees of establishments having
branches in more than one states who are subject to transfer from one state to another.
The Payment of Gratuity Act, 1972 extends to the whole of India.

Applies to every factory, mine, plantation and other establishment wherein 10
or more workers are employed.
Gratuity is in the nature of a retirement benefit payable to an employee for a long and
meritorious service.
Gratuity is payable to an employee on termination of his employment after he has
rendered continuous service for not less than five years
on his superannuation
on his resignation
on his death or disablement due to employment injury or disease

Rate of gratuity
15 days wages for every completed year of service
Rates applicable to Working Journalists depends upon the service of the
employee as provided in the Working Journalists and Other Newspaper
Employees (Conditions of service) and Miscellaneous Provisions Act, 1955
The average pay of the monthly rated employee shall be taken by
dividing the monthly salary/ wages by 26 and not by 30









Page 54 of 93
8. THE PAYMENT OF WAGES ACT, 1972
An Act to regulate the payment of wages to certain classes of persons
Extends to the whole of India
Responsibility of payment wages rests with the employer
Employer to fix Wage Period
No wage period shall exceed one month.

Time of Payment of wages
7
th
day of wage month where less than 1000 are working
10
th
day where more than 1000 are working
No payment in KIND

Permissible deduction from Wages
fines
for absence from duty
for damage caused to the property of the employer
for the amenities provided, like house accommodation
for recovery of advance or adjusting over payment of wages
towards EPF, ESI, Labour Welfare Fund and similar deductions permitted
under any Act or the Standing Orders of the establishment
for Life Insurance/ general insurance policies and Housing loan.











Page 55 of 93
LABOUR PRACTICES AND WORKING CONDITIONS IN TATA MOTORS
LIMITED

This section attempts to explain labour practices and working conditions in Tata
Motors Limited. The analyses are primarily based on interviews with and case studies
of contract workers up to the level of Operator.
Production in Tata is largely supported through subcontracting. The company
subcontracts the production of automobile components, to other small firms. In-house
production in Tata therefore limited to final assembling.
The workforce in Tata is configured in core and periphery levels. The core level
consists of all regular workers of the company; contract workers form the periphery
level. Regular workers include all managerial staff down to the level of supervisors
and workers on the production line. Contract workers constitute the workforce
engaged in supporting activities like transportation, gardening, security services,
housekeeping as well as mainline production. In addition, there are regular and
contract workers in supplier (subcontracted) firms on mainline production. The
workforce up to the level of supervisor is further categorised as engineers,
technicians, operators and helpers.

The company has a unique system of labour recruitment. The company does not
prefer to appoint local workers due to various reasons. The major share of the
workforce is from far away, largely from the rural and semi urban areas of the states
of Bihar, Rajasthan, Uttaranchal, U.P.

Page 56 of 93


ELEMENTS OF CONTRACT MANAGEMENT SYSTEM





CONTRACTOR ENGAGEMENT PROCEDURE

For short term/long term/project work/job work/manpower supply, new contractors
committee is launched in TML for smooth working on contract management. Each
Department has been given different roles to comply before / after appointing any
Contractor.
Break-up of Contract Work Force in TML
C
a
t
e
r
i
n
g

2
%
L
a
n
d
s
c
a
p
i
n
g

4
%
F
i
r
e

&

S
a
f
e
t
y

5
%
C
i
v
i
l

&

C
o
n
s
t
r
u
c
t
i
o
n

8
%
T
r
a
n
s
p
o
r
t
a
t
i
o
n

1
0
%
H
o
u
s
e

K
e
e
p
i
n
g

1
2
%
O
p
e
r
a
t
i
o
n
s

&

M
a
i
n
t
e
n
a
.
.
.
H
e
l
p
e
r

3
3
%
Catering 2%
Landscaping 4%
Fire & Safety 5%
Civil & Construction 8%
Transportation 10%
House Keeping 12%
Operations & Maintenance 25%
Helper 33%
PLANT HEAD


