Labour Law & Hr Consultant
Industrial Relations
Executive Human Resource At Emcure Pharmaceuticals
Sr. Manager-hr &ir
Esi & Pf Consultant
Korgaonkar K A
Start Up Consultant
+5 Others

Thread Started by #Anonymous

Please give your knowledge on what action to be taken legallyl as a HR professional when a contractor refuses or does not comply with the labour rules.
5th July 2013 From France, Cergy
Dear Anonymous,
You being a HR professional fail to perform your duties up to the expectation of your superior, what your superior is expected to do? The same thing you are suppose to do here.
The contractor should be heard first and given an opportunity to improve himself. You have a right then to terminate his contract. Now please do not ask for draft termination letter.
6th July 2013 From India, Mumbai
First You advise him to fullfill all statutory obligations failing which, don't settle his bill unless he is getting ESI CODE/EPF CODE.
This is the simplest solution.Why you are taking legal action time is waste
Note: If any one approaches your employer for contractorship,you demand to get ESI8/EPF /LABOUR LICENCE.
Otherwise,don't consider
6th July 2013 From India, Madras
Dear Anonymous,
Please talk to the contractor as to why he is not willing to comply with labour rules. Is there any difficulty he is facing from principal employer's side or sheer negligence and evasive tactic? Explain him the consequences of not complying with labour rules and extend all possible help to resolve the issue. Also, if you have engaged more than one contractor, intimate all of them to strictly comply with labour rules and let the non-compliance of labour rules by contractors does not implicate you.
With regards,
6th July 2013 From India, Vijayawada
Introspect - are you paying him too less? In your pursuit of getting the best rates, you may have hired a contractor who will compromise on ethics and mandatories. Did you make your demands for statutory obligations clear before the project was awarded? Decent contractors, if told beforehand of their obligations, will build that into costs. However, if your decision was made solely on "rates" - you may have pushed your contractor into a corner.
If you have done everything right - just issues a show cause letter, demand an audit (if your contract allows it) and if found guilty - stop paying him pending course correction window. If he continues to violate contract; terminate the contract and move on.
If the fault is in your system; issues revised requirements, make it time bound, renegotiate, include audit clauses - and proceed as above.
6th July 2013 From India, Mumbai
Pls verify the agreement you made with the contractor, if not issue the waring letter , with some days grace period for corrective action plan...after the period still he is not follow the rules , better you close the contract and avoid the legal activities turn against you....
6th July 2013 From India, Madras
Labour rules are statutory. Contract and Contractors are guided by Contract Labour Regulation and Abolishion Act 1970. No agreement is above labour laws. Any failure in adhering, contractor in the first instance and principal employer are wholly and finally responsible. You are playing main role, Hence, where is the question of contractor not complying with rules and regulations. All your actions are as per CLRA. If Principal Employer and Contractor work hand in glove, Labour Authorities step in to check the violations for correction and punishment.
7th July 2013 From India, Nellore
Dear anonymous friend,
I think that though you are a HR Manager charged with the basic responsibility of ensuring adherence of statutory rules and regulations relating to the labour working in your industry and being aware of the fact that the particular contractor lacks legal compliance in this regard in which case you have vicarious liability as the principal employer, you are still hazy in course-correction means some thing else is there.May be that particular contractor wielding high influence over the top-brass of the company and what else could be there for your hesitation? Anyway, since it is your duty to ensure legal compliance, ultimately you will be held responsible when some legal action is launched by the State Enforcement Authority and therefore my suggestion is that there should be no laxity on your part. Bring the fact to the notice of the chief.
7th July 2013 From India, Salem
Dear Anonymous,
First of all please come with your proper identity to an intellectual forum like CITE. However, to look to your problem, please understand that the non compliance of contractor to Labour law legislations like Minimum wages, PF & ESI, not only his responsibility but also of the mater. May the rates you are providing is too less for him to maintain the workforce. Discuss it out immediately orelse please terminate and blacklist him. As once he is caught by labour officials while doing this, you will also have a liability. Act fast on the same and come to a resolution.
