Hiring of contract labour is prevalent in India, whether in the manufacturing or non-manufacturing space. With the enforcement of the new Labour Codes, there is a fundamental shift in contract labour laws in India. Our Partner, Atul Gupta, discusses two key changes in this context.
First, he examines how the new Labour Codes explicitly prohibit the hiring of contract labour in core activities of an organisation. He explains how this contrasts with the Contract Labour Act, which required State governments to issue notifications to define what is prohibited.
The second issue Atul talks about is the change to the definition of contract labour. He explains how the new definition excludes employees on the permanent payroll of the vendor and highlights the impact this will have on hiring contract labour going forward.
He concludes by highlighting the immediate need for contract labour compliance assessment for organisations to ensure that they are not in violation of the Labour Codes.
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