tata steel project on "contract labour management"

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CONTRACT LABOUR MANAGEMENT AT TATA
STEEL
Internship report submitted
In partial fulfillment of the requirement for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
By
Student Name
ARCHANA KUMARI
14MBA 004
(BATCH-2014-2016)
MBA
Under the esteemed guidance of
Dr. V Rama Devi
Dept. of Management
Sikkim University
6th mile, Tadong, Gangtok, Sikkim – 737102
September 2015

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DECLARATION
I, ARCHANA KUMARI student of Sikkim University Id. No: 14MBA004 hereby declare that
the Internship Report titled” CONTRACT LABOUR MANAGEMENT
AT TATA STEEL” is submitted by me in partial fulfillment of the requirement for
the award of the degree of Master of Business Administration under the guidance of
I confirm that this Report has not been submitted to any other University or Institution in full or
in part for the award of any Degree or Diploma.
Place: JAMSHEDPUR TATA STEEL
Date: 26TH june to 31stjuly Signature
ARCHANA KUMARI

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CERTIFICATE FROM THE COMPANY

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CERTIFICATE
This is to certify that archana kumara , university Id.No.14MBA004 worked under my
supervision for the Internship Report titled “ contract labour management at tata steel“ during the
academic year 2014-2016 in partial fulfillment of the M.B.A Program requirements.
Signature of the Student Signature of Faculty Supervisor
Signature of the HOD

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ACKNOWLEDGEMENTS
This is a matter of great pleasure as well as great privilege and pride for me to present this
project report. This project became possible only due to full cooperation and sincerity
provided by the Company and Institute as well. I am indebted and thankful to the
management of TATA STEEL for providing me an opportunity to work in this esteemed
and flourishing organization.
Research Report is a combined effort including this one also, so I would like to thank to all
who have helped me completion of this report purposeful.
Further I would like to thanks to my faculty my guide for their valuable support and
advices which helps me a lot to completing this project purposeful.

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TABLE OF CONTENTS
Chapter Content Page Number
1. 1. Executive summary 8
1.1 Introduction 10
1.2 Industry profile 11-22
1.3 Objectives of Internship 23
2. 2.1 company profile 26
2.2 products/ services offered services o27
2.3 customers of product 28
2.4 SWOT analysis 29
3 3.1 Activity performed during the intern 31-33
3.1 ContractLabour Management 34
3.2Applicable Rules & Act 35
3.3 Descriptionof the Acts. 36-39
3.4 Applicability of Acts & Rules pertaining to Tata
Steelwork
40-41
3.5 Condition of service Of Workmen of the
Contractor
42-45

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4. 4.1 key learning element 47
4.2 gaps reviewedin the act of tata steel 48-49
4.3 Responsibility of employer (contractor) 50-53
4.4 Conclusion 54
4.5 recommendation 55-56
5. Bibliography 57
6. Glossary 58
LIST OF TABLES
Table No. Table Name Page Number
Table 2.1 Primary product and their customers 27
Table 4.1 Applicability of principal employers and the gaps 48-49
Table 4.2 Gaps reviewed with the contractors at tata steel 51-53

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CONTRACT LABOUR MANAGEMENT AT TATA STEEL
"Law is not an abstract thing, it is a living organism since it is applied
on living human beings".
EXECUTIVE SUMMARY
Contract labour management is a growing area in most of the organizations.
Today, it is almost unavoidable for any principal employer not to avail any
services of contract workers. However, due to compliance issues, safety and
security issues, accidents, etc, the entire contract labor management process is
becoming a complex subject for departments like HR, securities and facilities; etc
Tata steel has engaged nearly 680 contractors till date. The Contract Labour
management System is one such effort to ensure the welfare of the Contract labour
engaged, as well as to strive towards 100% statutory Compliance.
Tata Steel respects the right of employees to exercise freedom of association and
collective bargaining. As working in contract worker relation cell I came to know
about the relation of contractors and the format of work done in Tata steel. At first
the contactors get themselves registered under the government. They fill the form
12 and form 13.
This project was conducted mainly to find the gaps in implementation of the act in
Tata steel. There are different norms of rules and regulation that the contractors
have to follow when they come in contract with Tata steel. Working for almost 40
days as an intern and getting knowledge of the work process of the contract labour
management. The works are related with the act.
There are many industries who work in different field but in Tata steel working in
contract cell was a different work experience. It carries the basic work of the
workers involved in Tata steel.
The work which is carried forward here is the checking of the wage payment.
Full and final settlements of the workers are done of the person who willing wants
to reign from the work.

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INTRODUCTION
Tata Steel Limited I have completed my summer internship in this company I
worked in contract labour management department. Our internship was for 40days.
This a 24x7 running company the production never stops in this company. As
working in this department we come to know the problems of working in Tata
steel.
GAIN WORK EXPERINCE AND TRANSFERABLE SKILLS
Students all have their educational experience in common. What stands out to
employers is those students who also have work experiences by the time we
graduate. This automatically makes us more marketable; as we may require less
training and are assumed to be able to handle more responsibilities. In addition to
the specialized skills of ur field, transferable skills are generally required at any job
e.g. communication/interpersonal skills, computer proficiency, and team work.
ABLE TO EXPERINCE A PROSPECTIVE CAREER PATH
Most students enter college with an idea of a major or career pat and most students
end up changing their minds. Exploring is a very important part of the academic
process, and gaining a work experience is a great way. By the time of graduation,
we have confidence that the degrees we are receiving are the right ones for us.
BETTER COMMUNICATION AND INTRACTION WITH SENIORS
It’s all about who we know. As a student intern, we are surrounded by
professionals in the industry that we are seeking access to. It’s more than just about
getting a grade, earning credit. This is an opportunity to learn from everyone
around us, ask questions, and impress them with your eagerness. These people can
be your future colleagues or can be the connection to your first job.

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Industry profile
Tata Steel’s larger production facilities comprise those in India, the UK, the
Netherlands, Thailand, Singapore, China and Australia. Operating companies
within the Group include Tata Steel Limited (India), Tata Steel Europe Limited
(formerly Corus), Tata Steel Singapore and Tata Steel Thailand.
The Tata Steel Group’s vision is to be the world’s steel industry benchmark in
“Value Creation” and “Corporate Citizenship” through the excellence of its people,
its innovative approach and overall conduct. Underpinning this vision is a
performance culture committed to aspiration targets, safety and social
responsibility, continuous improvement, openness and transparency.
In 2008, Tata Steel India became the first integrated steel plant in the world,
outside Japan, to be awarded the Deming Application Prize 2008 for excellence in
Total Quality Management. In 2012, Tata Steel became the first integrated steel
company in the world, outside Japan, to win the Deming Grand Prize 2012
instituted by the Japanese Union of Scientists and Engineers.
Indian Operations
Tata Steel founded India’s first industrial city, now Jamshedpur, where it
established India’s first integrated steel plant in 1907. The Jamshedpur Works
currently comprises of a 9.7 mtpa crude steel production facility and a variety of
finishing mills. Mines and collieries in India give the Company a distinct
advantage in raw material sourcing. Iron Ore mines are located at Noamundi
(Jharkhand) and Joda (Odisha) both located within a distance of 150 km from
Jamshedpur. The Company’s captive coal mines are located at Jharia and West
Bokaro (Jharkhand).