GM HR/ IR

MEDICAL CELL

INDUSTRIAL
RELATION

LEGAL CELL

SAFETY CELL

SECURITY CELL
AGM- FINANCE

CONTRACT CELL

Page 57 of 93



ROLES OF VARIOUS CELLS IN TML-
Role of Contractors
At the time of joining, contractors need to fulfill the following conditions:
Letter of Proposal/Quotation of work.
Past Work Experience.
Area of work.
Copies of registration under the local Govt. authorities - Labor office/ ESIC
office / EPF, Office/Sales Tax/Central Excise etc.
Engagement of labors according to requirements.
Ensure Payment of wages before 10th of each month to the contractual
workers.
Timely deposit of contribution/fees under, ESIC, EPF and contract license.
Timely submission of returns to Labor Office, ESIC office, EPF office.
To maintain proper records whichever desired by the Govt. authorities.
All employees must be covered under the ESIC and EPF scheme from date of
joining.
ESI registration in respect of newly recruited employees should be done
before deploying them on work in side the plant otherwise entry should be
restricted.
After ESI registration, concerned contractor should liaison with the local ESIC
office also that ESI cards are issued to all newly recruited employees within a
week.
An insurance policy is only applicable where no ESIC branch exists.
Request for
Quotation
Making
comparison
(L1, L2, L3
etc.)

Shortlisting on
the basis of
negotiation
Checking of
Legal
Documents

Agreement
Finalisation


Work Order
Final
Appointment

Requisition
from user
with Scope
of Work


Page 58 of 93
Contractors will fill-up specific format as prescribed by contract cell.
Contractors will submit monthly compliances on or before 25th of each
month.
Contractors should ensure that their employees working in the plant are not
engaged with other employment.
Contractors shall be fully responsible for any kind
accident/incident/loss/claim/ expenses / damages etc.
Contractor furnishes details of person in standard data sheet issued by security
department along with required documents and photographs to Security
department.
Contractors should ensure that monthly salary of their respective
workers/employees is made through Bank only on or before 10th of every
month positively.

Role of Contract Cell
Contractors are registered with Local Govt. authorities viz Labour office,
ESIC office, EPF office, Sales Tax office/Central Excise office/Companies Act etc.
Asks for legal opinion from concerned departments before engaging any
contractor.
Provides introduction letter to all concerned department related to contractors.
Confirm legal sections opinion before engaging any contractor.
Prepares a contract / agreement (Tata Motors with Contractor.)
Releases final payments subject to confirmation of submission of legal
compliances by the contractor from legal section.

Role of User Department
User department confirms with Contract Cell, Legal section, Safety, Security
and Medical department for all formalities as mentioned above.

Role of Safety Cell
Safety department confirm premedical check-up of contractors employees
before they start work on site on prescribed format.
After verifying medical fitness certificate, safety department stamp & sign the
gate pass.

Page 59 of 93
Safety department give safety training to contractors employees immediately
after starting their work in the plant.
Safety department ensure that contractors employees are wearing safety
equipments like shoe, helmet, gloves etc. and following safety rules meticulously.
To avoid any change to take undue advantage by the contractual workers, the
safety department affix the stamp of Safety department instead of affixing the
stamp of Tata Motors Ltd. - Pantnagar on the passes being issued to the
contractors labors.
Safety department carries out random checking of all contractual workers
inside the plant in every shift to ensure that safety norms are being complied with by
them strictly and if any shortcomings are found, the same is brought into the notice of
all concerned department for taking action as deemed proper.


Role of Medical Cell
Medical department ensures the medically fitness of contractors employees
and a certificate to this effect be forwarded to safety department for further action.

Role of Legal Cell
To have proper check on Govt. related documents, the legal section first
carries out scrutiny of documents of concerned contractor and then only the contract
of the concerned contractor is finalized.
After Checking of all legal requirements like Safety, Medical etc., Contract
cell propose for Gate entry passes to Security department.
If the contractors do not have local registration and nature of job is casual then
Contractors Should provide / produce pay slips, ESIC card and ESIC Form No. 105.
Checking of monthly compliance.
Proper Audit of contractors records.
Guides contractors for maintaining all relevant records.
Monthly bills clearance only after getting concurrence of Legal Cell.

Role of I.R. Cell
Ensures distribution of Identity Cards to all contractors employees.
Ensure distribution of ESIC slips/ESIC cards to all contractors employees.

Page 60 of 93
Ensure payment of monthly wages to all contractual workers/employees on
time.
Ensure payment of bonus & encashment of leaves to all contractual workers/
employees in Time by the concerned contractor.

Role of Security Cell
Security department ensures that contractors have filled-up prescribed format
in all respect for contractual employees and it is signed by user/Safety/legal
department.
After approval from user/safety/legal cell, security department issues gate
entry pass/I.D. card or temporary permit.
Ensured that I. D. Cards are issued to all contractual employees duly
completed in all respect.
Entry inside the Plant should only be allowed on the basis of gate entry
pass/I.D. Card or temporary permit so issued.
Security personnel deployed on every access point/gate should carry out
thorough checking of all contractual workers before permitting them to have
an entry in side the plant in every shift to avoid any un-authorized entry.
Uniformity to be established for entry passes for all contractors & vendors.
Authenticity of data entered in gate pass shall be verified by Security
department.
Issued laminated gate pass for continue employees. If gate pass of a person is
lost, it is reissued by security department having same validity.












