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Hello, to all
Dear friends I have joined this fourm to day and it is realy good fourm for HR professionals.
My quarry is regarding the contractor.
If a contractor has awarded work, which was originally awarded to him, to another party/contractor then whose name should appear in the register of contractors to be maintained by principal employeer? also the liabilities as in respect of PF deduction and submission to PF authorities will be done by the original contractor or the second party?

Mr. Paliwal,
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

the contractor to whome form V has been issued would be the in the register of principal employer.All liabilities primerily goes to him in absence of compliance,liability goes to PE.
Two dissimiliar pronged strategy


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

surya vrat


Dear Mr Paliwal, I suggest you must read the Work Order and find out if there is any clause of Subletting the contract futher mention in your work order. Regards, Bhavin Vahia
My query is Suppose we engaged driver & we made agreement with them directly (4-5 Nos.) in that case also we are under labour contract act ( We Deducting Contractor TDS )
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