Statutory Complaince/labour & Employment
Payroll, Domestic Inquiry, Administration,
Hr Officer

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In our factory the radiography job is outsourced to an vendor as outwork. The vendor takes out the plates from our factory to their places, does the radiography and return the material to us. Such work comes under the definition of Outwork under CL(R&A) act and does not come under any compliance provision as per CL(R&A) act. Please guide me on this whether this is correct or not. Further is their any other compliance (e.g. PF/ESI) that we might need to ensure or that we need not to ensure or take any resposibility as its an outwork. What statute states?
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You are right in your approach, such contract is contractor for service, and employee of such contractors are out workers, you have not liability to comply with CLRA Act, niether other compliance under EPF/ESI or EC act. You don't have any control or supervison over the work done by contractors, it squarly falling under the definition of out worker-
(C) who is an out-worker, that is to say, a person to whom any articles or materials are given out by or on behalf of the principal employer to be made up, cleaned, washed, altered, ornamented, finished, repaired, adapted or otherwise processed for sale for the purposes of the trade or business of the principal employer and the process is to be carried out either in the home of the out-worker or in some other premises, not being premises under the control and management of the principal employer.
The agency who undertakes such radiography works are licenced and the Dept of Atomic Energy issues certificate to them. They don't engage much manpower but licenced technicians. You are not liable for any statutory compliances in their premises.
Dear Essykkr,
I have same problem as mentioned by PON. The some of our work is given to the out side vendors, who takes the goods and do the manufacturing at their site and bring back the finished goods and take their amount. As you said that it does not need compliance of PF / ESIC on our part. But all these expences is shown as 'Labour Charges' in Balance sheet as per accounting standards.
But during the ESIC Inspection, the official said that it is our responsibility to deduct PF / ESIC, if the Job Contractors does not have PF / ESIC No.
Just need your input on the same, if you can justify that we are not needed to be compliant on PF /ESIC of Job contractors.
Avinash K.
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