Page 61 of 93









CHAPTER 5:
EMPLOYEE RELATIONS



















Page 62 of 93
EMPLOYEE RELATIONS DEPARTMENT WORKS ON THE
FOLLOWING ACTIVITIES:

DISCIPLINARY ACTION PROCEDURE





























Department head
verifies
Related facts for
Disciplinary action

HR Director
Investigates
The facts
presented

Genuine outcome is
Confirmed and
Recommendations
Are made

Approves
Termination
Of the employee

HR director confirms
final Payment with
deptt.
head

If has to be
Terminated
The GM reviews
facts
With deptt. head

Prepares
Termination
Letter and given to
employee

Finance deptt.
prepares
Final payment

Notice in Staff
Personal
File.


Page 63 of 93




BLUE COLLAR RECRUITMENT


























Advertisements
given
On various sources

Filtration of
Eligibility
Criteria

Written Test
is conducted

Documents are
collected

Medical Test

Walk in Interview

Selection list is
prepared

Joining formalities
are
done

Finally joins the
organization


Page 64 of 93



LONG ABSENTEEISM PROCEDURE

























Data generated
from SAP

Sent to IR
Department
Sent to all
Departments for
Verification

Those found absent
without
Prior information are
sent
Termination Letter

Details are
removed
From SAP

Informed to
Concerned
Department
Letter to Staff
personal
file
Termination approved
By AGM


Page 65 of 93

GRIEVANCE REDRESSAL MECHANISM



























HR
Representatives
Visit the shop
floors

Register is
maintained
For Queries

Acknowledged by
the
Employee with
signature

Communicated to
Concerned line
manager

Communicated to
Concerned officer

If not solved within
7 days
From registration
Is communicated to
Employee with
Some settlement
If Resolved

Communicated to
Employee

Not Resolved


Page 66 of 93

EMPLOYEE ENGAGEMENT

ENGAGEMENT

























Cultural
Engagement

Committees

Business Linked
Engagement

Brahma Kumari

Induction
Programme

Spandan

Awareness
Programme

Canteen

Quality, etc.

Safety

Girls

Sports

Transport

Welfare


Page 67 of 93
TIME OFFICE MANAGEMENT
ACTIVITIES
























Schedule

Reports

Induction
Programm
e

Leave
Updation

B+C
Updation

Sunday
Workings

Over time
Updation

Bus Late
Updation

Morning Report

Shift mismatch Report

Long Absenteeism Report

Weekly E.R Report

Total Present Days Report


Page 68 of 93



REPORTS

























Morning
Report

Shift
Mismatch
Report

Morning
Report
Long
Absenteeis
m
Report

Weekly
E.R
Report

Total
Present
Days
Report

Over Time

Ladies Overstay

Absenteeism %

MOR

Shift wise Attendence


Page 69 of 93


REPORT GENERATION PROCESS





PURPOSE

Control Absenteeism
Monitor Ladies Overstay
Man Power Review


SHIFT SCHEDULE PROCESS









PURPOSE

Man Power Planning
Cost saving
Generation of Report
from
SAP

PPT sent to Office for
Morning Meeting

Sent to Shop Heads
and FPIG

Every Saturday Data
received in
Excel from every shop

Updated everyday
according to
Requirements of
employees

Turned into the
prescribed
Format
Uploaded in SAP

Mail is sent to shop
heads,
if
Shift schedule is not
received

Page 70 of 93


LEAVE UPDATION PROCESS





PURPOSE

Payment of Salary.
Availability of leaves.
Information regarding Leaves left individually.


OT UPDATION PROCESS













Mgt. People go
to Various
shop
For leave card
updation

Leave cards
are updated
& queries
Solved

Uploaded in
SAP

OT Forms are
received

Salary is
processed for
extra
payment
Updated in
MS Access

Final Report is
submitted
To share
services, Pune

Report
generated
from
Access


Page 71 of 93



PURPOSE

Extra Payment for OT.
Individual Record of OT.



SUNDAY WORKINGS PROCESS










PURPOSE

Extra Payment for Sunday workings.
Record of individual Sunday workings.




