dear sir,
My friend has started man power suppliyer agency and he is having PF & ESI code No.He approaced x company, and they are production company for automobiles.Now the x company asking aggreement format for suppling man power to the comapany, the aggreement shall include the details of PF, ESI, BONUS, & other welfare and wage details.Kindly advise me or send some aggreement format for above said reason.
With Regards
S.Madhan Raja.

From India, Madras
Dear Mr.Madhan Raja Usually the Principal Employer will give a draft agreement to the contractor. If you could upload a draft I will try to offer my views on it With regards
From India, Madras
Dear All,
Most of the friends versions some how correct. I am also trying to share with you all. Here the first thing is PRINCIPAL EMPLOYER, CONTRACTOR. & SUB-CONTRACTOR. If the Contractor has to give his work earlier alloted one to his sub, the the first contractor has called as Principal Contractor. While issuing the Form-V to his sub-contractor by the contractor. The Form-V should be signed by the Principal Employer and Principal Contractor. For clarification please see the attached diagram.
If I am wrong please clarify.

From India, Kakinada

Attached Files (Download Requires Membership)

Dear Sirs,

my opinion and practice is that:

a. Form V can only be issued by the Principal Employer, who is the non but as defined by Mr. Jacob Samuel above.

b. As per CLR(R&A) Act'70 status of a contractor and a sub contractor is same, if the work order issued to main contractor does not contain any clause barring issuance of Form V to a subcontractor, as it is done sometime for avoiding risk of poor performance by an incompetent subcontractor.

c. If work order clause permits main contractor to engage subcontractor to execute a portion of the job( not only mere supply of manpower), the main contractor has to apply for approval by the Principal Employer to engage the subcontractor with company credentials and details to ensure the expected job performance ability. If approved, then the application of the subcontractor for Form V to the PE have to be recommended and forwarded by the main contractor. The main contractor has to indemnify the PE for conforming performance of the subcontractor( A sample of Indemnity Bond is attached for kind reference). If the PE is satisfied, there is no problem in issuing Form V to a subcontractor.

Thanks & Regards,


From India, Calcutta

Attached Files (Download Requires Membership)
File Type: doc SPECIMEN OF INDEMNITY BOND.doc (23.5 KB, 611 views)

Thank you abuhrd for sharing the Indemnity Bond.
But for this also the PE has to endorse the names in the Register of Contractors maintained in Labour Commissioner Office for the given subcontractor. Hope then only they can issue Form V.
Can you Please clarify.

From India, Kumbakonam
Thanks to all for valuable information regarding CLRA.
Myself also wants to share my opinion regarding it,
1. The Principal Employer should mention name of sub contractor in agreement of main contractor, means give a permission to sub let the contarct.
2. In this case we can mention Contractor as well as Sub contractor name in CLRA RC application with number of manpower, it will reflect in CLRA RC also.
3. Now after receiving CLRA RC, Principal Employer can issue Form V ( Certificate of PE) to sub contractor.
4. On behalf of this RC, Form V & agreement with PE & main vendor sub contractor can get Contractor License from authority.
If any one have different views , pls. share.
Manoj prasad

From India, Mumbai
Dear Sir,
Thanks for your reply, here Z is a Princpal employer and X is a contractor.And Z is asking contract agreement from X for supplying manpower.the agreement should contain the details of pf,esi,bonus,welfare,minimum wage details,etc(for automobile industry)

From India, Madras
Dear Mr.Madhan Raja You are right. The details mentioned by you have to find a place in the agreement. With regards
From India, Madras
Mr Biswal,principal employer is the person who is responsible for supervision & control of the establishment.For factories -manager,for mines also manager.Establisment defined u/s 2e of the Act.Naturally, a contractor /subcontractor can not be the principal employer.Pl refer section 2c of the Act.U/s 2c both contractor & sub contractor are to be treated as contactor and contactor can not be the principal employer employer and thus he can not issue Form V to sub contractor.Only PE having Registration u/s7 can issue FormV subject to provision U/s10.PL check applicability cl U/s1(4) &(5) of the Act before any compliance in respect of this Act.Goutam Majumder 27-8-2011.
From India, Suri
@Mr.Boss & Mr. Manojprasad,

Thanks for your comments. definitely, whenever PE issues a Form V to a contractor or a sub-contractor, it is recorded in the statutory Register of Contractors maintained by the PE.

@Mr. Manojprasad-ref. yr point:

1: the job/work contract issued by the PE need not to contain name of the sub-contractor(s). there should be just a provision that sub-contracting will be allowed. the main contractor however will have to issued work order and execute agreements/bonds to/with his sub-contractor, with copy to the PE, as per their terms and conditions but must fulfilling all statutory provisions of labour laws of the land.

2. Practically speaking the CLRA RC is taken once mentioning an approximate max no. of CL that may be engaged in next few years. However to ensure that the formal intimation of change in the particulars of number of CL and engagement of new contractors is given as per relevant state/central rules read with Sec. 7 of the CLRA Act 70 towards inclusion of particulars of New Contractor engaged, the Registering / Licensing Officer may be endorsed with a copy of every Form V issued, requesting him to make necessary amendment in the Register of Contractors.

3. So, issuance of Form V to a sub-contractor is done beforehand, expecting License wil not be rejected.

Further, in the Work/Job Contract clause the PE may even allow to engage 3rd level or more levels of sub-contractors, depending upon the scope of work and may issue Form V to those also.

Thanks & Regards,


From India, Calcutta

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views using the reply box below. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone.

Please Login To Add Reply →

About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2021 CiteHRô

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server