Dear Seniors,
I am working in HR in one construction company in Mumbai. In one work site, in our RC we applied for 1100 workers and 6 contractors and got it also.
One contractor with 700 workers in our RC got Licence for only 100 workers. He is asking us to amend our RC for 100 workers in his account. Labour Commissioner also telephoned us to ask us to make RC for 100 workers in contractor account. He called me in his office.
What I should do. Advise. Urgent Please.

From India, Mumbai
Sr Executive
Korgaonkar K A

korgaonkar k a

Dear Anonymous,

One of the contractors you have engaged has obtained licence for 100 workers but in your RC number of labours are shown 700 against his name.

Labour department is asking you to amend your RC with 100 workers against 700.

When your RC shows 700 workers against the name of any particular contractor, the said contractor should have granted licence for 700 workers only and not for 100 workers. The department has done it with some motive which is very serious in nature.

In this case the contractor is going to maintain all the relevant registers and records only for not more than 100 workers. Being HR professional you need to address the following questions under the said circumstances:

1. What you will do in case any worker meets with an accident when his name is not borne in the muster and not registered under ESI and BOCW?

2. How you are going to tackle any inspection by LEO / GLO?

3. How you are going to tackle various other authorities such as PF inspector, ESI inspector, Professional Tax Officer, Welfare Officer etc.? All those authorities do audit on the basis of your balance sheet / books of account.

4. How you will tackle any complaint by labour to any authority for non payment, less payment, no social security etc.?

5. How you / your contractor is going to justify the labour expenses against the wage bill maintained for 100 workers only?

If you amend your RC as per the contractor and labour department, you also will be responsible.

You have to write to the contractor as well the labour department to amend the license as per the RC issued to you. You need to demand the labour compliance from the contractor at actual. Please bear in mind that Principal is liable for any default by contractor. So be strict on compliance part. The labour department will not come for your rescue during problem.

From India, Mumbai

Always the contractor should be under the control of Principal Employer (As such the employer is giving business to him)or Either both Principal employer and contractor should co-ordinate with each other and go for license . As such in this case this shows the inability of the HR. My advise every time the principal employer should RC after getting license by the contractor . And ensure that the contractor not to cross Maximum no's on any day. So, that the contractor herself will go for ad dement of license.
From India, Visakhapatnam
korgaonkar k a

Dear Svramana88,
Do you mean to say that both PE and Contractor should agree to go for 100 workers in RC / Licence?
This query on urgent advise was not responded my any member for last 30 days. Once any member replies to any query, other members should either correct him if he is wrong else put additional information he has to share.
I am sorry to say this. Of-late I have restricted my self sharing my knowledge because of such things.

From India, Mumbai

As the PE will say his requirement to the Contractor and the contractor should do the same . Means the PE should have proper understanding On his requirement of Man power from the individual contractor.
From India, Visakhapatnam

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