Webinar on HR Challenges under the Labour Codes

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Event Details

Webinar on HR Challenges under the Labour Codes - Mar 27, 2021

1)  Engagement of contract labour in Core Activities

2)  Appointment of Fixed Term Employees on work of a perennial nature

Time : 2.00 pm to 5.00 pm


Introduction :

The Four Labour Codes, recently passed by both Houses of Parliament, replace 29 labour statutes which is indeed a major overhaul.

1. One of the major changes that would have a significant impact on industry would be Section 57 of the OSH Code which prohibits employment of contract labour in core activities of an establishment. Section 57 (1) of the OSH Code reads as under:


“Notwithstanding anything contained in this Part, employment of contract labour in core activities of any establishment is prohibited”

Section 2(p) of the said Code defines ‘core activity’ to mean any activity for which the establishment is set up and includes any activity which is essential or necessary to such activity. The said definition however excludes certain activities such as housekeeping, maintenance, gardening, transport, etc provided that the establishment is not set up for such activity.


Unlike Section 10 of the Contract Labour (Regulation & Abolition) Act 1970 which provided for abolition of contract labour subject to the conditions laid down therein and after consultation with the Advisory Board, the OSH Code straightaway prohibits employment of contract labour in core activities.


Industries have been engaging contract labour in core activities such as in production, packing, data entry, back office operations, marketing, etc. What would be the legal implications of Section 57 of the Code on such industries?


Contractors whose main activities are House-keeping, security, transport etc also engage sub-contractors. Would the Proviso to Section 2(p) read with Section 57 prohibit Contractors from engaging sub-contractors?


The definition of a ‘workman’ under the Contract Labour (Regulation & Abolition) Act 1970 excluded an ‘out worker’ and working on premises which are not under the control & management of the Principal Employer. There is no such exclusion in the definition of a ‘worker’ under the new code. Would ‘toll manufacturing operations’ or outsourcing of operations to a third party on the premises of such a third party be now covered under the provisions governing contract labour?


The definition of ‘contract labour’ under the OSH Code includes ‘Inter State Migrant Labour’. The Code imposes additional obligations on the Principal Employer as well as the Contractor qua Inter State Migrant Labour.

2. The Industrial Relations Code as well as the Code on Wages classifies ‘Fixed Term Appointments’. There are catenas of rulings where employment of workmen on fixed term, where the work is of an ongoing nature, was termed as an unfair labour practice.

a.  Do the new Codes permit employment on Fixed Term even where work is of a perennial nature?

b.  Would such appointments be still classified as unfair labour practices?

c.  Can an Employer have only Fixed Term employees at all levels?

d.  Can an Employer replace the FTE’s with a new set of FTE’s where work is of an ongoing nature?

Employers and especially the HR leaders and Managers are thus required to acquaint themselves with the new provisions on engaging of contract labour and Fixed Term employees for proper implementation and to avoid stringent penalties including claims for permanency for having engaged contract labour where it is prohibited under the new Code.


The participants will be acquainted with the important provisions of the Codes with clarifications on the myriad aspects of implementation which can well be an arduous task. 

Speakers :

Mr. Naresh Pinniseti, Director - Corporate Affairs - Deepak Fertilisers & Chemicals Ltd.

Mr. Lancy Dsouza, Advocate High Court & Legal Advisor - BCCI

Ms. Deepika Agarwal, Advocate High Court & Sr Legal Associate - BCCI

Webinar details will be provided to the participants, after registration.


Chetna Surti

Email :  employmentlawadvisory@bombaychamber.com / hr1@bombaychamber.com

Tel : 4910 0228, 98926 86418

Participation Fee :   
Members  Rs. 1000 + 18% GST  
Non-Members  Rs. 1200 + 18% GST 

Bank Details for NEFT

Account No.




Bank Name

State Bank of India

Branch Address

Mumbai Main Branch

Cheque /Demand Draft should be drawn in favor of “BOMBAY CHAMBER OF COMMERCE AND INDUSTRY”.


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