As the name suggests, Contract Labor Act represents a law regarding the benefits of an employee and the contractor. This law contains provisions to ensure that agency work is not abused and that the rights of workers stay well-protected. The law does not entirely prohibit subcontracting. It does restrict it in circumstances to any employee who has been hired through a contractor for a specific position and for a limited period of time to work. The laws mentioned here are not directly employed by companies and do not have a specific payroll.
Usually, companies hire contractors who hire these workers for various jobs small or big according to their qualifications. In order to prevent abuse of workers in all companies and to ensure a healthier working environment, the law was introduced. In addition to regulating social benefits, health, employment contract payments, it also contains detailed provisions for the registration of companies and licenses that ensure safe payment getaways for the employees.
Also, See: Employee Lifecycle
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