Industrial Relations And Labour Laws
Hr Officer

In our organisation which is a heavy engines industry, a highly reputed software company is engaged for implementation of SAP and allied services time to time. Now SAP is installed. Recently this software company has been given an order for some allied services related to SAP i.r.t. which 2 software engineers & 2 service engineered of that company will be engaged for 3-4 weeks. As based on this order those engineers who are onroll employee of that. Software co. will enter to our factory premises and will work for 3-4 weeks so i need following clarification,

1. whether it creates any principal employer and contract labour relation, as the employees involved are of very higher ranks and all are under the direct roll of that co.

2. What are the statutory compliances i need to ensure.

3. As this employees are getting very high salaries so naturally they are out of esi coverage. In such case do we need to ensure any other medical benefits for the people. Is any how employees compensation act is applicable in this case.


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In such cases the responsibility of the employer, ie, the company where the employees are engaged, will depend upon the contract of their engagement. Normally the contract for service will include a clause to this effect, say, the professionals deputed shall be given accommodation, food and travel at the cost of the client, the client shall be liable for any injury including death caused to the professionals while they are on duty at the client's premises etc. Therefore, the compensation etc will depend upon these factors and not by labour law.
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