Data generated
from SAP

Input updated
for extra
payment

Report named,
Sunday
Payment is
made

Final Excel
sheet prepared

Sent to shared
services,
Pune


Page 72 of 93









CHAPTER - 6
FINDINGS AND
CONCLUSIONS













Page 73 of 93

RESULTS AND DISCUSSIONS-

SUMMARY/FINDINGS-
i. We found few discrepancies in the wage structure for contract workers.
ii. Salary bifurcation in certain cases is not clear. i.e. neither to employees of
contractors nor to their representatives.
iii. Wage slips are not issued in the format prescribed by the principal employer
presently.
iv. The primary study also found that wage increments are unevenly distributed
among workers.
v. Categorization of worker in the classes of skilled, semi skilled and unskilled
not clear.
vi. Wages for overtime are not fixed. In many cases they were found to be
conditional (e.g. if whole assembly line runs, only then it would be overtime).
vii. Total working hours in certain cases were found exceeding (i.e. 48 hrs) the
limits given by the Factories Act.
viii. Mandatory registers (such as Register of advances, fines, loan) maintained
but not updated timely.
ix. Certain entries in the Identity cards of contract labors (as date of joining,)
were found missing. Further the new format as prescribed by the management
is not issued till date.
x. Wage slips in many cases are not given to the workers. Also in cases where
wage slips are given, some entries are missing. Further the new format is not
practiced till date.
xi. One of the major findings of the present study is lack of awareness in contract
labors about the EPF and ESI. In majority of the cases workers were not clear
about their contributions done by their employer.
xii. In many cases annual PF slips were not given to workers.
xiii. ESI number already issued but in many cases cards were not distributed to
workers.
xiv. Contractor workers interviewed were not clear about the PF withdrawal
procedures.

Page 74 of 93
xv. Also none of the contractors were found to put Abstract Display at their work-
site which is mandatory also according to the rules of Contract Labor Act.
xvi. There are no grievance redress mechanisms for contract labors.
xvii. Local PF codes not taken by the contractors till date.


Further, in our study we have also observed some of the good practices in the
organization. Some of the practices worth mentioning are-
i. Equal employment opportunity given to the employees.
ii. No discrimination in the wage structure of male and female workers.
iii. Healthy working environment ensured from the following of ISO: 14001
standards.
iv. Timely payment of wages.
v. Well equipped Clinic, First-Aid facilities provided for the permanent as well
as contract labors in the campus.
vi. Ensuring EPF & ESI deduction of every workman of contractor from the day
one of their work.
vii. Drinking water tapings provided abundantly in the organization campus.

















Page 75 of 93








CHAPTER- 7
SUGGESTIONS AND
RECOMMENDATIONS


















Page 76 of 93
SUGGESTION & RECOMMENDATIONS-

This study has attempted to situate contractor-labor interaction in the wider context of
flexible production in developing countries. The specific case of Tata Motors Limited,
an Indian company sheds light on contractor-labor interactions and the results on the
working and living conditions of the workforce. In line with the general picture, there
are violations of existing labor laws pertaining to hours of work, welfare measures,
payment of wages etc. To resolve some of the problems of our findings, we suggest
few steps as mentioned here-
i. Awareness about the benefits of being covered under the ESI/EPF/Gratuity
/Bonus scheme should be given to contract labors.
ii. Proper knowledge about the PF withdrawal procedures need to be given.
iii. Service certificate to be given to contract labor.
iv. Provision for Rest Rooms should be made. Also spittoons need to be provided
in the campus.
v. Complaint Register to address grievances of the contract labors should be
maintained by each contractor and should be produced on demand.
vi. Proper office space to be given to contractors, preferentially at a common
place, so that it is easy for the representative of principal employer to monitor
them collectively.
vii. Ensuring that the various documents and registers are produced on demand.
viii. Frequent audit by the various IR persons of their allocated contractors.
ix. Leaves/Holidays to be given to contract labor as per the rules of the Contract
Labor Act.
x. Proper induction regarding basics of safety, etc to contract labors at the time of
joining.
xi. Abstract display to be put in work-site/contractor offices.
xii. In case of buses used in transportation, shed to be provided for the
convenience of employees.
xiii. In case of violations for any of the procedures/systems the penalty devised to
be implemented strictly on the contractors
xiv. Full & final settlement of contractor to be done on leaving time.
xv. Procedure for Contractor Engagement should be:


Page 77 of 93



Through this study we have tried to put in front of the management some
ways/measures that can result in more cordial relations between the employer and
contractors, and employee - employer also ensuring that the minority stakeholders i.e.
contract labors are not deprived of their basic rights. However, we hope that this is an
opportunity to share at least some limited information to enlarge the basis of building
strategies in the future.