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Visit website : www.tatasteeleurope.com
European Operations
Tata Steel Europe (erstwhile Corus) has a crude steel production capacity of 18
mtpa. Tata Steel Europe has manufacturing operations in Western Europe, plants in
UK, Netherlands, Germany, France and Belgium, backed by a sophisticated global
network of sales offices and service centres.
South East Asian Operations
Visit websites : www.natsteel.com.sg | www.tatasteelthailand.com

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Tata Steel started its operations in SEA in 2004 with investments in NatSteel
Singapore (Tata Steel Singapore) and Millennium Steel (Tata Steel Thailand).
With over 40 years of Steel making experience, Tata Steel Singapore is one of the
most prominent steel producers in the Asia Pacific region. It caters to the growing
construction industry through its manufacturing presence in Singapore, Thailand,
China, Malaysia, The Philippines and Australia.
The long journey
In his lifetime J.N.Tata was captivated and led by the three guiding stars - building
an iron and steel company, generating hydro-electric power and creating an
institution that offer the besteducation in science.
Jamsetji Tata had started his quest for steel way back in 1882 but it was twenty-
five years later, in December 1907 that the explorers found their way to Sakchi - at
the confluence of the rivers Subarnarekha and Kharkai. On 27th February 1908
when the first stake was driven into the soil of Sakchi the dream had come alive.
When Tatas issued shares on 26th August 1907, for the first time in the financial
history of the country, the Indian people - the masses, the affluent and the common
people -joined hands to put up the first truly Indian enterprise. The Tata family
contributed the remaining 11% shares of the Tata Iron and Steel Company Limited.
It did not take long for work to begin thereafter. In 1908 the plant became
functional and the next year, in 1909 the blast furnaces, steel furnaces, coke ovens,
powerhouse and machine shops were laid down. Land for the site, mines and
quarries were acquired in 1910. The Government contributed their bit by
connecting railway to Gorumahisani. The first steel ingot was rolled on 16th
February 1912 - a momentous day in the history of industrial India.

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Towardsself-sufficiency
The Steel Company obtained its first colliery in 1910, adding six more in course of
time. Several mines were spread over the states of Bihar, Orissa and Karnataka.
The Tatas soon became the first to own a fully mechanised iron ore mine in India
at Noamundi. The Coal Beneficiation Plant at West Bokaro undertook
beneficiation of low-grade coal, thus helping in the conservation of the fast
dwindling resources of high quality coal. The collieries, the mines and the quarries
together furnish the bulk of the raw material requirements of the plant.
When the entire world was reeling in the Great Depression, the Tatas survived and
supplied nearly three-fourth of the country’s steel requirements. By the Second
World War, Tatas’ production capacities had expanded enough to make their
prices lower than those of steel produced in England, raising them to an
authoritarian position. Post-Independence the Tatas decided to set on the Herculean
task of nation building. The much-required steel for the newly devised ‘Five-year
Plans’ came from the Tata factories. The Company undertook the Howrah Bridge
in Calcutta, the Bhakra-Nangal Project and the Damodar Valley Corporation, the
port at Kandla, the city of Chandigarh and many more important projects.
Picking up pace
The last decade of the twentieth century happened to be a very hectic period of
self-renewal and growth for Tata Steel. An extensive technological overhaul,
several improvement projects, cost control measures, optimising IT support and a
strong customer-centric approach were all instrumental in finding the right
direction for changing outlooks. At the turn of the millennium, Tata Steel had
earned the complete trust of the whole wide world and emerged as a strong entity
in the global steel industry.
The last decade has been marked by Tata Steel’s prominent role in the overall
development of the country, even during phases of economic turbulence and its
decisive foray into more and more global territory. Intense strategic thinking about
future expansions, plans for organic growth and initiation of new projects are a few
highlights in Tata Steel’s expanding and more penetrative roles in the larger
perspective. The acquisition of NatSteel in 2004 was Tata Steel’s first overseas
acquisition and the series of joint ventures and mergers that followed found a peak
when the acquisition of Corus, happened in April 2007. But in every positive step
that the Company has taken towards growth and expansion, involving diverse

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cultures and geographies, Tata Steel has never lost sight of its great heritage of
social and community responsibility.
The globalsteel company
The current global steel industry is in its best position in comparing to last decades.
The price has been rising continuously. The demand expectations for steel products
are rapidly growing for coming years. The shares of steel industries are also in a
high pace. The steel industry is enjoying its 6th consecutive years of growth in
supply and demand. And there is many more merger and acquisitions which
overall buoyed the industry and showed some good results. The supreme crisis has
lead to the recession in economy of different countries, which may lead to have a
negative effect on whole steel industry in coming years. However steel production
and consumption will be supported bycontinuous economic growth.
CONTRIBUTION OF COUNTRIES TO GLOBAL STEELINDUSTRY
The countries like China, Japan, India and South Korea are in the top of the above
in steel production in Asian countries. China accounts for one third of total
production i.e. 419m ton, Japan accounts for 9% i.e. 118 m ton, India accounts for
53m ton and South Korea is accounted for 49m ton, which all totally becomes
more than 50% of global production. Apart from this USA, BRAZIL, UK accounts
for the major chunk of the whole growth.
Country Crude SteelProduction
(mtpa)
CHINA 272.5
JAPAN 112.7
UNITED STATES 98.9
RUSSIA 65.6
SOUTH KOREA 47.5
F.R.GERMANY 46.4
UKRAINE 38.7
BRAZIL 32.9
INDIA 32.6
ITALY 28.4

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SUPPLYOF STEEL IN THE INDIAN MARKET
Over the past ten years India‘s crude steel output rose nearly 7%per year to 55.3
million tons , while global crude steel output increased by 4% (Germany managed
an increase of just under 1%p.a.) Although India is the world‘s eighth largest steel
producer, its3%-plus share of global steel output is still very low; it is roughly the
same as Ukraine‘s share of world steel production. China, the world‘s biggest
steelmaker, produces nearly ten times as much as India. only China was the growth
rate considerably higher at 15%. By contrast, production volumes fell in the US
and the EU-25 by nearly 5% and roughly 4% respectively. In the first five months
of 2006 Indian steel production continued to expand unabated, rising 10%. We
forecast a significant increase in output by the Indian steel industry over the
medium term. The entire industry‘s contribution to gross domestic product should
rise in the coming years to more than 30% – compared to just fewer than 27% at
present. The growth drivers are the expanding client industries automotive
engineering.
RISK FACTORS:
Even though India is now one of the world‘s top ten steelmakers its domestic
output is insufficient to meet the demand in all segments. In 2005, some 4.7
million tons of steel were imported, compared with only 2.2 million ten years
earlier (an annual increase of 8%). Low steel prices smooth the way for imports
from Russia, Ukraine and Kazakhstan. The geographical proximity of Japan, South
Korea and China makes them important suppliers as well. We do not expect India
to be self-sufficient in many segments over the medium term. There are several
reasons for this: firstly, steel consumption is rising very fast as a consequence of
the prospective dynamic economic growth. Secondly, there is demand for high-
quality products which India will not be able to supply in sufficient quantities for
the foreseeable future. These include products with surface finishing that helps
them to be more durable and retain their value for longer. In general, the trend
towards weight-optimized components persists; this improves the prospects for
Western European exporters in the Indian market. As a member of the WTO (since
1995) India is obliged to gradually abolish import restrictions, so importing steel
should be far less problematic in future.

