Harsh Kumar Mehta
Consultant In Labour Laws/hr
Epf & Esi Matters
Asst Manager - Hr
Korgaonkar K A
+1 Other

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Hi, i need to collect a declaration letter from security contractor, by stating that he will be responsible for statutory compliances and principal employer is not responsible.
please forward to me any suitable formats pertaining to this.
Jayasimha H.

Dear Jayasimha H.,
Please keep it in mind that no declaration will help you i.e. PE.
Rather, I would further say, you should first pay the contractors as per the norms and then insist the compliance from them. If they do not make, hold the bill and get the proper compliance from them.
Here I do not mean that you are not paying as per norms.
Also please be noted, I will be the last person to say that you first pay me as per norms and then only I will make proper compliance.
Hope my answer to you is not confusing one.

In almost all labour law legislations "Principal Employer" is responsible for any violation and there are provisions of criminal and civil actions for said violation and lapses.
The contract entered into or any declaration obtained in violation of any statutory enactment is void ab initio and not enforceable in any court proceedings.

I said the same thing but in different way.
I said it intentionally. I see, many PE do not pay as per norms and they expect the compliance. Contractors enter in to such agreement. There is no option with them. But such agreements are void ab initio and both the parties to it are liable.

Thanks for appreciating my remarks. At the time when the question arises for fixing civil and criminal liabilities for any violation of labour laws, the contractor or immediate employer is no where traceable and vanishes. It is only the "principal employer" which has to face all consequences - both civil and criminal.

Dear Sir, you may add the required line in the Agreement itself while engaging a contractor. You may refer to any book on Drafts and Pleading for the Format of required agreement. Or, you may refer the Labour Law Reporter where all such drafts are published in monthly journals .
You can download it from any of the legal sites also .
As said above by others in their views, Principal Employer will always be responsible for compliance of contractor employees specially when the contractor is not having his own code numbers in EPF , ESI and other statutory authorities .
AK Chandok
RPFC (Retd.)

Dear Mr.Jaisimha,
Refer to your query,pl note the following.
1. When ever the contractor approached you for obtaining Licence, the principal employer issues Form V containing, the contractor should abide all the norms as per CL(R & A) Act -1970 Rules.In addition to that, the principal employer has also issued a Joint Undertaking with the work order for obtaining Licence from the concerned authorities with in one month before commencing the contract as per agreement made with terms & conditions by the principle employer.
Thanks & Regards,

Dear Jayasimha H.,

Your question on declaration by contractor, I said no such declaration will work or no such declaration will help you.

The contractor is legally bound to make the proper compliance whether he gives you a declaration or not. However, if he fails to make proper compliance, you being PE, responsible and liable jointly and severally even you have any kind of declaration by him. And therefore I said no such declaration will work.

However, you can take undertaking and indemnity from the contractor by which the contractor undertakes to make proper compliance of applicable laws from time to time and indemnifies you in case of any damages / loss to you by his any default. Labour Law or any Law as such is very vast subject. One can miss-out some thing and because of that there is some damage / loss to you, you can always have indemnity as suggested by me.

Before insisting indemnity by contractor, you must know what are the laws applicable to you and what are your responsibilities and liabilities under the applicable laws. You need to hire the service of a person like me who can help you in all regards. You can get from me not only legal advise but also any kind of service such as providing manpower, security guards etc. with proper compliance. But you have to pay my cost to me. You can go through my both the websites as given below my name.

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