Industrial Relations And Labour Laws
Raj Kumar Hansdah
Shrm, Od, Hrd, Pms
Working With Ngo
Hr Policies & Processes, Recruitment,
The contractor having an employee strength of 55 shall have separate licence issued by the District Labour Officer under the Contract Labour (Abolition & Regulation) Act. Since he himself comes under the definition of establishment, he should have taken registration under the Shops and Establishments Act also. Being a registered entity, he would have EPF and ESI coverage, though the employees engaged at work site are not covered by ESI.
If the relationship with that of the contractor is that of Principal employer- contractor, then you have to ensure that:
1. The contractor has obtained licence under the Contract Labour Act.
2. The contractor has covered all employees under the EPF.
3. The contractor is paying minimum wages to his employees in time.
4. The contractor is maintaining all safety measures.
5. No payment is made to contractor unless he gives statement of payment of wages, remittances of all statutory dues.
8th August 2009 From India, Kannur
To make it more clear, we are engaged in transmission/distribution of Natural Gas by unerground pipeline to consumers of Agra, Firozabad, Mathura ,Dholpur. And at each location a station is there i.e total 05 station. several machines, valves,regulators, generators,skids etc are there in each station. In-charge of these stations (we call it installations) is our regular employee. While Labour Intensive Jobs i.e regular maintenance of various machinieries at each stations(Installations) are outsourced by awarding the aforesaid Maintenance Contract to the Madhya Pradesh based Contractor.
I hope this will help in understanding the situation of ours more clear.
9th August 2009 From India, Calcutta
10th August 2009 From India, Coimbatore
Further; if you have taken separate registration under shos & establishment act at several states where your installations are working and you are paying them from that respective stallation, then you have to separate ESI code to be taken for each state if there 20 or more workmens are employed with the 10,000 or less than 10,000 gross pay.
Further; Principal employer is responsible for ensuring that his contractors are making legal compliance. If contractor fails to contribute towards PF or ESI, Principal employer has to pay for these.
I hope it may solve your query.
10th August 2009 From India, Gurgaon
This is with reference to your opinion that ".... the employees engaged at work site are not covered by ESI'.
I would like to know whether contract workers will be covered under the ESI if the site comes in the covered area.Would you please clarify?
10th August 2009 From India, Madras
10th August 2009 From India, Lucknow
Dear Mr. Madhu T.K., I would like to know the legal position in case of arrangements with Cleaning Service companies (for cleaning premises, washrooms etc.), and Office service (such as Photocopying, Fax, Courier & Messenger services, Driver, Housekeepers in company guest-houses etc.). Kindly give your opinion.
I also request our legal experts to provide their suggestions and opinions; as the sword of "perennial", "non-perennial", "240 days of continuous service" etc, always hangs over the employer, in addition to other contingent liabilities.
11th August 2009 From India, Delhi
11th August 2009 From India, Coimbatore
Number of employees for ESI coverage is 10 in the case of factories whereas it is 20 in the case of 'other establishments'.
Any labour involved voucher will attract ESI. Therefore, any payment made for housekeeping, gardeners, room cleaning arrangements etc will attract ESI.
If we include work of regular nature only under the purview of ESI/ EPF there will be no work coming under the regular nature. There will be a tendency to define all works as non perennial.
The matter of 240 days is a minimum fixed for the purpose of counting eligibility for various matters and as such that is a matter connected with service and not with contractors employees.
11th August 2009 From India, Kannur
As for 240 days continuous employment would entitle employee to enjoy benefits of permanent employees like social security as per provisions of I D Act and the orders in the disputes under this Act.
I would like to introduce PTRC-Peoples Training & Research Centre, based at Vadodara, is a voluntary organization mainly working on the issue of Occupational Safety & Health. Members are most welcome to visit its website-www.ptrc.info
12th August 2009 From India, Coimbatore
Would anybody answer the query?
12th August 2009 From India, Madras
Mr. Madhu Sir is very right, please be sure to take PF & ESI submission challan every month from contractor with the bill he proves. If contractor is not able to provide the challan of current month then you can ask him the previous month challan. Same time you should always veryfy wheather the contractor is paying as per the Shop & Establishment Act of that state.
Thanks & regards
13th August 2009 From India, New Delhi
The 240 days applies to employees on roll of the principal employer only. For the employees of contractor the employee- employer relationship is with their contractor and as such they can not have any claim of regularisation of employment with the principal employer for whom they work.
13th August 2009 From India, Kannur
13th August 2009 From India, Delhi
responsibility has been entrusted upon me to check and verify whether contractor is complying all the legal and statutary requirements or not. My company is a central govt. undertaking and therefore, subject to frequent audits. Apart from the case discussed i want to know that "can i compell the contractor to provide 240 days facility( i mean 240/12=12 days paid leave in the subsequent year) to his employees engaged in our factory".secondly "can i withhold his monthly bills for want of compliance to this 240 days facility."
NOTE: IT IS TO BE NOTED THAT CONTRACTOR HAS BEEN AWARDED MAINTENANCE CONTRACT(IRC).IT IS NOT A MANPOWER CONTRACT.
14th August 2009 From India, Calcutta
15th August 2009 From India, Coimbatore
I am in full agreement with the views expressed by you. To quote " on the other hand if the operations /business have not commenced, then the workers engaged by the contractor will not fall under the Principal -contracor's employee relationship."In a recent case the ESIC at Chennai have upheld the similiar views in the matter.May I request you to kindly elaborate on the subject , whether any ESIC circular/ guideline is there?
15th August 2009 From India, Madras
As a Principal employer, Nawaz has to ensure that the contractor is granting leave with wages to your employees engaged through contractor also.
16th August 2009 From India, Kannur
Gratuity is an amount payable to an employee who leaves the establishment after serving the company for a quite long period (5 years as per Payment of Gratuity Act) In order to make available the fund, there are schemes available so that the employer can contribute every year a sum so that when an employee leaves the same can be used without depleting the then liquid assets. For details, please go through the gratuity schemes of insurance companies.
18th August 2009 From India, Kannur
We have 6 employees covered under ESI and drawing salary less then 10000/- and the total strength of our employees is 18 and we have engaged contractors and they have more then 20 labour.
Kindly clarify that being a principle employer we have to get registration under ESIC Act or not
23rd January 2010 From India, Madras
24th January 2010 From India, Kannur
I had a small dought, if the principle employer having the ESI code for their employees,how it applicable to the contract labour,contractor has to take seperate subcode. Dont they need to have a seperate subcode?
24th January 2010 From India, Hyderabad
24th January 2010 From India, Kannur
25th January 2010 From India, Kannur
11th February 2010 From India, Kannur
#Anonymoussir; i have one doubt how a contractor register his labour under ESI and PF. How he pay their contribution. Regards
8th April 2016 From India, Mumbai
9th April 2016 From India, Kannur