11th July 2013 From India, Delhi
Well, it’s so simple. Initially, you can warn him and give some to improve and then if you do not find any improvement in their work then simply you can end the contract or terminate them.
11th July 2013 From India, Lucknow
Has anonymous disappeared after posting his/her problem? I have noticed this trend. My friends, everyone here on CiteHR is taking time out from their schedules to help you, the least one can do is acknowledge; if not present counter points/arguments. Is this frivolous attitude the actual reason behind the so called "non compliance?"
11th July 2013 From India, Mumbai
Dear, You find your way or talk to your superior. If you realize your contract is fails to willing statutory comply then terminate his contract after hiring of new contractor.
12th July 2013 From India
Dear Friend,
In cases where you find Contractor is voilating the required statutory rules under CLRA,then follow the guidelines given below:
1. Check the agreement your company had with the contractor to ensure that you have mentioned the clause whereby all the statutory rules as per CLRA should be followed by the contractor.
2.If the same is missing in your agreement ,amend the same to include the caluse.
3.Give the contractor specific timeline for taking corrective measures.
4.Audit to find out the compliance at the end of timeline.
5. If the contractor still donot follow the guidelines , issue notice & terminate the agreement citing reasons of non compliance so that he cannot approach court for seeking justice.
12th July 2013 From India, Mumbai
Dear Anonymous,
Hold bills of that contractor until he makes all the statutory payments and produces proofs to you. or deduct the dues from his bill and pay the dues yourself. and after doing this if does not agree to comply with legal standards then, terminate his contract.
12th July 2013 From India, Mumbai
If all Contractors are violate the Rules , can you remove all the contractors
It is not a solution
we being a HR Professional first create awareness about the rules and regulation of CL (R&A) act. and inform them what is the reciprocation, if violate the rules .
Educate the contractor how to maintain records and registers
witness the wage payment and observe day to day Contractor activity and point out the deviation and enforce till rectifying the same.
if we do the above activity sincerely we can get good result, every contract prepare to maintain all the records and registers and violation come down
Kaleswara Rao
12th July 2013 From India, Guntur
Dear Anoop
What is the system being followed in your company. How the contractor is getting his bills paid.
Please hold the cheque and instruct the contractor to submit all relevant documents as per your requirement.
If you are thinking of only PF Part, then you are having the daily workforce details with you and accordingly prepare their paysheet as per minimum wages and deduct the PF & ESI and you can directly remit on the contractors PF Account Code.
12th July 2013 From India, Kumbakonam
Dear Anoop
I appreciate reply from Shri Bhasker. Adjustment of money towards compliance liability of contractor becomes regular feature- repeatedly he is found defalulter, Balck List him- Do not engage him for any business.
It is always important and necessary to check credentials of contractors in adition to his technical competence.
Shailesh Parikh
Vadodara, Gujarat
99 98 97 10 65
12th July 2013 From India, Mumbai
Documents like WC Policy, ESI , PF , Third party liability Policy & Car Policy are mentioned in the contract. Some contractors are submitted only ESI. They are arguing that it is having the coverage of WC Policy.
Some contractors donot have labours at site. Contractors Engineers may be working at site for 1 or 2 month. They are submitting group mediclaim policies instead of WC policy. Can we accept this.
12th July 2013 From India, Trivandrum
Dear Anoop
Please confirm whether your construction site area is under the ESI Notified Area. If so, then you can ask for ESI otherwise it is not required. Further CAR Policy will be enough and the Third Party liability policy may not be required. Once you are covering them with ESI, then you need not to bother for WC Policy. But for those who are drawing more than Rs.15000/- for them you can ask them to submit the WC Policy/Group Personal Accident Policy.
For PF, the contractors has to submit the PF Registration Certificate, and every month they have to submit the PF Chalan alongwith the ECR Filed data.
12th July 2013 From India, Kumbakonam
Deduct the statutory liability like ESI, PF etc. of employees engaged by the Contractor from its due payment and with consultation of management go for termination of agreement as per the terms of the agreement after selecting the Contractor for giving the service .
12th July 2013 From India, Delhi
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