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MAJOR PLAYERS OF STEEL IN INDIA:
1. Public Sector
(A) Steel Authority of India Limited (SAIL) Steel Authority of India Limited
(SAIL) is a company registered under the Indian Companies Act, 1956 and is an
enterprise of the Government of India. It has five integrated steel plants at Bhilai
(Chattisgarh), Rourkela (Orissa), Durgapur (West Bengal), Bokaro (Jharkhand)
and Burnpur (West Bengal). SAIL has three special and alloy steel plants viz.
Alloy Steels Plant at Durgapur (West Bengal), Salem Steel Plant at Salem
(Tamilnadu) and Visvesvaraya Iron & Steel Plant at Bhadravati (Karnataka). In
addition, a Ferro Alloy producing plant Maharashtra Elektrosmelt Ltd. at
Chandrapur, is a subsidiary of SAIL. SAIL has Research & Development Centre
for Iron & Steel (RDCIS), Centre for Engineering & Technology (CET), SAIL
Safety Organisation (SSO) and Management Training Institute (MTI) all located at
Ranchi; Central Coal Supply Organisation (CCSO) at Dhanbad; Raw Materials
Division (RMD), Environment Management Division (EMD) and Growth Division
(GD) at Kolkata. The Central Marketing Organisation (CMO), with its head
quarters at Kolkata, coordinates the country-wide marketing and distribution
network.
(B) Rashtriya Ispat Nigam Ltd. (RINL):- RINL, the corporate entity of
Visakhapatnmam Steel Plant (VSP) is the first shore based integrated steel plant
located at Visakhapatnam in Andhra Pradesh. The plant was commissioned in
August 1992 with a capacity to produce 3 million tonne per annum (mtpa) of liquid
steel. The plant has been built to match international standards in design and
engineering with state-of- the- art technology incorporating extensive energy
saving and pollution control measures. Right from the year of its integrated
operation, VSP established its presence both in the domestic and international
markets with its superior quality of products. The company has been awarded all
the three International standards certificates.
C) Metal Scrap Trade Corporation Ltd. (MSTC) :- MSTC Ltd. (formerly Metal
Scrap Trade Corporation Ltd.) was set up on the 9th September, 1964 as a
canalizing agency for the export of scrap from the country. With the passage of
time, the company emerged as the canalizing agency for the import of scrap into
the country. Import of scrap was de-canalized by the Government in 1991-92 and
MSTC has since then moved on to marketing ferrous and miscellaneous scrap
arising out of steel plants and other industries and importing Coal, Coke,
Petroleum products, semi finished steel products like HR Coils and export

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primarily Iron ore. The Company has also established an e-auction portal and
undertakes e-auction of Coal, Diamonds and Steel Scrap and has developed an e-
procurement portal in house.
(D) Ferro Scrap Nigam Ltd. (FSNL) FSNL is a wholly owned subsidiary of MSTC
Ltd. with a paid up capital of Rs. 200 lakh. The Company undertakes the recovery
and processing of scrap from slag and refuse dumps in the nine steel plants at
Rourkela, Burnpur, Bhilai, Bokaro, Visakhapatnam, Durgapur, Dolvi, Duburi &
Raigarh. The scrap recovered is returned to the steel plants for recycling/ disposal
and the Company is paid processing charges on the quantity recovered at varying
rates depending on the category of scrap. Scrap is generated during Iron & Steel
making and also in the Rolling Mills. In addition, the Company is also providing
Steel Mill Services such as Scarfing of Slabs, Handling of BOF Slag, etc.
(E) Hindustan Steelworks Construction Ltd. (HSCL) HSCL was incorporated in
June 1964 with the primary objective of creating in the Public Sector an
organization capable of undertaking complete construction of modern integrated
Steel Plants. HSCL had done the construction work of Bokaro Steel Plant, Vizag
Steel Plant and Salem Steel Plant from the inception till commissioning and was
associated with the expansion and modernization of Bhilai Steel Plant, Durgapur
Steel Plant, IISCO (Burnpur) and also Bhadravati Steel Plant. With the tapering of
construction activities in Steel Plants the company intensified its activities in other
sectors like Power, Coal, Oil and Gas. Besides this, HSCL diversified in
Infrastructure Sectors like Roads/Highways, Bridges, Dams, Underground
Communication and Transport system and Industrial and Township Complexes
involving high degree of planning, co-ordination and modern sophisticated
techniques. The company has developed its expertise in the areas of Piling, Soil
investigation, Massive foundation work, High rise structures, Structural fabrication
and Erection, Refractory, Technological structures and Pipelines, Equipment
erection, Instrumentation including testing and commissioning. The company has
also specialized in carrying out Capital repairs and Rebuilding work including hot
repairs of Coke Ovens and Blast Furnaces and other allied areas of Integrated Steel
Plants.

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2. Private Sector
The private sector of the Steel Industry is currently playing an important and
dominant role in production and growth of steel industry in the country. Private
sector steel players have contributed nearly 67% of total steel production of 38.08
million tonnes to the country during the period April-December, 2007. The private
sector units consist of both major steel producers on one hand and relatively
smaller and medium units such as Sponge iron plants, Mini Blast Furnace units,
Electric Arc Furnaces, Induction Furnaces, Rerolling Mills, Cold-rolling Mills and
Coating units on the other. They not only play an important role in production of
primary and secondary steel, but also contribute substantial value addition in terms
of quality, innovation and costeffective.
(A)TATA STEEL LTD.
Tata Steel has an integrated steel plant, with an annual crude steel making capacity
of 5 million tonnes located at Jamshedpur, Jharkhand. Tata Steel has completed the
first six months of fiscal 2007-08 with impressive increase in its hot metal
production. The hot metal production at 2.76 million tonnes is 4.6%more
compared to the corresponding period of the previous year. The crude steel
production during the period was 2.43 million tonnes which is marginally lower
than the production of 2.45 million tonnes last year. The saleable steel production
was at a lower level during the period April September, 2007 (2.34 million tonnes)
compared to the corresponding period of last year (2.36 million tonnes). Tata Steel
is continuing with its programme of expansion of steel making capacity by 1.8
million tonnes to reach a rated capacity of 6.8 million tonnes. The Project is
reported to be moving ahead of schedule and is likely to be commissioned by May
2008 against the original schedule of June 2008. The Company has planned to take
the capacity to 10 million tonnes by the fiscal year 2010. Tata Steel‘s Greenfield
projects in Orissa and Chattisgarh are progressing on schedule with placement of
equipment order for Kalinganagar Project in Orissa and commencement of the land
acquisition process. Jharkhand Project is awaiting announcement of Relief &
Rehabilitation policy of the State Government.

