The Hindu Business Line : IT sector to come under Contract Labour Act

SERVICES in the information technology (IT) and IT-related sectors are being brought under the ambit of the Contract Labour Act along with 12 other sectors identified by the Government for this purpose.

Currently IT and related sectors employ around six lakh white-collar workers in India and is expected to grow manifold over the next few years. It is also being proposed that wages for the contract workers may be around 25 per cent more than wages for regular worker due to the fact that there are no social security benefits for contract jobs.

The Ministry of Labour, in consultation with other Ministries, have identified 13 non-core sectors where the contract labour shall be introduced in a phased manner. For this, the existing Contract Labour (Regulation and Abolition) Act is being amended and renamed as Contract Labour (Regulation of Employment and Conditions of Service) Act, official sources said.

Apart from IT and IT-related services sector, the other sectors identified for this include sweeping, cleaning, dusting and collection and disposal of all kinds of wastes, which will go a long way in reducing the long term liabilities of the municipal authorities all around the country.

Also included are security services, courier services, maintenance, service and repair of equipment, machines and plants of all kinds, loading and unloading of materials as well as construction and maintenance of buildings, roads and bridges.

The other sectors identified by the Government for introducing contract labour are running canteen services, house keeping and laundry services, running of hospitals, education and training institutions, guest houses, clubs and ambulance services where these are in the nature of support services of an establishment. All business units located in special economic zones (SEZ) too will be able to employ contract workers.

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