Invitation for
Quotations
Screening of
Quotations

Investigation
about
shortlisted
contractor

Price
Negotiation


Checking of
all legal
documents
Agreement
Finalization

Requisition
from user
Department


Shortlisting of
Contractor
through
Quotations
Final
Appointment


Page 78 of 93












CHAPTER- 8
ANNEXURE















Page 79 of 93
Certificate from Contractor for Compliances of Provisions of Various Central Labour
Enactments

Name:..
Name of
Contractor:

S.No. NAME OF ACT Yes No Remarks (If Non Compliance)
(1)
CONTRACT LABOUR (REGULATION &
ABOLITION) ACT, 1970

Applicability: Every estab. Employing 20 or more
workmen
(a)
Each contractor employing more than 20
workmen is having a valid licence for No.of
persons actually emloyed at works
(b) Display an abstract of the Act in English & Hindi
(c) Display notices showing in English & Hindi
Rate of Wages
Hours of work
Wages period
Date of payment of wages
Names & address of the Inspector
Date of payment unpaid of wages
(d)
Returns, forms, records to be maintained &
submitted to the Authorities

Form-9 Register of workmen employed by
Contractor

Form-10 (Employment card) being given by the
Contractor

Form-11 (Service Certificate) being given by the
Contractor (only leaving cases)

Form-12 being maintained by the Contractor-
Muster Rolls (Register of Contractors)

Wage Register in Form-13 being maintained by
the Contractors

Form-14 (Register of Wage-cum-Muster Roll)
being maintained by the contractor-15 days wage
period
Wage Slip being given by the Contractor

Form -16 being maintained by the Contractor -
Register of deductions

Form -17 being maintained by the Contractor -
Register of fines

Form -18 being maintained by the Contractor -
Register of advances

Form -19 being maintained by the Contractor -
Register of overtime

Page 80 of 93

Form 20-Half yearly retrurn is being sent by the
contractor-Details of workman & compliances of
provisions laid down.
f (Welfare Facilities)

Arrangement of hygienic & clean drinking water
at sites

Provisions of urinals/toilets at each site & to keep
hygienic clean.

No workers less than age of 18 yrs is engaged at
site
No female worker is employed after 7 pm at site

First aid box with necessary medicines kept at the
site

Canteen where more than 100 workers are
ordinarily employed
Rest room provided
(2) MINIMUM WAGES ACT,1948

Applicability:persons employed in schedule
employment on specified class of work
All group activities are covered under the Act
(a)
Payment of minimum wages by the contractor as
per notification issued by the Government
Authorities
(b) Display and Abstract of the Act
(3)
EMPLOYEE STATE INSURANCE ACT
1948(to fill only if applicable)

Applicability:factories/shops employing 20 or
more eligible persons with
basic,HRA,conveyance etc,not more than Rs
15000
(a)
Contributions payable to be deposited ESI
Authorities latest by 21st of following month
(b)
Returns,forms,records to be maintained &
submitted to the authorities

Form 01 Registration of factories/establishments
to be sent in time(for code no.)

Code number alloted and being entered all
documents prepared & completed under the Act

Form 01(declaration form on joining) is being
sent to Authorities witihin time (online)

Form 3(return of declaration form)to be sent
within time(online)

Identity card being received by the authority &
distributed to employees

form 7(Register of employee )is being maintained
(online)
Accident book is maintained in form 15 (online)

Accident report on form 16 is being sent to ESI
local office & dispensary(online)

Page 81 of 93

Form -5(Return of contribution )is being
submitted within time(online)
Inspection book is maintained
(4)
EMPLOYEES PROVIDENT FUNDS &
MISCELLANEOUS PROVISIONS ACT 1952

Applicability -applies to a factors or estab
employing 20 or more employees either directly
ot through the contractor
(a)
Contractor has been allotted PF code number
from PF Authorities
(b) Deposit of deductions by 15th of each month

Returns,forms,records to be maintained &
submitted to the authorities

Form 2-nomination & declaration form to be
submitted for new joinees
Form 3a-contribution card return to be submitted

Form 5-Return of employees qualifying for
membership
Form 6-Annual statement of contribution
Form 10-return of members leaving service

Form 11-Declaration by the person taking up
employment in an estab.
Form 12 A-statement of contributions
(D)
Inspection book maintained for observations of
the inspector
(5) PAYMENT OF WAGES ACT,1936

