Research proposal contract labour law sample work

DRAFT PROPOSAL Research Proposal Contract Labour Management in Manufacturing Industries in the state of West Bengal with reference to statutory compliance: An empirical Industrial study

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Table of Contents 1.0 Introduction ............................................................................................................................... 3 2.0 Background of the study ........................................................................................................... 4 2.1. The Contract Law Framework in India ................................................................................ 4 3.0 Statement of the problem .......................................................................................................... 5 4.0 Aim and Research Objectives of the study ............................................................................... 6 5.0 Literature Review...................................................................................................................... 6 6.0 Research Methodology ............................................................................................................. 9 7.0 Contribution of the research.................................................................................................... 11 8.0 Scope and delimitations of the study ...................................................................................... 12 9.0 Chapter Scheme: ..................................................................................................................... 12 References ..................................................................................................................................... 13

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1.0 Introduction This research attempts to empirically examine the extent to which the labour regulatory framework in India protects the interests of workers and trade unions at workplace level. The employment relations debate in India is largely centered on the regulation of labour markets and the role of actors within the existing regulatory framework, namely the State, trade unions and employers (Sharma, 2006). Thus, theoretically, this debate is rooted in the institutional approach to industrial relations. The growing interest in Indian employment relations is primarily sparked by the new economic policies of liberalisation, privatisation and globalisation, which the Government of India embarked upon since 1991(Agarwala et al., 2004; Frenkel & Kuruvilla, 2002; Hill, 2009; Papola et al., 2007). Following a serious balance of payment crisis in 1991, India embarked upon major economic reforms, consisting largely of a move from policies of import substitution to an export orientation. It is claimed that the deregulation of product and capital markets over the past decade has resulted in an impressive GDP growth rate of around 7% per annum and a healthy foreign exchange reserve of over US$ 270 billion (Panagariya, 2008; Banerjee, 2005; Jha, 2005; Jha & Golder, 2008; Desai, 2009; Saini, 2010; Sundar, 2010; Sundar, 2004). Further, the product and capital markets have been deregulated by the labours and (Banerjee, 2005; Jha, 2005; Jha & Golder, 2008; Desai, 2009; Saini, 2010; Sundar, 2010; Sundar, 2004; CII 2006), thus, regulatory framework in India remains archaic and in dire need of reform in order to make the country an attractive destination for private domestic and foreign investments (Carter , 2004).

The 2012–13 Global Competitiveness Index published by the World Economic Forum (WEF) has downgraded India by three places compared to its 2011 ranking to 59th place out of 144 countries, and the WEF‟s report has been particularly critical of inflexibilities in hiring and firing, redundancy costs and wage inflexibilities in the country. India is now poorly placed compared to other emerging economies such as South Africa, Brazil and China on its labour market efficiency. The 2013-2014 Global Competitiveness Index published by the World Economic Forum (WEF) in India has downgraded as 60th rank placed out of 144 countries this © 2017-2018 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ Your trusted mentor since 2001 I www.tutorindia.com UK: The Portergate, Ecclesall Road, Sheffield, S11 8NX I UK # +44-1143520021, Info@tutorsindia.com

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trend began in 2009. . On the other hand, the critics of labour market reforms argue that there is few evidence only suggests that the existing regulatory framework and especially contract labor

2.0 Background of the study 2.1. The Contract Law Framework in India There are about 400 million workers in the Indian labour market. Of these, around 93% are employed in the „informal‟ or unregistered sector of the economy (also referred to as the „unorganised sector‟). Only about 7% are employed in the registered sector enterprises operating in the formal sector of the economy. Some estimates suggest that within this regulated sector of the economy, about 60–70% of workers are employed as „contract workers‟ hired through labour contractors/agents with little or no legal protection (Saini, 2010). Recently, almost in all industries contract labour growth is increased in day-day employment especially in hazardous occupation its endangering their health and safety (ITEM, 2009). Thus effectively, the coverage of labour laws in India is restricted to only a small proportion of the entire workforce. (Papola et al., 2007) estimate only about 15% of the total workforce are covered under some provisions of the industrial relations and welfare laws in India.

