A Critical Perspective on the Dynamics of Contractual Employment in the Indian Labour Market

This paper explores the conditions of contract work in India and discusses the experiences associated with such arrangements. In today's competitive market, access to skilled contract labor has become challenging, leading many companies, both large-scale and MSMEs, to heavily rely on contract workers. Companies often prefer contract workers over permanent employees due to the flexibility it provides in hiring and firing. Additionally, contract workers typically receive lower wages compared to regular employees, resulting in significant cost savings for companies. However, as temporary workers, they are entitled to few employee benefits. The presence of contract workers also serves as an alternative workforce, reducing the bargaining power of unionized regular employees. Despite the existence of the Contract Labour (Regulation and Abolition) Act, 1970, which aims to protect the rights of contract workers, many are still denied their legitimate rights and subjected to exploitation by their employers. The paper relies on secondary data to illustrate the conditions of contract work in India.