Hello Friends
I am searching that is it possible that there are two principal employers in a single factory ? I have contacted the labour authorities regarding this issue, he told me that It is not possible but he is failed to explain the Law under which he is saying like that.
Suppose X is a principal employer and it is registered under factory Act and Contract Labour Act at ALC (C) and he engaged a another agency Y which is also registered under State Government (DLC) and supplies man power to X . Y is issuing form V to his contractors (which is sub contractor for X). Is this practice valid ?

From India, Delhi
Insolvency N Gst Professional
Amit Keshari
Hr Professional


A “principal employer” as defined under the Contract Labour Act covers any person responsible for the supervision and control of the establishment. In the case of a factory, such person would include the owner or occupier of the factory or a manager under the Factories Act.
The definition itself precludes having more than one principal employer in a single establishment as it would diffuse responsibility and accountability.

From India, Pune
Dear Friend,
You want to know: Is it possible to have two principal employers in a single factory ? Ans is " No"
There are instances, that single factory splits into two units and each unit obtains licence from the authority as "Factory'' remaining within the same boundary but showing premises as separate. Under this circumstance Principal Employer is one for each unit.
The principal contractor can also issue the form V to the contractor[Y] engaged under or by Contractor[x] in consultation. But for all the purpose contractor[x] shall be remain liable to PE.
The firm [x] registered under Shops & Commercial Establishment is working under AB Co as a contractor. The Firm [x] can issue Form-V to [y] to obtain licence for his work. In the AB Co premises, AB Co is the principal employer for both X and Y, even though M/s X has issued form V.

From India, Mumbai

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