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(B)ESSAR STEELLTD.
Essar Steel Holdings Ltd. (ESHL) is a global producer of steel with a footprint
covering India, Canada, USA, the Middle East and Asia. It is a fully integrated flat
carbon steel manufacturer—from iron ore to ready-to-market products. ESHL has a
current global capacity of 8 million tonnes per annum (MTPA). With its aggressive
expansion plans in India and other parts of Asia and North America, its capacity is
likely to go up to 25 MTPA by 2012. Its products find wide acceptance in highly
discerning consumer sectors, such as automotive, white goods, construction,
engineering and shipbuilding. Essar Steel Ltd., the Indian Company of Essar Steel
Holdings Limited, is the largest steel producer in western India, with a current
capacity of 4.6 MTPA at Hazira, Gujarat, and plans to increase this to 8.5 MTPA.
The Indian operations also include an 8 MTPA beneficiation plant at Bailadilla,
Chattisgarh which has world‘s largest slurry pipeline of 267 km to transport
beneficiated Iron Slurry to the pellet plant, and an 8 MTPA pellet complex at
Visakhapatnam. The Essar Steel Complex at Hazira in Gujarat, India, houses the
world‘s largest gas-based single location sponge iron plant, with a capacity of 4.6
MTPA. The complex also houses the steel plant and the 1.4 MTPA cold rolling
complexes. The steel complex has a complete infrastructure setup, including a
captive port, lime plant and oxygen plant. Essar Steel produces highly customized
value-added products catering to a variety of product segments and is India‘s
largest exporter of flat products, selling close to half of its production to the highly
demanding US and European markets, and to the growing markets of South East
Asia and the Middle East. The company‘s products conform to quality
specifications of international quality certification agencies, like ABS, API, TUV
Rhine Land and Lloyd‘s Register. Essar Steel is the first Indian steel company to
receive an ISO 9001 and ISO 14001 certification for environment management
practices. Essar Steel utilizes Hot Briquetted Iron-Direct Reduced Iron (HBIDRI)
technology supplied by Midrex Technology, USA along with four 150 tonnes DC
electric arc furnaces imported from Clecim, France. The Hazira unit of Essar Steel
is equipped with 5.5 million tonnes per annum (MTPA) hot briquetted iron plant,
4.6 MTPA electric are furnace, 4.6 MTPA continuous caster, 3.6 MTPA hot strip
mill and 1.4 MTPA Cold Rolling Mill. During the year 2007-08, Essar was
awarded costs ISO/TS 16949 and OHSAS 18000 certification.

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(C) JSW STEEL LTD.
JSW Steel is a 3.8 MTPA integrated steel plant, having a process route consisting
broadly of Iron Ore Beneficiation – Pelletisation – Sintering – Coke making – Iron
making through Blast Furnace as well as Corex process – Steel making through :
BOF- Continuous Casting of slabs – Hot Strip Rolling – Cold Rolling Mills. JSW
Steel has a distinction of being certified for ISO-9001:2000 Quality Management
System, ISO-14001:2004 Environment Management System and OHSAS
18001:1999 Occupational Health and Safety Management System. The capacity as
on 1.11.2007 stood at 3.8 MTPA and the capacity is likely to rise to 6.8 MTPA by
2008, and further to 9.6 MTPA by 2010.
(D) JINDAL STEEL& POWER LTD. (JSPL)
Jindal Steel & Power Limited is one of the fast growing major steel units in the
country. The Raigarh plant of JSPL has a present capacity of 1.37 million tonne
per annum (MTPA) sponge iron plant, 2.40 MTPA Steel Melting Shop (SMS), 1.0
MTPA plant Mill, 2.30 sinter plant, 0.8 MTPA coke oven and a 330 Mega Watt
captive power plant. During the year 2006-07, the company produced 1.19 million
tonnes of sponge iron, 0.8 million tonnes of various steel products, 0.57 million
tonnes of hot metal and 0.21 million tonnes of rolled products.
FACTORS HOLDING BACK THE INDIAN STEELINDUSTRY
The growth of the Indian steel industry and its share of global crude steel production could be even
higher if they were not being held back by major deficiencies in fundamental areas. Investme nt in
infrastructure is rising appreciably but remains well below the target levels set by the government
due to financing problems.
1. Energy supply:
Power shortages hamper production at many locations. Since 2001 the Indian
government has been endeavoring to ensure that power is available nationwide by
2012. The deficiencies have prompted many firms with heavier energy demands to
opt for producing electricity with their own industrial generators. India will rely
squarely on nuclear energy for its future power generation requirements. In
September 2005 the 15th and largest nuclear reactor to date went on-line. The
nuclear share of the energy mix is likely to rise to roughly 25% by 2050. Overall,
India is likely to be the world‘s fourth largest energy consumer by 2010 after the
US, China and Japan.

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2. Problems procuring raw material inputs:
Since domestic raw material sources are insufficient to supply the Indian steel
industry, a considerable amount of raw materials has to be imported. For example,
iron ore deposits are finite and there are problems in mining sufficient amounts of
it. India‘s hard coal deposits are of low quality. For this reason hard coal imports
have increased in the last five years by a total of 40% to nearly 30 million tons.
Almost half of this is coking coal (the remainder is power station coal). India is the
world‘s sixth biggest coal importer. The rising output of electric steel is also
leading to a sharp increase in demand for steel scrap. Some 3.5 million tons of
scrap have already been imported in 2006, compared with just 1 million tons in
2000. In the coming years imports are likely to continue to increase thanks to
capacity increases.
3. Inefficient transport system:
In India, insufficient freight capacity and a transport infrastructure that has long
been inadequate are becoming increasingly serious impediments to economic
development. Although the country has one of the world‘s biggest transport
networks – the rail network is twice as extensive as China‘s – its poor quality
hinders the efficient supply of goods. The story is roughly the same for port
facilities and airports. In the coming years a total of USD 150 bn is to be invested
in transport infrastructure, which offers huge potential for the steel industry.

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OBJECTIVE
 To attain a clear understanding of the applicable laws.
 To know the applicability of the act(s) and its objective
 My study is to find the gaps in regard of contract labour act which is even
followed by tata steel.

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Company profile
Tata Steel is a large multinational company, with its headquarter and core
operations in India. Tata Steel is now the world’s sixth largest Steel Company.
Asia’s first integrated steel plant and India’s largest integrated private sector steel
company, it is now the world’s second most geographically diversified steel
producer.
Tata Steel has operation in 26 countries and commercial presence in over fifty
countries. Major steel making operations are in
1. Jamshedpur , india
2. Ijmuiden, Netherlands
3. Port Talbot, UK
4. Thailand
5. Singapore
Tata Steel produces steel using a integrated steel-making concept, utilizing raw
material like iron ore , coal , limestone etc. to produce hot metal . This hot metal is
converted into steel through a steel- making process. This liquid steel is then cast
and rolled into a variety of product.
Major operation division in India
 Main steel works Jamshedpur.
 tubes division Jamshedpur
 growth shop Jamshedpur
 agrico division Jamshedpur
 Ferro alloys and mineral division Orissa
 West bokaro mining division bokaro
 Jharia division dhanbad