Applicability:Applies to factories,industrial
estab,construction,maintenance etc
(a) Payment of wages by 7th of each month
(b)
Signature of P&A staff certifying the amount in
wage register
Payment of overtime as per Act
(d)
Abstract of the Act & Rules in English & Hindi
displayed

Returns,forms,records to be maintained &
submitted to the authorities
Form I Register of fines

Form II Register of deductions for damage and
loss
Form III Register of advance
Wage slip issued
(6)
SHOPS & ESTAB ACT & THE RULES OF
THE STATE






Page 82 of 93
ANNEXURES

AGREEMENT BETWEEN CONTRACTOR AND PRINCIPAL EMPLOYER


This Agreement is made onday of . 20at Pantnagar

BETWEEN

THE MANAGEMENT of TATA MOTORS LIMITED, PANTNAGAR through its
authorized signatory (Hereinafter referred as party of first Part)

AND

M/s.........through its proprietor
Shri (Hereinafter referred to as The Contractor), party
of the Second Part.

WHEREAS the party on the first part requires the services of an expert contractor;

AND WHEREAS the party of the Second Part has approached the party of the First
Part and offered its services for the purpose on the assurance that it possess the
equipment expertise, manpower skill and facilities to provide high quality
services.

NOW THEREFORE THIS AGREEMENT WITNESSETH AS FOLLOWS:

1. The first party by means of these presents allows the Contractor to perform
and execute all services in respect of the areas specified in Annexure A to this
Agreement. The specified area may be increased or decreased from time to time at
the discretion of the party of the first part, whereupon, the Contractor shall
proportionately increase or decrease, as the case may be, the work force and
equipment employed on the basis of the present standard.

2. The Contractor by means of this Agreement agrees to execute, fulfill and
discharge the obligations and perform the services, hereinafter provided in the manner
hereinafter appearing. For the service rendered as per this Agreement the party of the

Page 83 of 93
first part shall pay to the Contractor at the rates mutually agreed upon from time to
time in writing. The total manpower at present for the performance of the described
jobs to the Contractors. The payment agreed to be made for performance of the tasks
assigned to the Contractor is Rs... per month. The amount includes all legal
obligations besides services charges. The Contractor shall submit its bill in respect of
house keeping services provided during a month immediately after the close of the
month. After verification of the correctness of the bill, the party of the First Part will
make payment to the Contractor by means of an Account Payee cheque after
deducting income-tax as provided for under the Income Tax Act 1961.

The Management will decide the extra number of workers to be engaged for
execution of work of any given point of time and for the same proportionate extra
amount shall be paid to the contractor. The Management also reserves the right to
reduce the number of persons at any given point of time by giving seven days clear
notice and in that event, the contract amount shall be stand reduced proportionately.

3. The Contractor will furnish Rs. 1000/- per labour as Security in cash Rs.
or by Demand Draft for the amount agreed upon for due performance of this
licence. In the event of any breach, violation or contravention of any of the terms &
conditions herein contained by the Licensee, the said security deposit shall be
forfeited.

4. The Contractor undertakes at all time to deploy the requisite manpower and
equipment necessary to provide efficient hygienic and quality, house keeping
services. For this purpose, the Contractor shall use mechanical devices to the
maximum extent possible.

5. The Contractor shall be responsible for the upkeep and safe custody of all the
fittings and fixtures .The Contractor shall maintain proper records of such stores and
shall be liable to make good may loss of the said stores or any loss on account of
damage to the furniture or fixtures if it occurs through negligence on its part or its
employees.


Page 84 of 93
6. The Contractor shall be bound to perform the assigned jobs even though the
same may not have specifically been included in the schedule of services. The
charges, if any, for these extra services, shall be settled mutually.

7. The parties hereto shall determine by mutual agreement the number of persons
to be engaged by the Contractor for effective discharge of its obligations under this
Agreement.

8. The Contractor shall be solely responsible for the acts of omission and
commission by the persons engaged by it in the discharge of its obligations under this
Agreement. For this purpose the Contractor shall maintain proper records and
accounts and submit all statutory return to the respective authorities in respect of the
persons employed by it.

