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Dear All,
We are a real estate company. In one of our commercial property, the management of parking area have been allotted to a vendor/party on revenue sharing basis e.g. we have made an agreement with the party that they will manage the parking zone and for that they will appoint specific number of people and will pay us a fixed amount on monthly basis.
My question is whether such relation between us and the said party falls under Principal Employer & Contractor relationship and thus comes under the compliance of Contract Act?

From India, Calcutta

The definition of workman under CLRA is wide :

(i) "workman" means any person employed in or in connection with the work of any establishment to do any skilled, semiskilled or un-skilled manual, supervisory, or clerical work for hire or reward, whether the terms of employment be express or implied, but does not include any such person--

(A) who is employed mainly in a managerial or administrative capacity; or

(B) who, being employed in a supervisory capacity draws wages exceeding five hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature; or

(C) who is an out-worker, that is to say, a person to whom any articles or materials are given out by or on behalf of the Principal employer to be made up, cleaned, washed, altered, ornamented, finished, repaired, adapted or otherwise processed for sale for the purposes of the trade or business of the principal employer and the process is to be carried out either in the home of the out-worker or in some other premises, not being premises under the control and management of the principal employer.

Establishment is again defined like this:

(e) "establishment" means--

(i) any office or department of the Government or a local authority, or

(ii) any place where any industry, trade, business, manufacture or

occupation is carried on;

Even if you consider the Agency to be an Independent Contractor ,you need to check and insist of all Statutory Compliances.As long as the Agency is compliant even if there is any issue you can tackle it boldly.


From India, Madras
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