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Market served and primary products
Tata group produces a range of products for global market and in particular Indian,
European and fast growing Asian markets including a wide range of steel products
used for transport , construction, automotive packaging and other industries.
Tata Steel limited serves mainly the domestic Indian market. In india production is
segmented into two main catagories – flat and long product at a balance
approximately 67% and 33% of production respectively. Whilst the focus of
business is steel making the company also seek to maintain control downstream
and upstream operations and control its business environment, with raw material
production, transportation and processing operations.
Table 2.1
Products Descriptions Marketsegment key customers
Long product Rebars Large construction
project , individual
houses
L&T, DLF , HCC
Individual building
High and low
carbon wires
roads.
Wire drawing
industries for
applications like
tyre beads,
construction ,
electrodes etc.
Wire division ,
bansal , miki wires
Flat products Hot and cold rolled
sheets , hot and
cold rolled coils,
galvanized coils
and sheets , hot
rolled plates.
Auto , construction
industries, general
engineering ,
appliances,
industry and
housing
applications.
Tata motors, ashok
Leyland, Toyota,
Honda, ford,
Maruti, Hyundai ,
Bajaj , TVS
Semi finished
goods
Billets , slabs
Tubes Standard pipes , precisions tubes, closed structure
Bearing wires Rolled rings, forged rings, machine rings and coastal steel
wires.
Minerals Coal and coke, iron ore and chorme concentrate
Branded product Tata shaktee GC sheets , Tata tiscon construction rods, Tata
pipes , Tata bearing, Tata wirons , Tata agrico , Tata structura

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Customer of product
Tata Steel
Parent Company Tata Group
Category Iron & steel
Sector Industrial products
Tagline/ Slogan Values stronger than steel
USP
The top ten global steel companies with an annual crude steel
capacity of over 28 million tonnes per annum
STP
Segment
Strip & long Steel products, Iron ore mining, Agricultural
implements
Target Group Construction, automotive, infrastructure, capital goods
Positioning
The global steel industry benchmark for value creation and
corporate citizenship
Competition
Competitors
1. SAIL
2. JSW Steel Ltd
3. Essar Steel Ltd
4. ArcelorMittal
5. POSCO

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SWOT ANALYSIS OF TATA STEEL
Strength:-
1. Raises over 14 million tonnes of ores from its captive collieries, iron ore mines
and quarries
2. Adaptability of company in the fast changing environment
3. Excellent integration with Corus which has more than 2000 metallurgists
4. Controlover raw materials
5. Economies of scale
6. Strong backing of Tata brand name.
7. Operations in 26 countries and a commercial presence in over 50 countries.
Weakness:-
1. Operational efficiency are not as good as international leaders
2. Slightly lagging in technological front
Opportunity:-
1. Newer technologies- The Corex process, TheHismelt process, Direct iron ore
smelting
2. Public private partnership
3. Acquisition of coalblocks in Asia, Africa etc.
Threat:-
1. Rising coking coalprices
2. India is plagued with violent agitation against land acquisition
3. Government & regulatory norms
4. International competition

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CHAPTER - 3

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Activity performed during the internship
Week 1
We as an intern attended our 6weeks training program in the well know industry
TATA STEEL. Attended 3days vocational training with around 300 students of
different colleges and learnt about the company and its operation.
Exposure to the safety issues were given for the next two days at savak nanavati
technology institute. Entry passes were issued for the entry to the company which
were being verified on three different gates. We were provided with safety shoe,
helmet, and glasses. It not only cares about it permanents employee but it cares for
their visitors even.
eg: When Aditaya Birla chemical marketing manages comes to the company for
making a marketing deal a one day gate pass is provided to them.
Though there are more than 7 days to enter tata steel plant of tata steel but still the
gate pass of the vehicles are made. There are few permanent vehicles that move
every day in Tata steel.
Eg: the vehicle bringing the grocery item for the canteen for that van the gate pass
is made.
There are railway tracks inside the company to carry raw materials from one
department to other. So while the train moves there the is voice that announces
“Sawdhan tarin aa rhe hai”. This is the alert message passed on to all the moving
buses carrying the employees to their destination the unskilled workers moving
with bicycle and the personmoving with their private vechiles.
Everyday there was meeting from 8:30am to 9:00am this was the process ofthe
entire department in Tata steel. In the department of CLM the sr.manger used to
give solution. The associate manager was asked to type mail for the Hr. Senior
Manger so that it gives them a better practice for the organization.

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Week 2
The projected was allotted in the HR department and in sub division of HR
department of contract labour management. The work that this department carries
is the issue on the basic level of the contracts and problems faced by the workers at
tata steel. One the day one we the intern were called for a informal meeting with
the other employees to just introduce ourselves and make our self comfortable with
the employees so that we can move in the flow the working environment.
The staff combined of different culture but they were comfortable with each other.
The where very cooperative helped one another in problem solving of different
types.
To enhance our knowledge on the legal issues followed by tata steel. We were
provided with the government format of both tata steel as well as government to go
through it and have brief work idea how contract labour management department
makes its decision and solves the issue of the workers.
Week 3
After the observation and brief study of the working style of the employees in tata
steel we were comfortable with the contractors and the employee so we moved out
for the different table works and everyday observation of different problems and
solution which made us more active and enthusiastic in the work life so we were
more motivated and the eagerness to do the work made us more active so we were
capable of performing the work. The work assigned was to check the muster roll of
the workers and their daily signature of their presence in the company. On the basis
of worked they were allotted to such like the drivers, people working in the
manufacturing company, people working in the construction.
According to the division of work first basic level work was to have a brief idea of
the registration process and different forms field in the guidance of the government
to come in contract with the firm of tata steel.
In case if the family member meet an accident while working in the company any
member of the family where provided with any suitable job for them.
The next table worker was taken up as the “wage payment” it is the process for
what the workers earn for themselves after serving or completing the assigned job.
A contractor shall be responsible for payment of wages to each worker by the 7th of

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every month and such wages shall be paid before the expiry for such period. For
contractors who have more than 1000 workmen, can make payment up to 10th of
every month. As per the DLC circular, cash payments should be done away with
completely.
BONUS PAY-Annually, the CWR cell is also able to retrieve data on the bonus
pay made by the vendors in the following manner For a particular vendor,(a) In a
FY, how many contract workers have worked? (b) No. of workers who have
worked for a minimum of 30 days.(c) List of names of workmen and number of
days worked by each. (d)Calculation at 8.33% of Rs. 3500, upto a maximum wage
of Rs. 10000.
Week - 4
The next work experience was full and final settlement of the worker who willing
wants to leave the job and have submitted their reigning letter. Monthly generation
of list of contract workers separated from a vendor since the previous month (On
the 1st of every month). During full and final settlement, the company must ensure
that the parting vendor must have complied and fulfilled the following:
Monthly wage payment of each and every vendor ; PF compliance; ESI
compliance; Bonus payment; Leave payment; Gratuity( if worked for a continuous
time period of 5 years); Retrenchment (for a period of 240 days); Notice pay -If
worked for a period of: (a) 26 to 240 days, a pay for 3 days. (b) Greater than 240
days, a notice pay of 26 days.

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Week – 5
It is compulsory for the workers below 15000 to have the provisory fund account.
So that the workers keep the family in safer hand. If at all they meet with any
accident that amount will be helpful for their families. The employees earning
more than 1500 should employee state insurance (ESIC). The PF is even the part of
the wage payment it is compulsory for all the people connected with Tata steel
should have a PF account and the amount is to been deducted according to the
government norms as like PF contribution by employer & employee is 12% on the
basic and DA. The last date of submission of PF contribution is 15th of the next
month.
Week – 6
After having a complete knowledge of the work process it was the time to make a
final entry on the system by the help of information technology and to certify the
vendors engaged with the company to make their entry and forward it to the higher
authority to exceed their gate pass and permit them to process their work in various
department.
In final week for the last two days we moved forward with the final report we
prepared on the basis of our day to day observation for the 60days. Till the of the
day I was supported by our guide and the staff members of the company.
During our the training period the guards were friendly with us and each day they
welcomed us to the plant with the warm welcome smile.
As working in the contract worker cell department. I came through much process
that we don’teven go through the management books.
It’s a good learning period for me an intern.

