Industrial Relations And Labour Laws
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Dear All,
Need some inputs from my seniors and experts from the industry.
I want some clarifications as to what is the difference between hiring people on direct contract and through 3rd party contract and as a employer what are our direct and indirect obligations for such kind of employment.?

There is hardly any difference between employing through direct contractor and third party contractor. In both the cases the employer who employs is Principal Employer and he has connection only with the immediate contractor. As such he has to ensure that wages to the workers employed through the contractor/ sub contractor are paid in time and as per law. Since he will make payments only to the immediate contractor/ sub contractor he need not look into what agreement exists between the immediate contractor and the contractor who apoints him.
I believe that we can have more ideas on this matters from other friends also so that we can have a general picture about it.

I was going through some old posts that had no proper thread to revive. Contract labour, being a sensitive topic, I thought of extending it further and put to use.

Mr.Madhu, you are right. In both the cases, compliance of labour contract act comes into picture. The prescribed registers for Contract Labour has to be followed :

i) By Principal Employer, if it directly employs contract staff at its project site

ii) By Contractor, if the contractor is engaged by principal employer at its site

The following Registers are to be maintained as per Labor Contract Act.

a) Muster Roll Form XVI

b) Register of Wages Form XVII

c) Wages/Muster Roll Form XVIII

d) Register of deduction Form XX

e) Register of Fines Form XXI

f) Register of Advance Form XXII

g) Register of Overtime Form XXIII

It is also understood that i) the contractor shall indemnify the Company against all losses or damages, if any, caused to it on account of acts of the personnel deployed by him.

ii) The contractor shall ensure regular and effective supervision and control of the personnel deployed by him and gives suitable direction for under taking the contractual obligations.

Hope Pawan is clear now.



hi, SIR
I Had A Compliance Dispute required some suggestion how to claim or sue to the court of law
'A' company had appointed employees to a client co. B, In this employees were working For Client co.B, now contract was for 6 months, after that contract was extended more 6 months, but now salary was paid by client co.B to 'A'co. now 'A'co. credits salary to employees, contract ended 12 months i:e Jan 13 to Jan 14, now the 'A' co. is not giving, new contract letter for further 12 months, and old letter had drafted clauses that after the completion of twelve months appraisal will be effected, now 'A' co. says its a client driven process, and When Went to client co.B, Says this process is of 'A' co. who appointed employees as third payroll basis,
Now Confused Who is the Responsible For This Cycle of 'A' co, employees, client co.B,
Thanks & Regards
Mahendar Marri

Contract Labour , if engaged in genuine, sensible & effective manner can be very good tool for business management. Sunil Acharya
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