The staffing industry is seeking amendments in the Contract Labour (CLRA)
Act and asking for lower tax deductions to promote the growth of the flexistaff in the formal
sector, which is likely to witness an increased flow of workers with the government pushing
for salary payment through banks.
Under the aegis of Indian Staffing Federation, the industry is calling for a single license to
operate staffing business and just one return per license along with simplified documentation.
According to the federation, India is set to become the third largest country to employ 2.9
million flexi staff by 2018. Despite the fact that it is one key industry which is generating and
mobilising jobs, current policies do not recognise the industry, says the Federation.
In a statement, Suchita Dutta, executive director, Indian Staffing Federation, said, “The
government needs to bring in required amendments in CLRA Act to protect the players
working in formal sector. The industry currently demands a license at state and national
levels for the staffing companies to operate in the industry.”
Further, Dutta said, “It needs to be emphasized that the staffing companies operating in formal sector are going due through some major bottlenecks to the existing archaic laws that needs to be amended for the larger benefit of the staffing industry keeping the current potential in terms of market size.”
According to the Federation, the Indian staffing industry has about 94% (355.6 million) of the total workforce engaged in the unorganized sector with no social security.
“For the cause of employment generation, taxation should be on value added service fee/ service tax on our fees (valueadded part) rather than on total value (pass through cost). Also, with immediate effect remittance of tax should be applicable upon receipt of payment rather than on accrual,” she said