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CONTRACT LABOUR MANAGEMENT
Contract labour management is a growing area in most of the organizations.
Today, it is almost unavoidable for any principal employer not to avail any
services of contract workers. However, due to compliance issues, safety and
security issues, accidents, etc, the entire contract labor management process is
becoming a complex subject for departments like HR, securities and facilities, etc.
Tata steel has engaged nearly 680 contractors till date and has an IT enabled
contractor’s cell. The Contract Labour management System is one such effort to
ensure the welfare of the Contract labour engaged, as well as to strive towards
100% security.
This project was conducted mainly to find out the gaps in the act in Tata steel.
Whether it serves the purposeof the contractor in accordancewith the act.
Principle employer
It is mandatory on the part of the principal employer to seek registration under
section 7 of the Act . the act makes it obligatory on the part of every contractor not
to undertake any work through contract labour without obtaining the valid licence.
Duties to be maintained prescribed in register and records are
(a) Muster roll
(b)Register of wages
(c)Register of deduction
(d)Register of overtime
(e) Register of fines
(f) Register of advances
(g)Wage slip.

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APPLICABLE RULES AND ACT
 Contract Labour (regulation & abolition) Act 1970.
 Jharkhand Contract Labour (regulation & abolition) Rule 1972.
 The Payment of Bonus Act 1965.
 Industrial Dispute Act 1947.
 Bihar Factories Rule 1950.
 Payment of gratuity Act 1972.
 Employee provident fund and miscellaneous provident Act 1952.
 Employee State Insurance Act 1948.
 Minimum Wages Act 1948.
 Payment of Wages Act 1936.

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Description of the Acts.
Contract labour (regulation &abolition) Act 1970
An act to regulate the employment of contract labour in certain establishments and
to provide for the abolition in certain circumstances and for matters connected
there with.
This act was passed to prevent the exploitation of contract labour but also
introduce better conditions of work where contract labour is justified.
It is extended to whole of India. It shall come into force on such date as the central
government may by notification in the official gazette, appoint and different dates
may be appointed for different provisions of the act.
It is applied to every establishment in which twenty or more workmen are
employed or were employed on any day of the preceding twelve months as
contract labour.
Jharkhand contract labour (regulation & abolition) rules 1972
Jharkhand contract labour was made after the contract labour (regulation &
abolition) rules after the act for the labour welfare was designed. In exercise of the
power conferred under sub clause (b) clause – v of sub rules (2) of rule – 25 of the
Jharkhand contract labour (regulation and abolition) rules 1972, the commission of
labour, Jharkhand, Ranchi hereby specify the following rates of wages, holidays,
hours of work and condition of service for the workmen employed in the
establishment of following category of Principle Employers.
Factories Act 1948
The main objective of the Factories Act 1948 is to ensure adequately safety
measure and to promote the health and welfare of the workers employed in
factories. This Act covers all manufacturing processes and establishments falling
within the definition of ‘factory’ as defined.

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APPORVAL, LICENSING AND REGISTRATIONOF FACTORIES
(i) Submission of plan of any class or description of factories to the chief
inspector or the state government.
(ii) Obtaining previous permission of the state government for the site on
which factory is to be situated and for construction of any factory.
(iii) Nature of plans and specification and the authority certifying them.
(iv) Registration and licensing of factories.
(a) MEASURES TO BE TAKEN BY FACTORIES FOR HEALTH, SAFETY AND
WELFARE OF WORKERS.
(b) SPECIAL PROVISIONS RELATING TO HAZARDOUS PROCESSES.
(c) WORKING HOURS OF ADULT.
PAYMENT OF BONUS ACT 1956
Minimum Bonus: 8.33% if salary or wages earned during accounting year or
Rs.100 whichever is higher, whether or not the employer has any allocable surplus
in the accounting year. Maximum Bonus: 20% of salary or wages only if allocable
surplus exceeds the amount of minimum wages bonus payable under the act.
Salary or wage calculation: Salary or wage exceeding Rs.3500: Rs.3500 Salary or
wages less than Rs.10, 000: Actual Salary or wages: Basic + DA.
INDUSTRIAL DISPUTES ACT 1947
The Industrial Disputes Act 1947 extends to the whole of India and
regulates Indian labour law so far as that concerns trade unions. It came into
force April 1, 1947. The principal employer under the Act would be employee
under the Industrial Disputes Act in certain circumstances, against who
‘IndustrialDispute’be raised.
PAYMENT OF GRATUITY ACT 1972
The minimum years of service rendered by the workman must be 5 years. Payment
of gratuity is applicable on termination, resignation or retirement. Wages for

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calculation are at 15 days’ wages for every completed year as if the month
comprises of 26 days at the last drawn wages (Basic+DA). Calculation for seasonal
worker will be done at 7 days’ wages for every completed year of service.
EMPLOYEE’S PROVIDENT FUND & MISCELLANEOUS
PROVISION ACT 1952
PF contribution by employer & employee is 12% on the basic and DA. Every
employee drawing wages and DA upto Rs 15000 will be eligible to become a
member. In case of contractor, it is the responsibility of the principal employer to
ensure that provisions of this act are compiled by Contractors. The last date of
submission of PF contribution is 15th of the next month.
EMPLOYEE’S STATE INSURANCE ACT 1948
Every employee drawing wages and DA upto Rs. 15,000/- will be eligible to
become a member. Company should inform within 48 hours to the Factory
Inspector and ESIC inspector if any fatal accident (which can be result into death);
If the person fails to inform it is being created as a death or murder against a
Company. Submission Contribution 6.5% of Basic + DA, 1.75% deduct from
Employee Salary on Basic + DA, 4.75% employer contribution.
MINIMUM WAGES ACT 1948
This act provides that the principal employer will ensure that the workers engaged
through contractor will be paid wages not less than the minimum rate of wages
fixed under the Minimum Wages Act.
PAYMENT OF WAGES ACT 1936
The wage of the workers are decided by the government Jharkhand contract labour
(regulation & abolition ) rules 1972.The wage period is fixed by the government of
India and steel follows the same rule which is set by the government. The DA and
overtime payment is made accordingly to workers time period.

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Applicability of Acts & Rules pertaining to Tata Steel work
(i) Payment of bonus: - it is an act which is given in the financial year.
Less than 30days is not eligible.
(a) Minimum Bonus: 8.33% if salary or wages earned during accounting
year or Rs.100 whichever is higher, whether or not the employer has
any allocable surplus in the accounting year.
(b)Maximum Bonus: 20% of salary or wages only if allocable surplus
exceeds the amount of minimum wages bonus payable under the act.
(ii) Industrial dispute: - it generally occurs while paying of PF or ESIC and
during the grievance or when the person meets with the accident it is the
companies responsibility to look after it.
(iii) Payment of gratuity: - if any worker continuously works for 5years.
He / she will be given the gratuity. If the worker works for 240 days in 3
years it will be multiplied 15days x the current year.
(iv) Employee provident fund and miscellaneous provision act 1952: -
Every employee drawing wages and DA upto Rs 15000 will be eligible
to become a member. The last date of submission of PF contribution is
15th of the next month. The bank copy of the transaction is given with
the total amount. The bank gives the copy with the certification which is
shown in the department to verify the amount paid for the month.
(v) Employee state insurance act 1948:- Every employee drawing wages
and DA upto Rs. 15,000/- will be eligible to become a member. Monthly
Challan – 21st of the next month is the last date of submission
Contribution 6.5% of Basic + DA, 1.75% deduct from Employee Salary
on Basic + DA, 4.75% employer contribution.