Another important piece of labour legislation, which has been much debated in the posteconomic reforms era, is the Contract Labour (Regulation and Abolition) Act (herein referred as CLRA Act) 1970. This is primarily due to the significant rise in the number of contract or casual workers even in enterprises in the formal or „registered‟ sector of the economy and in the wider labour market (Dibyendu, 2014; Bhaumik, 2003). This law stipulates the tasks for which an employer can hire workers on short-term contracts. It prohibits employment of contract labour in core activities of the firm, which are carried out on a long-term and continuous basis. It also provides for the fair payment of wages to contract workers and stipulates supervision of wage payment by the principal employer. Furthermore, it requires the contractor/agent or, in some instances, the principal employer to provide for health and safety and welfare of the contract © 2017-2018 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ Your trusted mentor since 2001 I www.tutorindia.com UK: The Portergate, Ecclesall Road, Sheffield, S11 8NX I UK # +44-1143520021, Info@tutorsindia.com

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workers employed in the enterprise. There are some cross-references with the IDA 1947, where section 25B of the IDA states that if a worker has continuous service of 240 days (which includes contract workers), then that worker can claim permanency of employment which in turn confers upon him/her the statutory protections under various labor laws. Thus, the primary objective is to stop exploitation of contract labourers by contractors or establishment.

To compound the problem, the different local rules that domestic workers are subject to in their labour market engagements, such as work organizations, working conditions and wages.

The heterogeneity Uberoi and Chakrabarti (2004) and local variation make it difficult to arrive at general, abstract, or uniform legal categories and to add these problems, there is very little background literature or evidence based documentation to enable an understanding of how these complexities may be incorporated in the regulation of the working conditions for contract labours in India. It has been nearly 44 years since the C L (R&A) Act has come on the statute book. It is now high time to examine whether various judicial pronouncement on the provisions of the said Act have served the object and purpose, due to the pronouncement of the latest judgments on the Act, the question that arises is whether the pronouncement have virtually defeated the object and purpose.

3.0 Statement of the problem The proposal argues that regarding the reasons for the lack of governmental action on contract workers. It has been noticed that the contract labour has remained a disadvantaged section of the working class mainly due to lack of organizations structure and ignorance..Although various Committees and Commissions set up to look into the contract labour system laws and recommended its abolition. However, recognizing the need and inevitability of this system in the increasingly uncertain business environment, the Labour Investigation Committee in 1946, recommended the abolition of contract labour, wherever possible.. Based on this view, the Contract Labour (Regulation and Abolition) Act, was passed in 1970 where under this act, contract Labor has been banned in certain categories of work. In Š 2017-2018 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ Your trusted mentor since 2001 I www.tutorindia.com UK: The Portergate, Ecclesall Road, Sheffield, S11 8NX I UK # +44-1143520021, Info@tutorsindia.com

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West Bengal (Dibyendu, 2014), contract laborers are hired based on a flexibility largely supplied by the contractors. It is observed that intermediation is captured by the politically influenced group (i.e., the politically active state). From the above it is still not clear on the existing contract labour law to protect labour workers and the topic is largely unexplored. Hence, given this gap the following aims and objectives are proposed.

4.0 Aim and Research Objectives of the study The present study examined contract Labour, with special focus on CLRI act 1. To explore the present system of the contract Labor act to protect contract workers 2. To understand the mechanism and methodology of the implementation of the act 3. To assess the limitations of CLRI act in protecting employers and employees during working environment 4. To explore the various cases and courts decisions in respect of the implementation of the provision of the Act 5. To examine various stakeholders involved in the effective implementation of the ACT

Hypothesis H1: Contract labour, specifically CLRI act significantly protects contract workers in West Bengal

