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Dear All,
I am working in a manufacturing unit in Maharashtra, in this unit we have outsourced the work of providing manpower (non executives) to a third party under whose rolls all non executives (incl workers) are employed.
My querry is who shall be the principal employer under Factories Act or CLRA Act for the non executives working in our factory premises under the rolls of the third party?
My second querry is whether certificate of principal employer can be given to two emlpoyers who are working in the same premises?
Requested to kindly provide answers to my questions.
Best Regards
Arunabh Mukherjee
Assistant Manager - HR

From India, Mumbai
The definition of worker in Factories Act includes workers employed through contractors.Hence u r the principal employer under FA Act&CLRA acts. Varghese Mathew Labor/HR consultant TVM 09961266966
From India, Thiruvananthapuram
dear mr mukherjee
If the no. of workmen working under the contractor is more than 20, the CLRA is applicable and your co. will be the principal employer in that case. I wish to specify here that the definition of workman under the Factories act includes workmen employed directly or indirectly. This is relevant only when there is a question about who are the workmen of the factory. You need to apply for registration to the authorities. Establishment means .....any place where any industry, trade, business, manufacture or occupation is carried on, therefore if 2 separate persons are engaging contract labour in the same premises, then 2 separate registrations will have tobe taken.

From India, Pune
Dear Sir/Madam,
Thanks for your reply.
You are correct when you say that if contract workers are more than 20 then we become the principal employer and not the contractor.
However, in this case the contractor is providing services to the third party whom we have engaged in our premises to provide the services. Therefore, should'nt the third party be the principal employer for its contract workers. If this is so, then the question arises as to what are our legal obligations towards those contract workers since they are working in our premises.
You are again correct when you say that 02 seperate registrations shall be taken since 02 different persons are engaging contract labour in same premises, but is this allowable/tenable in law?

From India, Mumbai
dear arunabh,
Your intial query did not convey proper facts. Do you mean that your contractor has subcontracted the work? Pls elaborate the nature of work performed by all three of you so that proper advice can be rendered.

From India, Pune
Dear Sir/Madam,

Sorry for the late reply as I was not able to access the net. Coming to your questions pls find my reply

1. Our contractor is an organization which is a joint venture between a PSU & PVT company whose main work is providing services (manpower as well civil contracts) at power projects across the country

2. This contractor has employed the following

a) Non executives directly under its roll on annual contract basis, contract is renewed each year after completion of contract period. These non executives are deployed in our plant premises. Their wages are paid by the contractor, and it claims the same from us after loading its commission

b) It has further sub contracted mainly civil nature work to other agencies under whose rolls there are workers performing work, the compensation for the same is claimed by sub contractor from contractor who claims the same from us after charging its commision.

c) We as company have employed only executives whose salary are paid by us directly.

In light of the above pls render your advice as to the status of principal employer in the plant premises.



From India, Mumbai
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