Could you please tell me that what are the obligations of the principal employer and contractor under CLRA Act, 1970.
From India
From India
1. Principal employer to ensure that he has obtained registration if he engages 20 or more contract labours
2. If any one contractor is engaging 20 or more workers, the Principal employer should ensure that the contractor has licence to engage contract labour and is renewed every year.
3. Principal employer to ensure that the contractor is paying wages (also ensure that he is paying at least the minimum wages fixed by the government) within seven days, the time as prescribed under the Payment of Wages Act. he should also ensure that the employees are getting facilities like canteen, rest rooms etc.
4. He should ensure that the contractor is duly paying the ESI and EPF in respect of employees engaged in his establishment.
5. Principal employer is not expected to employ contract labour in such activities which are perennial in nature and the same can be performed by regular workers. If he engages contract labour on work of regular nature there can be intervention by the Govt to prohibit such engagement. If prohibited the Principal employer should not engage any more contract labour.
6. The contract should not be a sham contract. A sham contract is one which is just for name sake but the control and supervision over the workmen will in in the hands of principal employer. If a contract is found to be sham, the workers can claim regularisation as permanent employees of the principal employer.
7. The Principal employer should not directly control the workmen of contractor. he should not become a party to any wage settlement between the contractor and his workmen. He should not initiate disciplinary action against the contract workmen nor should he be the authority to grant leave to them. All these will lead to declare the contract to be sham or camouflage.
Please go through a write up on the above in my blog following the given link.
http://madhu-t-k.blogspot.com/2010/1...ct-labour.html
Regards,
Madhu.T.K
From India, Kannur
41932. If any one contractor is engaging 20 or more workers, the Principal employer should ensure that the contractor has licence to engage contract labour and is renewed every year.
3. Principal employer to ensure that the contractor is paying wages (also ensure that he is paying at least the minimum wages fixed by the government) within seven days, the time as prescribed under the Payment of Wages Act. he should also ensure that the employees are getting facilities like canteen, rest rooms etc.
4. He should ensure that the contractor is duly paying the ESI and EPF in respect of employees engaged in his establishment.
5. Principal employer is not expected to employ contract labour in such activities which are perennial in nature and the same can be performed by regular workers. If he engages contract labour on work of regular nature there can be intervention by the Govt to prohibit such engagement. If prohibited the Principal employer should not engage any more contract labour.
6. The contract should not be a sham contract. A sham contract is one which is just for name sake but the control and supervision over the workmen will in in the hands of principal employer. If a contract is found to be sham, the workers can claim regularisation as permanent employees of the principal employer.
7. The Principal employer should not directly control the workmen of contractor. he should not become a party to any wage settlement between the contractor and his workmen. He should not initiate disciplinary action against the contract workmen nor should he be the authority to grant leave to them. All these will lead to declare the contract to be sham or camouflage.
Please go through a write up on the above in my blog following the given link.
http://madhu-t-k.blogspot.com/2010/1...ct-labour.html
Regards,
Madhu.T.K
From India, Kannur
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