5.0 Literature Review These findings are similar to those reported by other researchers, such as Mathur (1991) and Sen Gupta and Sett (1992). They also report other ingenious ways in which employers try to exclude workers from statutory protection of IDA; for instance, re-designating a telephone operator to „communications officer‟ and an accounts clerk to „payroll executive Sen Gupta and Sett (1992) have collected primary data from workers in the manufacturing sector enterprises from six different states in India. They report that the liberalisation policies pursued by the © 2017-2018 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ Your trusted mentor since 2001 I www.tutorindia.com UK: The Portergate, Ecclesall Road, Sheffield, S11 8NX I UK # +44-1143520021, Info@tutorsindia.com

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Indian government have delivered an unfair deal to the workers in terms of their job security, wages and working conditions. Their work, however, is confined to the manufacturing sector and does not explain the impact of labour regulations on working conditions. Our research attempts to address this gap in the literature on labour market regulations in India by undertaking an extensive survey of workplace union activists of a large national trade union federation Meenakshi Rajeev (2009) did research on “Contract Labour Act in India”. The findings were that in India for a contract worker it is not only hard to prove his or her identity as worker under the labour law but employer employee relationship is also not easily to establish;. It is observed that collusive agreements between various agents often result in the exploitation of the contract labour. However, to be able to do this it is necessary to make the workers aware of their rights and responsibilities so that they are able to detect violation of laws.

Saini, Debi (2010) did research on “role of the contract worker”. The findings were that the rights conferred on the contract workers by the Constitution of India and various labour laws are poorly enforced. Since May 2007 the Indian Government has been talking to the need for inclusive growth mainly to counter act the above threats envisaged by the social scientists. It should be kept in mind that inclusive growth can be sustained only if it is built on the foundations of basic rights of the working people, especially the powerless people.

Prakash (2008) did research on “contract labour act”. The findings were that the Act applies to every establishment in which 20 or more workmen are employed or were employed on any day on the preceding 12 months as contract labour and to every contractor who employs or who employed on any day of the preceding 12 months 20 or more workmen. The contractor is required to pay wages and a duty is cast on him to ensure disbursement of wages in the presence of the authorized representative of the Principal Employer. In case of failure on the part of the contractor to pay wages either in part or in full, the Principal Employer is liable to pay the same.

In case the contract labour performs same or similar kind of work as regular workmen, they will be entitled to the same wages and service conditions as regular workmen. Ashis, Pandey and Dhananjay (2004) did research on “economic & social issues relating to the contract workers”. © 2017-2018 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ Your trusted mentor since 2001 I www.tutorindia.com UK: The Portergate, Ecclesall Road, Sheffield, S11 8NX I UK # +44-1143520021, Info@tutorsindia.com

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The findings were that the Contract Workers (CWs) get minimum statutory wages with few instances where they receive higher wages for skilled work. Incidents of contractors deducting token money from CW's wages were reported from the cement and white goods companies.

However, they get better deals if they have collective bargaining strength. Illiteracy, unscrupulous contractors and hazardous working conditions impose serious safety concerns for them. Longer working hours and job insecurity are other factors that such workers face. There is no social security for them except ESI. A majority of them live in slums or rented hutments with poor civic amenities. Employers and contractors to some extent fulfill their economic and social needs.

Paras Jain (2005) did research on “facts of the contract labour (regulation& abolition) act1970”. The findings were that the object of the (Contract Labour Regulation and Abolition) Act, 1970 is to prevent exploitation of contract labour and also to introduce better conditions of work. Contract Labour differs from Direct Labour in terms of employment relationship with the establishment and method of wage payment. Contrac Labour by and large is not borne on pay roll nor is paid directly. The Contract Workmen are hired, supervised and remunerated by the Contractor, who in turn, is remunerated by the Establishment hiring the services of the Contractor.

Dhiraj Ramchandani (2006) did research on “actual position of the workers”. The findings were that the practice of employing contract labour is prevalent in most of the industries in different occupation including skilled and semi skilled jobs. A workman shall be deemed to be employed as contract labour when he is hired in connection with the work of an establishment by or through a contractor. The various studies conducted by commissions, committees and Ministry of Labour shows that the situation has always been exploitative. The government has taken various initiatives to improve the situation of the contract.

