According to India’s leading business newspaper ‘The Mint’, India’s ministry of labour is planning to make the hiring of contract workers only through licensed agencies MANDATORY for private & government sectors. The ministry wants to ensure that all licensed staffing agencies deposit enough bank guarantees to safeguard workers in case a company closes down.
The report further states that the ministry has plans to ensure that manpower agencies are licenced either by the central government or a state government. In case a firm is supplying manpower to multiple companies in multiple states, it is required to take a central licence.
Ms Kanika Kohli, Vice President of Trendsetters Facilities & Technical Services (TFTS), largest outsourcers of specialized manpower and licensed labour to northern India “It is a good plan and I expect it will benefit the industry by improving the employment standards of temporary labours, as well as organizations, will get good quality service assurance that only a licensed agency is capable of providing. Also, the plan will improve the transparency in the hiring process of temporary labourers as the government too will be involved in the process at various levels.”