It is very sad but ubfortunately it is a fact. Contract labourers are the worst exploited lot in this country by all...be it Govt organisataions, or Private sector companies who claim to be world class organisations with ethical standing or mediocre companies
No notice pay, no leave, no benefits and no retrenchment compensation
I came across with a BPO who assigned certain jobs to a Corporate Contractor who in turn assigned to a small company who in turn assigned to an individual contractor. Just imagine 10% margin at every level and there is 30% margin available and that will be sufficient to erdicate certain woes of these contract labour
Legaly Mr Gadde is right. However one need not pay retrenchment if an employee is engaged for a specific period and thereafter his services are not required. Many of the contractors will menbtion this condition and renew his employment after some time and there is no need to pay retrenchment compensation I know some contractors even take resignation letters in advance
as a contractor if you want to some good for your workmen, I must appreciate you in this forum even for showing some interset in that direction
Best wishes