Difference between contract labour and outsourcing & term perennial and permanent under Contract Labour Act - India

To begin with pertained topic it can say that it is not the nomenclature of the term but the real intent to decide when it is a Contract Labour or outsourcing. It can also be said like contract labour reflect manpower where as outsourcing reflects the job or the activity.

Neither the term “Contract Labour” nor the term “outsourcing” has been defined under Contract Labour Act rather it has been defined about term “workman”. Hence, while discussing about term “Contract Labour” and “outsourcing”, the intention appears to be same. Term “outsourcing” has been used very intelligently to create confusion between the two.

Further the term “Contract Labour” applied to man power engaged by contractor to produce a given result for principal employer where this man power has no direct relationship of employer-employee with the principal employer. This includes the simple supply of manpower to principal employer by contractor where contractor is not involved in specified activity.

Now to explain about term “Outsourcing”, this describes more or less same meaning viz. of “contract labour”. This means that when an employer engages someone to deliver a specified result where employer is not involved with the man power engagement or supervision or control activity over such man power.

Now, we will discuss difference between terms “perennial” and “permanent” work under contract labour act.

 To begin with neither the term “perennial” nor the “permanent” has defined under the Contract Labour Act.

But, the word “perennial” has been used under sec. 10(2)(b) where it is said that if the work exists for sufficient duration will be considered as of “perennial” nature.

Further Act nowhere prohibits engagement of contract labour on any job or activity or service unless it is prohibited by the Appropriate Government under the provisions of the Act.

But in this regard only Andhra Pradesh State Government has given some clarity with amendment in said Act in the year 2003 stating about on which contract labour can be deployed.

I hope from above you will get some clarity on subject matter.

Namo…..

Regards,

Girish Jayram Vivalkar



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