Thursday, September 15, 2005

A well-known offshoring vendor is in trouble with a Labor Commissioner because it did not obtain licensing required for hiring contract labor. The Contract Labour (Regulation and Abolition) Act, 1970 has to be taken seriously. This is one of the most forgotten laws in the small and mid-sized Indian software community. Many Indian software companies “employ” people as contractors.

The Government explains this law here:
An extract:-
"Every contractor is required to obtain a licence and not to undertake or execute any work through contract labour except under and in accordance with the licence issued in that behalf by the licensing officer. The licence granted is subject to such conditions as to hours of work, fixation of wages and other essential amenities in respect of contract labour as laid down in the rules."

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