Contract Labour Principal To Principal - CiteHR
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Dear Friends,
I need some guidance regarding contract labour,
What are the grounds for Establishing the relationship of principal Employer and contractor under the contract labor act?
Is payment made on the manpower basis a ground or are there any additional requirements.
Also does the Principal employer has the power to inspect the record of the Contractor.
Please share your valuable comments..

Dear Jit2bappa,
This is your first post eversince you became member of this forum.
If you read the definition of Princial Employer and Contractor as given in Contract Labour Act, you will not have any doubt on the grounds establishing the relationship of Principal Employer and Contractor.
PE is essentially a owner of premises or the business activity. Contractor is a person who undertake to produce a given result for PE through contract labour. (Detail definition please refer the Act).
Hope this is good enough for you to understand the grounds establishing relationship of PF & Contractor.
PE is responsible for Contractor's defaults. Therefore, PE has power to inspect the records of Contractor. Even there is a provision in Act by which the Contractor should make payment to his employees in presence of PE.

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