9. The Contractor shall be responsible for due compliance with all statutory
provisions including those relating to Employees Provident Fund and miscellaneous
Provision Act, 1952, Employees State Insurance Act, 1948, Minimum Wages Act,
1948, Bonus, Gratuity Act, 1972 etc. and all other laws and rules applicable to it in
respect of the persons engaged by it either independently or by reasons of their
working in the premises of the specified area. The Contractor shall provide the code
number of registration allotted to it by the Regional Provident Fund Commissioner
and the Regional Director of Employees State Insurance for purposes of Provident
Fund deductions and ESI benefits. Copies of such certificates and the names of
employees engaged from time to time shall be furnished by the Contractor to the party
of the first part promptly. Challans for payment of statutory dues under the various
enactments other than income tax and sales tax shall be produced in original, within
three days of payment for the perusal and satisfaction of the party of the first part
together with a copy of the same for its record. No claim relating to any person (s)
employed/engaged by the Contractor shall be entertained or lie against the first party.
If there is any claim against the first party which it is bound to meet and discharge by
reason of any statutory obligation or dictates of law due to the fact of the concerned
employee (s) working in the premises of the first party, the Contractor shall be
responsible to fully reimburse and compensate the party of the first part and on failure
to do so be bound to face proceedings on that account.

Page 85 of 93

10. The Contractor shall fill and get signed, the Form 19, 10C immediately after
an employees leaves and shall send it for further process after 2 months. He shall also
prepare MIS of such cases sent for clearance or those which are cleared.

11. The Contractor shall pay its employees/persons engaged by it the wages which
shall not be less the minimum wages fixed by the Government and as revised from
time to time by the Govt. It shall also give such persons all benefits provided for
under any law for the time being in force. The party of the first part shall be at liberty
to satisfy themselves regarding compliance of the statutory requirements by the
Contractor. In case the Contractor does not pay the minimum wages to any person (s)
employed/engaged by it or violates any labour, industrial or other laws applicable to
it, alone shall be responsible for the consequences including for prosecutions, if any,
and the party of the first part shall have nothing to do with it.

12. Within fifteen days of the commencement of this Agreement the Contractor
shall provide on its own cotton uniforms, name plates, safety shoes, gloves, helmets
etc. to its employees/persons engaged by it for performing maintenance and
housekeeping jobs in the establishment of the First party. It shall be the responsibility
of the Contractor to ensure that while on duty such persons are always smartly attired
in their uniforms.

13. The persons engaged by the Contractor for fulfillment of its obligations under
this Agreement shall in no case be entitled to any benefit, monetary or otherwise
which may permissible to the employees of the First party nor would they be entitled
to raise any dispute, demand or claim in this regard or otherwise against the party of
the first part.

14. The Contractor shall employ/engage supervisor (s) to coordinate, check and
effectively monitor and control the quantum and quality of work performed by
persons employed/engaged by it. Such supervisor / agent /officer of the Contractor
shall be available at all reasonable times for ensuring that any defects pointed out by
or on behalf of the party of the first part are rectified immediately. The Contractor
shall send a daily report to the designate officer of the party of the first part and shall

Page 86 of 93
note the comments and remarks of the designated officer for immediate action and
compliance.

15. The Contractor shall be responsible for all injury and accident to persons
employed by it and for damage to the fittings, fixtures and equipment etc. of the First
party arising due to negligence on the part of the Contractor or its employees.

16. The Contractor shall display a duty roster of its employees deployed at various
locations on the Notice Board of the concerned Department of the and any employee
on leave and the substitute provided may be shown in the duty roster also. Such duty
roster shall be subject to random checks by the designated officers of the First party.

17. The Contractor shall issue photo identity card to all its employees bearing their
individual photograph, P.F., ESI, D.O.B, D.O.J, Fathers name & Address within
seven days from the date of signing of this Agreement, failing which the party of the
First Part issue the identity card to the employee concerned of the Contractor and the
party of the First Party shall have the right to deduct an amount equivalent to the cost
of identity card from the monthly bill of the Contractor

18. The Contractor shall maintain discipline amongst its employees and shall be
responsible for the conduct and behavior of its employee.

19. The Contractor can appoint any sub-contractor to carry out any obligations
under the contract.

20. The Contractor, shall be at its own cost, take necessary insurance cover in
respect of its employees employed / to employed or engaged in connection with
rendering of the aforesaid services to the party of the First Part.

21. The Contractor must obtain a valid license issued by the competent designated
statutory authority, under the Contract Labour (R&A) Act and the Rules framed there
under.


Page 87 of 93
22. The Contractor would also be required to fulfill the terms and conditions of
Agreement that may be entered into by it with the authorized representatives of its
workers.

23. That this Agreement along with its Schedule is the final document and it
supersedes all earlier papers letters, correspondence, it nay etc.

24. The Contractor shall be liable for any violation of the appropriate provisions
as applicable and will pay the penalty and the management will not be liable. The
contractor shall indemnify the first party against all the claims raised against the first
party with regard to the services being rendered by the contractor.

