Different Policies

The different legislative policies governing child labor, might shift work, bonded labor contract labor, reservation sons of the soil have brought the legal environment to be a major item to be looked into carefully by all companies intending to recruit people for various positions. Let us examine these issues more elaborately:

The Factories Act 1948: The Act prohibits the employments of women (night work, underground work, carrying heavy loads etc) and child labor (below 14 years of age) in certain jobs.

The Apprentices Act, 1961: The Act provides for machinery to lay down syllabi and specify the period of training, mutual obligations of apprentices and employees etc. The responsibility for engagement of apprentice lies solely with the employer. The apprentice after serving a contractual term of training can be taken on regular rolls. The Act,. As amended in 1986, provides for revised rates of compensation during the apprenticeship period and for failure on the part of the employer to execute the terms of the contract.

The Employment Exchanges Act: The Act requires all employers to notify the vacancies arising in their establishments to prescribed employment exchanges before they are filled. The Act covers all establishments in Public sector and nonagricultural establishments employing 25 or more workers in the private sector.

The Contract labor Act 1970: The Act is applicable to every establishment (contractor) employing 20 or more persons. It tries to regulate the employment conditions of contract labor in certain establishments and also provides for the abolition of contract, labor, in certain circumstances.

Bonded Labor systems (Abolition) Act 1976: The Act provides for the abolition of bonded labor (system, of forced labor to liquidate debts payable to parties who are bent on exploiting the vulnerability of the victim) or his family members.

The child labor Act, 1986: The Act prohibits the employment of children below 14 years of age in certain employment. This has become a serious issue in India recently when German firms refused to accept carpets exported from Uttar Pradesh objecting to the employment of child labor in the carpet industry.

Sources of Recruitment:

The sources of recruitment may be broadly divided into two categories: internal sources and external spires. Both have their own merits and demerits.

Internal sources:

Persons who are already working in an organization constitute the internal sources. Retrenched employees, retired employees, dependents of decreased employees may also constitute the internal sources. Whenever any vacancy arises, someone from within the organization is upgraded, transferred, promoted or even demoted.

Merits and Demerits of Recruiting People from within:


1) Economical: The cost of recruiting internal candidates is minimal. No expenses are incurred on advertising.
2) Suitable: The organization can pick the right candidates having the requisite skills. The candidates can choose a right vacancy where their talents can be fully utilized
3) Reliable: The organizations have knowledge about the suitability of a candidate for a position. Known devils are better than unknown angels.
4) Satisfying: A policy of preferring people from within offers regular promotional avenues for employees . It motivates them to work hard and earn promotions. They will work with loyalty commitment and enthusiasm.

De Merits:

1) Limited choice: `The organization is forced to select candidates from a limited pool. It may have to sacrifice quality and settle for less qualified candidates.
2) Inbreeding: It discourages entry of talented people available outside organizations. Existing employees may fail to behave in innovative ways and inject necessary dynamism to enterprise activities.
3) Inefficiency: Promotions based on length of service rather than merit may prove to be a blessing for inefficient candidates. They do not work hard and prove their worth.
4) Bone of contention: Recruitment from within may lead to infighting among employees aspiring for limited higher level positions in an organization. As years roll by the race for premium positions may end up on a bitter note.

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