Contract Labour And Their Impacts - CiteHR
Hr Manager
Bhardwaj Ramesh
+1 Other

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Please anybody tell me about Legal,financial and Administrative impacts if we shift from on roll employees to contract.
So anybody help me out that what are the legal requirements needed to have contract labour in the factory.
Is contractual labour is paid by PF,ESI,LWW and Bonus also....
What are other impacts if we switchover to contract labour.
Neeraj Sharma

Dear Mr.Neeraj,
You can easily switch over to contractual manpower.
Important Points
First you have to make full and final of the employees to whom you want to put on contractor' rolls.Their dues as notice pay and other benefits you have to pay.
If No of employees are more than 100 then you have to take prior permission from the Labour Department of such intention
Form No. 5 have to be issued to engage the contractors. The Concerned contarctors shall use this for their registration formalities in the Labour Department
ESI and PF provisions shall be applicable on contractual employees also.
By putting the employees on contractual rolls you will not be free from your responsibilities as a Principal Employer.
All the records as Form No 26, PF,ESI Returns and Challans and other statutory records have to kept by the Contractor and copies of the same by the organisation for inspection purposes.
The point to be noted is that you shall act as PRINCIPAL EMPLOYER.

What is the lww (contract Labour) Pl. Explain. Pravin Kapade Tiger Hr Solutions Pvt Ltd Aurangabad. Maharashtra. 9673337306
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