The Indian Staffing Industry Calls for Amendments to the Contract Labour Act

January 11, 20178:30 am711 views

The Indian staffing industry is seeking amendments in the contract labour act and asking for lower tax deductions to promote growth of flexi-staff in the formal sector. With the government pushing for salary payment through banks, the Indian staffing federation expects increase in flow of flexi-staff workers.

Under the aegis of the Indian Staffing Federation, the industry is calling for a single license to operate the staffing business and just one return per license along with simplified documentation. This is in contrast to the complex and bureaucratic process that exists at the moment.

With India set to become the third-largest temporary staffing market in the world based on numbers with 2.9-million flexi-staff by 2018.  Being one of the key industries generating and mobilising jobs, the current policies do not recognise the industry.

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In a statement published in the Economic Times, Suchita Dutta, executive director, Indian Staffing Federation, said, “The government needs to bring in required amendments in [the] CLRA Act to protect the players working in [the] formal sector. The industry currently demands a license at state and national levels for the staffing companies to operate in the industry.”

“For the cause of employment generation, taxation should be on value added service fee/ service tax on our fees (value-added part) rather than on total value (pass through cost),” Dutta said. “Also, with immediate effect remittance of tax should be applicable upon receipt of payment rather than on accrual.”

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