Normally Principal Employer does not allow a contractor to engage further contractor for the job. In case main contractor is engaging contractor it will be treated as sub contractor and liabilities of Statutory Compliance lies on main contractor only.
As far PF, ESI or WC is concerned if Sub contractor is having code/policy there w'nt be any problem but ensure that he is depositing the contribution with authority.
N N Tiwari
28th July 2007 From India, New Delhi
30th July 2007 From India, Korba
the main contractor in this case is simply a conduit to award of contract.. he must be hiving off the work into small portions for small contractors/ freelancers etc..
first question: sourcing strategy of the organsiation should take inot account the track record of the contractor. refer to various tenders of Govt of India. the prerequitistes for a contractor are many-- financial/ infrastructure/ organsiation track record etc....
Has your company formulated a "Vendor Code of Conduct" n vendor assessemnt council..
am sure not..
check the website of Michigan university for the same
b) "Ethical trading Initiative" gives good guidelines on the same.
I have personally worked in a situation of ameliorating the labour conditions wherein there are 6-7 levels of subcontracting and then freelancers etc..
if you are unable to understand, think about thousands of poor women juggling housework plus embroidery/ hand work on garments from several contractors...
The challenges are multiple: many layers of contractors and volatile labour..
how do we provide basic benefits for the poorest workers at the end of the road..
First we map the entire network down to the last migratory population worker. next have a log of each individual homeworker alomng with contact details/ work and payment details etc..
we use Multi stakeholder initiative in these scenarios to give social benefits to workers eg 25 % each of the share is paid by four principal parties namely Buyer/ Client, principle employer in india, main conractor and then the worker...
The above is the best model as each n every stakeholder understands his role and fulfills his duties.
let me know if you req further help
14th August 2007 From India, Delhi