Hr NewsStatutory Compliance

Wait for legal status may get longer for contract workers

Source | The Economic Times : By Yogima Sharma

NEW DELHI: The government is re-examining its earlier decision to grant legal status to contract workers by amending the Contract Labour Act, potentially delaying the process of formalisation of a large section of the country’s workforce.

The development is likely to hit contract workers, who are often deprived of any social security benefits, besides staffing firms that are facing immense regulatory hurdles, thus slowing down the process of enhancing ease of doing business in the country.

Wait for legal status may get longer for contract workers

“While the draft bill of 2015 has been put on hold, the ministry is evaluating options to regulate appointment of contract workers under one of the four codes now,” the official said, requesting anonymity.

Both the government and the corporate sector employ a large number of contract workers. Contract labour accounts for 55% of public sector jobs and 45% of those in the private sector.

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