Kumari and Malhotra (2012) cross check whether the contract labours are facing same problems in different companies for their upcoming projects. Descriptive research is used for this purpose. The whole picture of Contract labour (regulation & abolition) act1970 is totally © 2017-2018 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ Your trusted mentor since 2001 I www.tutorindia.com UK: The Portergate, Ecclesall Road, Sheffield, S11 8NX I UK # +44-1143520021, Info@tutorsindia.com

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different where the organizations try to implement this act but due to carelessness of contractors and uneducated labour workers they are not able to use this act fully. One rule has been issued by the Chattisgarh state that now banks will give the payment to the labour workers it means that contractors has to submit their cheques in the bank for the payments of the labour workers or open a different account for the labour worker from which they can take their payment on time positively but it is not being implemented by the BALCO OR LANCO‟S contractors or even labour workers are not aware of this new rule.

India, in 2001 the Supreme Court of India in another public sector dispute (Steel Authority of India v National Union Waterfront Workers, 2001) ruled that the Contract Labour Act does not provide for the automatic absorption of contract workers as permanent workers if the enterprise decides to abolish contract labour system(Cox , 2008). By delivering such judgment, the Supreme Court has over-ruled its own previous pro-worker judgments that required employers to absorb permanently contract and temporary workers who fulfilled the necessary conditions of 240 days of continuous service. The repercussions of these anti-labour judgments have been felt widely across public and private sector enterprises in India, affecting the working conditions and livelihood of thousands of workers (Dhavan, 2006; Singh, 2008; Ray, 2008). On 23 February 2011, the INTUC along with some other national trade union federations organized a „Workers March to the Parliament‟ to register their protest against the violation of labour laws by employers, increased use of contract labour on exploitative terms and privatization policies pursued by the government, amongst other things Badigannavar and Kelly, (2013).

6.0 Research Methodology Research design: The research design was used Descriptive Research Design. The key to good descriptive research is knowing exactly what you want to measure and selecting to survey method in which every respondent is willing to cooperate and capable of giving you complete and accurate information. The quantitative approach is used for empirical evaluation of the © 2017-2018 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ Your trusted mentor since 2001 I www.tutorindia.com UK: The Portergate, Ecclesall Road, Sheffield, S11 8NX I UK # +44-1143520021, Info@tutorsindia.com

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variables and also identifying the properties and linkage between them. The mathematical hypotheses were used as well models for this kind of research. The proposed hypotheses were performed in order to find out the relationship between the empirical observations and the mathematical formulation from the interpretation Sampling: Stratified Sampling. Population is divided into homogeneous (identical) subgroups and then taking a simple sample in each subgroup. It assures that you will be able to represent not only the overall population but also the key sub-groups of the population.

Sample Size: The sample size XXX in which XX were labor workers XXX were contractors The present study deals with the gathering of primary data which is used for quantitative analysis. The information becomes easily accessible to the applicant by the use of primary data collection. This is done in order to reduce an error and author‟s favoritism. It also gives instant data for evaluation.

Primary data collection methods of this thesis: The survey method was also used in the current research in order to gather the primary data. To find the motivational feature, they use the structured closed ended questionnaire including the customers‟ requirements and limitations. From this method, the author can access to several applicants in the least amount of time duration8. The questionnaire was developed in such a way that, the clients were completing the task at short time interval. In addition to questions on the demographic profile of the respondent and the workplace, we sought information on key areas covered by the main industrial relations laws such as employment protection, industrial disputes, dispute resolutions and unfair labour practices. In primary data questionnaire is used & in secondary data Published material, computerized data bases, Syndicated services in which telephonic interviews and personal interview method was used.

