Hi,
Dear members, my company wants to hire contract labor through a contractor. Please tell me what is the "A to Z, all procedure" to hire the contract labor. What formalities do we have to complete, what returns and when we have to send them, where, what records we have to keep up to date and maintained? Please provide me with all the details about this.
Please reply soon. It's very urgent.
Regards
From India, Delhi
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9Dear members, my company wants to hire contract labor through a contractor. Please tell me what is the "A to Z, all procedure" to hire the contract labor. What formalities do we have to complete, what returns and when we have to send them, where, what records we have to keep up to date and maintained? Please provide me with all the details about this.
Please reply soon. It's very urgent.
Regards
From India, Delhi
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Steps:
1. Enter into a written contract with the contractor for a specified period, initially for one year. Mention in the contract the manpower required, type of work/areas where contract workers will be engaged, the rate of wages to be paid to contract workers, and the duration of the contract. If the work is on a piece-rate basis, mention the tonnage to be handled and the rate per ton of material.
2. Go to the office of the Commissioner of Labour, Delhi, and ask for the vendor form for the registration of the establishment and the form for the license to the contractor.
3. As an employer, you have to fill in the details in the Registration Certificate format.
4. Ask the dealing clerk about the fees to be deposited. The fee is based on the number of contractor workers to be engaged. Ask him for the challan through which the fees are to be deposited, either in the Reserve Bank of India or in the treasury. The challan will be filled in by the dealing clerk, and you have to get the signature of the concerned Labour Officer on that challan before depositing the same in the bank. Once the challan is endorsed by the Labour Officer, you have to ensure that the same is deposited in the bank within 48 hours; otherwise, you will have to get a fresh challan.
5. The RBI will return one copy of the (3 copies) challan to you. Take a photocopy of the receipted challan copy. Attach the original receipted copy to your application for the registration of the establishment. Retain the photocopy for records.
6. You will receive a certificate of registration of the establishment from the Labour Office within 15 days.
7. The employer does not have many things to comply with; he only has to send one ANNUAL RETURN by January 31 of the following year for the previous year, i.e., from the start date/month of the contract until December 31st (in the first year) and subsequently for the JAN-DEC period. If the contractor is discontinued in between, the employer has to inform the Labour Department of the same. If a new contractor is taken in place of the earlier one, the employer has to apply in the same format, requesting an amendment of registration. If the number of contract workers is the same as that of the earlier contractor, no additional fees are to be paid.
Contractor's License:
The contractor, if he is engaging more than 20 contract workers, has to fill in an application for a license. He has to attach with his application - Registration under the Shop Act or House tax receipt (if operating from home), a copy of the agreement signed with the employer, a copy of the insurance coverage, and the requisite fees. In most cases, to get the license early, he has to do SEWA.
The employer has to ensure that the contractor complies with the provisions of the Contractor Labour Act religiously. The contractor has to maintain the following registers:
a) Attendance cum wage register. (All columns are to be filled in religiously)
b) Register of workers - containing personal details of all contract workers
c) Attendance card (all entries are to be duly filled in), leave register, leave card, identity card
d) Records of PF deducted and remitted, paid challans, 3A, 6A, 12A Statements
e) Record of ESI Contribution cards, ESI Paid challan, and annual returns/compliances
f) Paid challan of service tax, professional tax.
The employer has to ensure that if the industry falls under the scheduled industry in the Minimum Wages Act, appropriate minimum wages are paid to contract workers. Nowadays, the administration (Labour Department) is very strict. They directly file a case against you in the Labour Court.
Most importantly, please ensure every month that the contractor has paid appropriate wages, deposited PF/ESI/Prof. Tax/Service tax, and get photocopies of the same for your records. Otherwise, the liability will be of the Principal Employer.
I feel almost everything that is needed has been informed. But if additional information is still required, you can reach me at 09372638920 or at sangsun_sadar@yahoo.com.
From India, Nagpur
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1. Enter into a written contract with the contractor for a specified period, initially for one year. Mention in the contract the manpower required, type of work/areas where contract workers will be engaged, the rate of wages to be paid to contract workers, and the duration of the contract. If the work is on a piece-rate basis, mention the tonnage to be handled and the rate per ton of material.
2. Go to the office of the Commissioner of Labour, Delhi, and ask for the vendor form for the registration of the establishment and the form for the license to the contractor.
3. As an employer, you have to fill in the details in the Registration Certificate format.
4. Ask the dealing clerk about the fees to be deposited. The fee is based on the number of contractor workers to be engaged. Ask him for the challan through which the fees are to be deposited, either in the Reserve Bank of India or in the treasury. The challan will be filled in by the dealing clerk, and you have to get the signature of the concerned Labour Officer on that challan before depositing the same in the bank. Once the challan is endorsed by the Labour Officer, you have to ensure that the same is deposited in the bank within 48 hours; otherwise, you will have to get a fresh challan.
5. The RBI will return one copy of the (3 copies) challan to you. Take a photocopy of the receipted challan copy. Attach the original receipted copy to your application for the registration of the establishment. Retain the photocopy for records.
6. You will receive a certificate of registration of the establishment from the Labour Office within 15 days.
7. The employer does not have many things to comply with; he only has to send one ANNUAL RETURN by January 31 of the following year for the previous year, i.e., from the start date/month of the contract until December 31st (in the first year) and subsequently for the JAN-DEC period. If the contractor is discontinued in between, the employer has to inform the Labour Department of the same. If a new contractor is taken in place of the earlier one, the employer has to apply in the same format, requesting an amendment of registration. If the number of contract workers is the same as that of the earlier contractor, no additional fees are to be paid.
Contractor's License:
The contractor, if he is engaging more than 20 contract workers, has to fill in an application for a license. He has to attach with his application - Registration under the Shop Act or House tax receipt (if operating from home), a copy of the agreement signed with the employer, a copy of the insurance coverage, and the requisite fees. In most cases, to get the license early, he has to do SEWA.
The employer has to ensure that the contractor complies with the provisions of the Contractor Labour Act religiously. The contractor has to maintain the following registers:
a) Attendance cum wage register. (All columns are to be filled in religiously)
b) Register of workers - containing personal details of all contract workers
c) Attendance card (all entries are to be duly filled in), leave register, leave card, identity card
d) Records of PF deducted and remitted, paid challans, 3A, 6A, 12A Statements
e) Record of ESI Contribution cards, ESI Paid challan, and annual returns/compliances
f) Paid challan of service tax, professional tax.
The employer has to ensure that if the industry falls under the scheduled industry in the Minimum Wages Act, appropriate minimum wages are paid to contract workers. Nowadays, the administration (Labour Department) is very strict. They directly file a case against you in the Labour Court.
Most importantly, please ensure every month that the contractor has paid appropriate wages, deposited PF/ESI/Prof. Tax/Service tax, and get photocopies of the same for your records. Otherwise, the liability will be of the Principal Employer.
I feel almost everything that is needed has been informed. But if additional information is still required, you can reach me at 09372638920 or at sangsun_sadar@yahoo.com.
From India, Nagpur
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Labr laws for Vendor compliance Management.pdf