Shravan DSS

Hi All,
Just wanted to know if someone can trace out any document/ official gazzette released by the government regarding the Liability of Principal Employer in engaging Contractors/ Sub-Contractors.
Would be of great help if you can just make it out.

From India, Hyderabad
Labour Consultant
Shravan DSS
Executive - Hr
Management Consultancy
+2 Others

Use factoHR and automate your HR processes

Mobile-first hire to retire HR and Payroll software that automates all HR operations and works as a catalysts for your organisational growth.


The CLRA Act and Rules specify the conditions of deployment of contract labour in any establishment. As per Rule 25(v) (b) The Labour Commissioner has power to specify the conditions of work etc in any employment. Pl consult the same with regard to the notification issued by the respective State Government in which the contract labour is deployed. Rule 25 of the Central Rules is attached for reference.
25. Forms and terms and conditions of licence.—
(1) Every licence granted under sub-section (1) of section 12 shall be in For m VI.
(2) Every licence granted under sub-rule (1) or renewed under rule 29 shall be subject to the following conditions, namely:—
(i) the licence shall be non-transferable;
(ii) the number of workmen employed as contract labour in the establishment shall not, on any day, exceed the maximum number specified in the licence;
(iii) save as provided in these rules, the fees paid for the grant, or as the case may be, for renewal of the licence shall be non-refundable;
(iv) the rates of wages payable to the workmen by the contractor shall not be less than the rates prescribed under the Minimum Wages Act, 1948 (11 of 1948), for such employment where
applicable and where the rates have been fixed by agreement, settlement or award, not less than the rates so fixed;
(v) (a) in cases where the workman employed by the contractor perform the same or similar kind of work as the workmen directly employed by the principal employer of the establishment, the
wage rates, holidays, hours of work and other conditions of service of the workmen of the contractor shall be the same as applicable to the workmen directly employed by the principal employer of the establishment on the same or similar kind of work:
Provided that in the case of any disagreement with regard to the type of work the same shall be decided by the Deputy Chief Labour Commissioner (Central)
(b) in other cases the wage rates, holidays, hours of work and conditions of service of the workmen of the contractor shall be such as may be specified in this behalf by the Deputy Chief Labour Commissioner (Central);
While determining the wage rates, holidays, hours of work and other conditions of services under (b) above, the Deputy Chief Labour Commissioner (Central) shall have due regard to the wage rates, holidays, hours of work and other conditions of service obtaining in similar employments;
(vi) (a) in every establishment where twenty or more women are ordinarily employed as contract labour, there shall be provided two rooms of reasonable dimensions for the use of their
children under the age of six years,
(b) one of such rooms shall be used as a play room for the children and the other as bed room for the children,
(c) the contractor shall supply adequate number of toys and games in the play room and sufficient number of cots and bedding s in the sleeping room
(d) the standard of construction and maintenance of the creches shall be such as may be specified in this behalf by the Chief Labour Commissioner (Central); (vii) the licensee shall notify any change in the number of workmen or the conditions of work to the licensing officer;(viii) the licensee shall, within fifteen days of the commencement and completion of each contract work submit a return to the Inspector,
The Contract Labour (Regulation and Abolition) Central Rules, 1971 appointed under section 28 of the Act intimating the actual date of the commencement or, as the case may be, completion of such contract work in Form VIA);
[(ix) a copy of the licence shall be displayed prominently at the premises where the contract work is being carried on];
[x) no female contract labour shall be employed by any contractor before 6.00 a.m. or after 7.00 p.m.:
Provided that this clause shall not apply to the employment of wmen in pithead baths, creches and canteens and so to midwives and nurses in hospitals and dispensaries.]

From India, Mumbai
May I know what if the contract labourer met with an accident and the liability of the principal employer in that?
From India, Coimbatore

In principle yes. However, now a days all Principal Employers ensures that contractors complies with all statutory requirements, including health & safety and coverage of all workmen under Employees' Compensation Policy before commencement of work. Some employers are not even issuing any gate passes before fulfilling the above requirements to avoid their liability.

From India, Thane

Dear Friend,
Mr KK has given a comprehensive desription to your querry.
In short Principal Employer is bound for all the laiability in case the contractor fails to comply that may be workmen compensation too, since the Principal Employer has got the registration for deployment of contract labour inside his premises. It is suggested to go thoroughly by the CL(R&A) Act,1970 for the clarity on subject.

From India, Mumbai
Shravan DSS

Hi All,
I really appreciate everyone's response. You have given great inputs in this discussion. Any further suggestions/internal discussions would be of great help. Thank you Mr KK for a detailed description and Mr Prabhat for briefing the same.

From India, Hyderabad
Ashishkumar Joshi

Good Evergreen Resources which i can refer at all times. I thank all for their valuable Contributions.
From India, Mumbai

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views.

About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2022 CiteHR®

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server