For the purpose of data collection two schedules (Annexure- II) were used: These are I) Principal employer schedule and II) Contractor schedule. In the principal employer schedule the information was collected from principal employer about employment of direct and contract © 2017-2018 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ Your trusted mentor since 2001 I www.tutorindia.com UK: The Portergate, Ecclesall Road, Sheffield, S11 8NX I UK # +44-1143520021, Info@tutorsindia.com

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workers, details of contractor-wise employment, jobs performed by the contract workers, reasons for employing contract labour on perennial and non perennial jobs etc. In this schedule, data regarding working conditions of direct labour was also collected in respect of the jobs/occupations in which both categories of workers (direct and contract) were found to be working in the same unit. In Schedule II pertaining to Contactor, information was collected from contractors on nature of jobs undertaken by them, employment of contract workers, method of their recruitment, working conditions, wages and allowances, fines & deductions, payment of bonus and other welfare facilities, social security, industrial relations etc. Offices of the trade unions, office of the Assistant labour Commissioners, their residences. The other constituents related to the Act were also contacted and interviewed with help of different checklists.

Secondary data was collected such as discussion in the Lok Sabha and since pilot study was related to the West Bengal State, Labour policy of the state was also studied.

7.0 Contribution of the research Firstly, the study would throw light on the artificial distinction that is the root cause between regular employee and the contract labour in any establishment.

Secondly, the study also answers the practices to circumvent the regulations and deprive the benefits available to the contract workers.

The study would leads to an inference that a symbiotic relationship has to be established between the employer - management including the principal employer and the contract labour balancing the right and obligation of both the parties.

Thirdly, contract labour system shall continue to exist because of socio economic necessity, therefore instead of abolition, if all stakeholders take a pragmatic approach, the objective and mission will be fulfilled.

Finally, no doubt the growth of the industry/economy is paramount consideration of the state; the human side of the labour force has not been addressed by all concern. Therefore it is a

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vinculum juries to address the productivity and welfare of the vast labour force at the same time so that the purpose object of the law is achieved.

8.0 Scope and delimitations of the study The scope of the study is limited to the Industrial zone of the West Bengal, Kolkata areas.

Further, the survey would be restricted to only contract workers and their employers for whom the act is applicable. In addition, only workers from manufacturing Industries are selected and contract labor is a vast topic with several regulations, the study specifically attempted to look at CLRA regulations. The study is cross sectional and quantitative study design. Hence generalizability of the findings will not be applicable to other states of India

9.0 Chapter Scheme: The overall structure of the current research paper is presented below: Chapter One – Introduction – This chapter presents the fundamental information regarding the current research topic and introduces the basic concepts and also lays the foundation on which the research is built up on. It also presents the background of the research and also identifies the main objectives and goals of the project. Finally the research questions that are part of the objectives will also be presented.

Chapter Two – Literature Review – The literature review section generally provides a collection of literatures that have already been published and that have been done on a similar research area. Thus the review of literature provides the necessary secondary research in relation to the study. A literature review presents a theoretical perspective and is important in answering the research questions.

Chapter Three – Research Methodology – This chapter will provide a review of all the methods that would be applied and used in the study while carrying out the necessary research. © 2017-2018 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ Your trusted mentor since 2001 I www.tutorindia.com UK: The Portergate, Ecclesall Road, Sheffield, S11 8NX I UK # +44-1143520021, Info@tutorsindia.com

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Typically, research is of two types – Qualitative or Quantitative. This chapter will present all the various methodologies used along with the justification for using them in the current study.

Chapter IV: Profile of West Bengal: Chapter Five – Results and discussion – The fourth chapter will present the factual analysis of all the data that has been collected. This chapter will present the results of the data that has been gathered, it will present the analysis of the data, however it will not form a conclusion. The discussion also would be a part of this chapter and the analysis of the information collected will be part of this chapter. The discussion would also involve analysis the data in relation to the research questions that have been set.

Chapter Six – Conclusion – This chapter concludes the final points in relation to the research questions. It speaks to the point and gives the final answer to the research problem.

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Carter, M. (2004) „Improving the Investment Climate: Challenges for India‟, The World Bank Group, Available at: http://go.worldbank.org/RT XXIY5G50.

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