New Labour Codes : Impact of Outsourcing

New Labour Codes : Impact of Outsourcing
'Principal to principal' employment will accelerate the pace of industrial growth and will also increase the quantum of employees and will be more economical.

Since the labour laws have been very rigid and hostile for the employers to such an extent that howsoever, a ‘workman’ has been guilty of even grave and serious misconduct, the employer could not dispense with his services without holding a complicated enquiry. Hardly has there been any establishment that has not devised a means engaging contract labour because it is not only more efficient, economical but also contract-workers do not have job security as is enjoyed by the regular workers.

The new Labour Codes have already been enacted and are likely to be implemented shortly. The scope of the contract labour system will be permissible only in none core activities. Furthermore, in view of the amended definition of ’employer’ under section 2(u) of Occupational Safety, Health and Service Conditions Code 2020 states “a person who employs, whether directly or through any person…….” which means that even for the workers of the contractor, the principal employer and not the contractor will be the employer. Also, section 53 of the...

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H.L. Kumar

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July 2022 Issue

Building Better Work Culture -July 2022

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