Boss2966
Industrial Relations
Ssingh0287
Head Business Development

I have a case and need some expert advice at the earliest:-
1. Can a corporate organization show its house keeping manpower as a daily wage manpower where in employees are rotated among different companies by the contractor before the house keeping boys completes 240 working days.
2.Can one opt for ESI cover even for daily wage employees as long as they are working for 7 months at a site and 26 days monthly.I am asking this coz it makes sense to give them this benefit.
3. Any legal liabilities for showing these employees as daily wage employees even though they are taking home a higher take home than the minimum wages regular role employees.
My questions are a result of the situation where an end user/client is paying the contractor very less and wants to be compliant at the same time. Based on the top 3 questions can the contractor suggest that the manpower should be kept as daily wagers, payable at the end of each month and shall be rotated to a new client site by the service pro
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Q-1. Can a corporate organization show its house keeping manpower as a daily wage manpower where in employees are rotated among different companies by the contractor before the house keeping boys completes 240 working days.

A-1. Normally almost all the organisations are engaging the House keeping team through some Contractors and obviously the Contractors has to strictly follow all the Statutory Requirement. These are outsourced because there will not be any unhygienic condition in the Premises.

Q-2. Can one opt for ESI cover even for daily wage employees as long as they are working for 7 months at a site and 26 days monthly.I am asking this coz it makes sense to give them this benefit.

A-2. Obviously the Contractor has to opt for ESI Cover for all the workmen engaged by him even for 1 day. But if the worker left the contractor after doing the work for 2 months the contractor has to pay the ESI for minimum period of 6 months. If the contractor gets some assurance from the worker that he will work for some minimum duration, obviously the Contractor will not hesitate to opt for ESI to the worker.



Q-3. Any legal liabilities for showing these employees as daily wage employees even though they are taking home a higher take home than the minimum wages regular role employees.

A-3. There will not be any legal liabilities for showing these employees as daily wage workers even though they take more than the Minimum Wages. Because their work is such which requires to be paid more. (Cleaning the Toilet, Drain and Food Waste are normally others will hesitate to do but these team will take care of such activities, hence they must be paid more).



My Answers are a result of the situation where an end user/client is paying the contractor correctly with minimum wages+Compliance Charges (ESI+PF - Employer Share) + TDS + Contractor Profit, and wants to maintain the statutory compliance at the same time. Eventhough the service provider keep on rotating the manpower, the workers will be on the rolls of the Service Provider and not on the rolls of the Company. To avoid any future problem the Service Provider used to rotate the manpower from one organisation to another organisation frequently.
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