Following are the most common problems the contract labour suffer:
Casual and temporary type of employment
Illiteracy and ignorance
Small and scattered in approach
unorganised
Following are advantages to the employer for using contract labour through labour contractors:
The cost of production is decreased, a reduction in the overhead cost and also a reduction in administrative expenses.
Employing the contract labour without giving the various legally binding benefits like ESI, PF, Bonus and other various benefits which are given to the permanent workers.
Ease of taking work from the contract labour as when required without any obstructions from them. No non-sense bypassing or procrastination of work by them.