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(vi) Minimum wage: - To make payment of overtime in excess of number
of hours constituting normal working day at the rate fixed under the Act
or any other law whichever is higher. Any contract allowing payment of
wages less than minimum is null and void. Minimum wages must be
paid through banks.
The minimum wages and VDA in the state of Jharkhand for all categories of
contractworkers w.e.f01.04.2015:
Table no.1.2
DEGREE OF
SKILLS
BASIC VDA TOTAL
UNSKILLED 147.86 67.57 215.43
SEMI SKILLED 156.65 67.57 224.22
SKILLED 190 75.19 265.19
HIGHLY SKILLED 230.25 90.89 321.14
(vii) Payment of wages act 1936:- The wage period is fixed by the
government of India and steel follows the same rule which is set by the
government. On national holiday the workers are paid for those days as
it not a leave either it is a holiday.

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UNDER RULE 25
CONDITION OF SERVICE OF WORKMEN OF THE
CONTRACTOR.
It is expedient to specify rates of wages holiday’s hours of work and condition of
service of the workmen employed by contractors who do not perform the same
kind of work as the workmen directly employed by the principle employer of an
establishment.
JHARKHAND CONTRACT LABOUR (REGULATION AND
ABOLITION ) RULES 1972
In exercise of the power conferred under sub clause (b) clause – v of sub rules (2)
of rule – 25 of the Jharkhand contract labour (regulation and abolition) rules 1972,
the commission of labour, Jharkhand, Ranchi hereby specify the following rates of
wages, holidays, hours of work and condition of service for the workmen
employed in the establishment of following category of Principle Employers.
1. Employment card: - the contract labour employed by a contractor shall be
provided with an employment card in form xiv as per the provisions contained in
the rule 76 indicated there in the name and address of the workman, fathers name,
serial number in the register of workman employed the date of appointment
designation wages period and rates and his residential address.
2. Working hours :- (a) no adults workman shall be required to work for more
than 8hrs in any day and 48hrs in a week.
(b) No young person who has not completed 18yrs of age shall be required to work
for more than 7hours in a day and 42hrs in a week.

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3. Bar on employment of female :- no female shall be required to work after 7:00
P.M or before 6:00 am.
4. Bar on employment of child labour: - no child below the age of 15 years shall
be allowed to work as contractlabour.
5. Rest interval: - no workman shall be required to work for more than 5hours in
any days he has an interval of rest for at least half-an-hour.
6. Extra wages for overtime: - where a contract labour is required to work for
more than 9hrs in any day excluding the period of rest interval, he shall be entitled
to wages at the rates of twice his ordinary rate of wages.
7. national and festival holidays :- (a) every workman employed by the
contractor shall be entitled to 8 holidays in a calendar year with wages which shall
include 26th January , 15th august , 2nd October and 1st may. The remaining 4
holidays will be fixed by mutual discussion between the contractor and his labour
each year by the end of November. The list of holidays so decided will duly and
prominently be displayed by the contractor. A copy of the list of holiday for the
following year shall be furnished by the contractor to the local inspector of the
region and the deputy labour commissioner by 5th December each year.
(b) A workmen would be entitled to the festival and national holidays as per sub-
clause if he has put at least 15days of work during the calendar year and has been
on roll a day prior to the holiday.

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8) Leave with wages: - every workman who has worked under a contractor during
the calendar year shall be allowed leave with wages for the number of days
calculated at the rate of –
(i) if an adult one day for every 20 day of actual work performed by him.
(ii) If a young personone day for every 15days of actual work performed by him.
(a) A workman may at any time apply in writing to the contractor or his authority
representative not less than 7 days before the date on which he wishes his leave to
begin to take all the leave or any portion thereof allowable to him during the
calendar year.
Provided that the total number of days of leave that may be carried forward to a
succeeding year shall not exceed 30 days. The contractor shall pay the wages
whenever the contractorlabour quits the employment.
(b) a workman may, at any time apply in writing to the contractor or his authorized
representative, not less than 7 days before the date on which he wishes his leave to
begin to take all the leave or any portion thereof allowable to him during the
calendar year.
(c) Every employee for the period of leave allowed under this section shall be paid
at a rate equal to the daily average of his total full time earning for the days on
which he worked during the month immediately preceding his leave exclusive of
any overtime, but inclusive of D.A.

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9. Wage rate :-
(i) where no rates have been regulated by way of agreement, settlement or
awards for such employment application for any category or class of
workmen the contractorshall pay following wages
Un-skilled:- 3808
Semi-skilled:- 4006
Skilled: - 4873
Highly skilled: - 5920
(ii) Where to arrive at daily wages to monthly shall be divided by 26 , which
is inclusive of holiday wages.
(iii) The contractor shall pay variable dearness allowance of the workers on
the basis of notification issued by the department of labour employment
and training from time to time in this regard on the basis of increase or
decrease in all Indian consumer price index as per the provisions
contained is section-3 and section-5 of the Minimum Wages Act 1948.
(iv) If statutory wages or wages regulatory as per award /settlement/
agreement/ which are in force are more beneficial to the workermen, the
worker shall be entitled.
(v) Skilled worker is one which involves skill or competence acquired
through experience on the job or through training as an apprentice in a
technical or vocational institute and performance of which calls for
initiative and judgment.
Highly skilled work means work which calls for the degree of performance of
certain task acquired through extensive technical or professional training or
practical work experience for long years and also required of a worker to assume
full responsibility for the judgment of decision in involved in the execution of
these.

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Key learning element
As working in contract labour management department. First thing what I learnt
was.
 How to work in the corporateworld.
 To be punctual on time for the work you are paid for.
 To have respect for all the colleagues either that person is elder to you or
younger to you.
 There was no culture difference.
 Cooperative and motivating for each other.
 To be polite and humble to customers.
 To follow up the rules and regulation.
 On what basis the amount to deducted on PF and ESIC from the workers and
employees accounts.
 What are the benefits that the worker should get when they leave the
organization with their own willingness.
 The working hours for the workers that is made according the government
rule and regulation.
 On what basis the bonus is paid.
 How the grievance handling process is done.
 Leave and wage payment and overtime payment made to the workers.
 The unskilled workers should be well trained in terms of paper work as they
are not so educated.

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Gaps reviewed in the act of Tata steel
Table 4.1
Sl no Act Applicability Gaps
1. Obtaining certification for
registration.
Under contract labour act
(regulation & abolition)
1970
Tata steel in form no 2
is the application by
the principal
employer. Application
for regist ration of
establishment
employing contact
labour. It is certificate
which the government
issues to register them
under any contract.
The name and address
and date of
establishment. The
maximum number of
worker to be
employed. The type of
business. (trade,
industry
,manufacturing)
There is no gap
in this form
2. Amendment in registration
of certificate.
(regulation & abolition )
1970
Tata steel keeps in
track of the change in
the form no2 annually
there is even a change
required in an
emergency case.
After a
immediate
change in form
II should be
amended.
3. Register of contractor
1970
In this format the
contactor gets the
government
permission. To come
in contract with any
industry.
At present IT
format is going
on so there is
need of approval
for maintaining
the appropriate

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format from the
appropriate
authority.
4. Wage certification
Jharkhand contract labour
1972
In wage certification
the amount is matched
with the muster role.
The payment is
done through the
bank it the
online payment
system. Few
contract workers
getting their
wages in cash.
Cash payment
needs to
eliminate as the
employer
doesn’t have the
exact format of
in their
workplace this
makes a problem
for worker who
is working under
them.