25. The employee as engaged by the Contractor will be solely responsible for
meticulous compliance of terms and conditions of the agreement and will be working
under the control and supervision of the Contractor. Be it made clear that by this
agreement, no relationship will come into existence between the employee engaged
through the Contractor and the management.
26. The contents of the Agreement have been read to the party of the First Part
and Second Part and they have fully understood the same.

27. This agreement shall take effect on the . and shall be in force
for a period of One year in the first instance. It may be renewed by mutual consent of
the parties hereto for such period as may be determined. The Agreement can be
terminated by either party on giving two months notice in writing to the other.
However, in case of any breach of the Agreement by the Contractor, the first shall
have the right to terminate it forthwith without any notice.

28. In case of any dispute relating to the interpretation or observance of this
Agreement, the same shall be referred to an arbitrator to be appointed by the parties
mutually. The decision of such an arbitrator in the matter shall be final and binding
upon both the parties. The proceedings will be governed by the Indian Arbitration
Act, 1940 and the Rules made there under.


Page 88 of 93
IN WITNESS WHEREOF the parties hereto have set their hands to this Agreement in
the presence of witnesses:


WITNESSES:

1. PARTY OF THE FIRST
PART

2.

PARTY OF THE SECOND
PART





Party of the 1
st
Part


Party of the 2
nd
Part














Page 89 of 93
Form V

FORM OF CERTIFICATE BY PRINCIPAL EMPLOYER,l


Certified that I have engaged the applicant M/s. .., as a
contractor in my establishment. I undertake to be bound by all the provisions of the
Contract Labour (Regulation and Abolition) Act 1970 and the Contract Labour
(Regulation and Abolition) Central Rules 1971, in so far as the provisions are
applicable to me in respect of the employment of contract labour by the applicant in
my establishment.



Place: Pantnagar
Date SIGNATURE OF PRINCIPLE
EMPLOYER


TATA
MOTORS LTD.














Page 90 of 93


STATUTORY RECORDS AND FORMS AS PER CENTRAL RULES:

SL.NO. REGISTER / FORM NO. DESCRIPTION

01 Form I (See Rule 17 (1) Registration form
02 From II (See Rule 18(1) Certificate of Registration
03 Form III (See Rule 18 (3) Register of Establishment
04 Form IV (See Rule 21 (1) Application for licence
05 Form V (See Rule 21 (2) Form of Certificate by Principal
Employer
06 Form VA (See Rule 24(1-A) Adjustment of Security Deposit
07 Form VI (See Rule 25 (1) Licence
08 Form VIA (See Rule 25 (2) Notice of
Commencement/Completion of work
09 Form VIB (See Rule 81 (3) Notice of
Commencement/Completion of work
10 Form VII (See Rule 29 (2) Application for Renewal of
Licence
11 Form VIII (See Rule 32(2) Application for Temporary
Registration
12 Form- IX (See Rule 32(3) Temporary Certificate of
Registration
13 Form X (See Rule 32 (2) Application for Temporary
Licence
14 Forms XI (See Rule 74) Register of Contractors
15 Form- XIII (See Rule 75) Register of workmen employed
by contractor
16 Form XIV (See Rule 76) Employment Card
17 Form XV (See Rule 77) Service Certificate
18 Form XVI (See Rule 78(1) Muster Roll
19 Form XVII (See Rule 78 (1) Register of Wages


Page 91 of 93
FORM XIX
Wage Slip

Name and Address of Contractor
Nature and location of work
Name and Fathers/Husbands name of the workman .
For the Week/Fortnight/Month ending .

1. No. of days worked
2. No. of units worked in case of piece-rate workers
3. Rate of daily wages/piece-rate
4. Amount of overtime wages
5. Gross wages payable .
6. Deductions, if any.
7. Net amount of wages paid ..


I nitials of the Contractor or his representative
















Page 92 of 93








CHAPTER- 9
BIBLIOGRAPHY







Page 93 of 93
BIBLIOGRAPHY

Company Records
Website:-
www.tatamotors.com
www.answers.com
www.ask.com

Books :-
a) Practical Guide to Contract Labour (Regulation & Abolition) Act &
Rules by H.L. Kumar
b) Labour & Industrial Law by H.L. Kumar
c) Labour Problems & Remedies by H.L. Kumar
d) Labour Laws- Everybody should know by H.L. Kumar
e) Checklist - Obligations of Employers under Labour Laws by H.L.
Kumar
f) Practical Guide to Factories Act by H.L. Kumar