What is Flexi Staffing?
Flexi staffing is a service for employing people to make them available to a third party i.e., principal company. This is a tripartite employment type that the people are hired by a staffing agency and then hired out to perform work under the supervision of a principal company.
The thing is flexi staff members have no direct relationship with the principal company. The staffing agency gets paid by the hiring firm and it is given to workers as a wage.
Key findings from the ISF report on the Impacts of Flexi Staffing
Research on “Impacts of key reforms on Flexi Staffing” was done by the Indian Staffing Federation (ISF), authority body of India’s flexi staffing industry has the following outcomes.
- As per the ISF report 2018, India is the 5th largest nation in the staffing industry.
- India has grown by 16.3% in the year 2015 to 2018 in flexi staffing and it is expected to grow by 22.7% in 2021.
- The major key reforms to drive job formalizations were GST and Demonetization.
- India may have 6.1 million flexi workforces by 2021; IT/ITes leads adoption with 12.5% penetration in flexi market.
- The top 5 sectors employing over 55% of total flexi workforce areas such as logistics, BFSI, IT/ITes, retail and government.
While unveiling the report, Mr R.P.Yadav, vice-president of ISF, said that the higher CAGR for temporary staffing in 2018 to 2021 spells good tidings for space which truly tends to emerge among the top 3 in this industry.
However these industry has an accelerated transition in recent years, still, it faces the challenges to meet the contract labour compliance norms.
To mitigate and comply with the CLRA, Contract Labour (Regulation & Abolition) Act, companies need to adhere to the following
- Timely remittances of ESI, PF, P-tax, LWF, Bonus, Gratuity, etc., should be assured
- Ready to meet the Inspections under any labour statute
- Centralized payroll administration and disbursement is required to meet the compliance
- Manpower Resource Optimization should be flexible
We, Aparajitha Corporate Services offer Flexi-staffing services to meet all your staffing requirements. From a legal perspective, our flexible model is robust as we leverage our expertise in labour law compliance. We do ensure adherence to all relevant procedures and compliance in all of our business operations.
Particularly in Flexi Staffing, Our smart solutions like centralized payroll administration, flexible manpower resources, timely remittances, etc., ensure complete compliance.