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Question
Who are Labour Contractors?
Solution
Labour contractors maintain close contact with labourers, and they can provide the required number of workers at short notice. In some cases,, employees themselves serve as contractors for the supply of workers. Labour contractors constitute an important source of recruitment in many industries in India. They are known by different names, such as Sardar, Mukaddam, Thekedar, etc. The disadvantage of this system is that if the contractor decides to leave the enterprise, all the workers recruited through him also leave the organisation. The popularity of this system of recruitment is declining in India.
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