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RESPONSIBILITY OF EMPLOYER (contractor)
Employer having invested money on running the organization through their own
source or by joint venture or through loans obtained from financial institution, it is
natural for them to earn profit, the result is the exploitation of Human Resource
and the reduction in quality of the produce under the wrong option of More
production at a low cost. The employer gets themselves register through the
government under the Act. Then at first they have to register themselves in the
procurement division. Then they come to contract worker relation for registration
they fill the format of PF, ESIC letter and copy of work Oder in which field the
employer wants to engage their workers. After that in the department of contract
worker relation cell they are resisted in the system. After that they can apply for
the gate pass. If at all employer have more than 9 members the employer have to
take the labour license. Ones the labour license they engage their works in the
department. The muster roll is even checked for how many days the worker
worked in the department they were engaged. After the payment starts they again
come back to contractor cell for the verification of the paper work whether the
workers are paid according to the law and act. The department even checks the full
and final settlement for the personwho willing reigned from the job.

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Gaps reviewed with the contractors at tata steel
Table 4.2
Sl.no Act Applicability Gap
1. Vendor registration
It’s come under
certification for
registration. Under
labour contract
(regulation &
abolition ) act
1970
The vendor registers
themselves under Tata steel
through the government.
There is no gap in
this form.
2. Labour license it is
Under labour
contract
(regulation &
abolition ) act
1970
This is done when an employer
engages more than 9 workers a
particular job.
There is no gap in
this form.
3. Employment of
contract worker.
Under labour
contract
(regulation &
abolition ) act
1970
During audit tata steel
representative verify the entire
contract worker received their
card or not.
Many employers
don’tgive the
attendance ticket to
the worker.
4. Wage payment
under Jharkhand
contract labour
(regulation &
abolition ) 1972
Tata steel gives this Cash payment
should be
eliminated.
5. Provident fund
under Employee’s
provident fund &
miscellaneous
Every employee drawing
wages and DA upto Rs 15000
will be eligible to become a
member. The last date of
Tata steel should
ensure the delivery
of annual PF
statement to the

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provision act
1952 under
Jharkhand
contract labour
(regulation &
abolition ) 1972
submission of PF contribution
is 15th of the next month. The
bank copyof the transaction is
given with the total amount.
The bank gives the copywith
the certification which is
shown in the department to
verify the amount paid for the
month.
entire contract
worker.
6. Employee state
insurance it under
the employee state
insurance Act 1948
under Jharkhand
contract labour
(regulation &
abolition ) 1972
Every employee drawing
wages and DA upto Rs.
15,000/- will be eligible to
become a member.
the principal
employer
(Contractor) should
properly educate
about the ESIC card
so that all contract
worker and their
family can get the
benefits from ESIC.
7. Bonus it is under the
payment of bonus
Act 1965 under
Jharkhand
contract labour
(regulation &
abolition ) 1972
It is the basic + DA that is
equal for bothemployee and
employer. It is a different
format then the regular format
of the engaged workers. It is in
the format of no. of employers
engaged; no of employees who
are eligible for bonus payment;
no of employee for whom the
bonus payment has been done ;
no of employees whose name
appears in form C.
There is no gap in
this form.
8. Leave it is under the
factories Act 1948
under Jharkhand
contract labour
(regulation &
abolition ) 1972
No of employees engaged in
calendar year. No of employees
eligible for leave in calendar
year; no of employees not
eligible for leave in calendar
year; no of employee whose
name appear in leave sheet. No
of employee for whom leave
payment was sheet during full
There is no gap in
this form.

TATA STEEL
Page 52
and final settlement.
9. Full and final
settlement
It is under the act of
industrial dispute.
under Jharkhand
contract labour
(regulation &
abolition ) 1972
Full and final settlement is the
process in which the final
payment of settlement of
worker is done.
a robustsystem is
required which
ensures 100%
compliance
pertening to the full
and final settlement.

TATA STEEL
Page 53
Conclusion
Tata steel is a robustcompany. As per contract labour (regulation & abolition) and
Jharkhand contract labour (regulation & abolition) Act 1972 all the rules are
followed in Tata steel.
But there is always a chance of improvement and the gaps to be fulfilled so during
my study I could study few gaps Tata steel could implementation and could
manage the company in the better way.
As when there is a change in form II it should be amended in the system of Tata
Steel. As it is the information technology world it should go hand in hand with the
technology and can bring few changes in the system.
When it comes to the safety measure I personally feel this is the best company
which takes care of its workers by all kinds of safety protections and equipments.
The unskilled workers should be trained well in regard their owner as contractors
are not cheating them workers should be aware of the rules and regulation.

TATA STEEL
Page 54
Recommendation
This is the gaps that can be filled.
 Many employers don’t return the attendance ticket to the worker so the
company should make norm in the favor of the workers who are under the
contractors.
 Tata steel should ensure the delivery of annual PF statement to the entire
contract worker.
 The principal employer (Contractor) should properly educate about the ESIC
card so that all contract worker and their family can get the benefits from
ESIC.
 A system is required which ensures 100% compliance pertaining to the full
and final settlement of the wage.
 Cash payment should be eliminated.
 Tata steel should train its unskilled worker in a better way so that they are
aware of the rules and regulation that are made for contractor.

TATA STEEL
Page 55
Bibliography
BOOKS
1) Dr. Sharma J. P.( 2009) factories act 1948 2nd edition vol 2
2) Kharbanda & kharbanda (2013) factories act 1948 4th edition
vol 6
3) Khandelwal . K .K Commentary and digest on factories act 1948
(2007) 1nd edition
4) Srivastva .K.D Commentaries on factories act 1948 (2013)
5th edition (reprint)
WEBSITES
1) Sustainability People Development Human Rights, Diversity & Opportunity
(2002) www.project on people development
2) Tata steel launches technical training programmers to develop employability
November 27 (2006) https://www. Tataemployability.htm
3) Iron industry in India since 1839 march 14 (2000) www.tatasteel iron
company, jamshedpur.htm
4) http://en.www.Wikipedia, thefreeencyclopedia.htm
5) Corporate social responsibility (2009) 102nd Annual Report www.tatasteel
2008-2009.htm

TATA STEEL
Page 56
6) TataSteelInstitutesTrainingCentresRuralDevelopmentSocietyEducationProgram
(2001) http://www.tatasteelindia.com/products-and-processes/market-
segments/consumer-goods.asp
7) TataSteelMiningOperations.htm
Glossary
HR – human resource

TATA STEEL
Page 57
CLM-contract labour management
ESIC – employee state insurance
PF – provisory fund
WTO-world trade organization
IT- information technology
HBIDRI - Hot Briquetted Iron-Direct Reduced Iron

tata steel project on "contract labour management"

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