Harsh Kumar Mehta
Consultant In Labour Laws/hr
MANOKAVIN
Manager Hr & Admin
Malikjs
Gm (hr)
+1 Other

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Hi All ,
Today our Occupier of the factory have received a Show cause letter from Labor Dept mentioned that contractors are not replying some of there queries (Which is not true at all as we have seen the sent reply being principle employers ) . I want to know that can labor dept write a show cause letter directly to the Occupier in the case of Contract labor Act ? Is there any rule are having which can prove that Labor depts can show cause to occupier for Contract labors cases ? Pls put your view in this regard.
Regards
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1. Sir, please see Chapter IV of the Contract Labour (Regulation and Abolition) Act, 1970 vide which it is laid down that the contractor is required to obtain "a licence" from the Licencing Officer of the area as appointed under said Act. The term "opportunity of showing cause" has been mentioned in section 14 of said Act. But in this case as per detail in the thread, the show cause notice has been sent to the principal employer. If the licence of the contractor is cancelled, then the work of the principal employer is also supposed to be affected.Revocation of registration of principal employer in certain cases is laid down under section 8 of the said Act.

2. In the said Act, there appears to be no provision wherein the department cannot issue any show cause notice to the principal employer. However, it may be more better if it is clarified as to under which provisions of Act said Show Cause Notice has been issued and which short comings or defaults etc. of the contractors have been pointed out by the said department to the occupier of the firm.Kindly see section 20 of the said Act which provides for liability of principal employer in certain cases where contractor fails to provide some amenities to his workers.
Dear Awdesh
you have to be more clear about show cause notice as it is relation to which area.
in some areas definitely labour dept can ask principle employer.
suppose contractor has not paid wages to his employees than labour dept can you
as being principle employer it is your responsibility.
As per the act, labour dept has every right to intervene and safe guard the welfare of the workers..employer needs to justify with the answers asked by the dept.
Hai
Yes, the principal employer is responsible for all the activities of contract employees and if the contractor is not responding to the labour department queries they will send a show cause notice to the principal employer only on behalf of the contractor.
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