Contract with a vendor-Need Guidance - CiteHR
Legal-siddharthindustries
Admin & Legal Officer
Jeeni
Assistant Human Resource Manager

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Dear All,
We have a well known Trusts at Assam who has engaged the services of once contractor from my company for housekeeping services since Feb 2018. The monthly billing is appx 590,000/- and they are providing housekeeping services by deploying 45 people at site
The trust has not yet entered into any formal agreement with the contractor. The Trust is directly with the the Govt of Assam for the cancer patients and the Govt. will be on Board from next month.
Would it be possible that we as a company can enter in to labour contract with the vendor for the trust (As trust is of the group), the labour is working on the site of the trust only.
If yes, then what is the process to follow in this case? What is the legal obligation on us as a company?
Regards
Ranjeet

Yes all compliance under CLRA has to be done starting from Form V and starting the Job after getting a Licence.
Dear,
The answer of your is itself in your question. You said that "Govt. will be on board from next month". I feel from your post that State Government will contribute OR allocate some grant towards the expenses incurred by the trust. In our State i.e. Gujarat it is mandatory to invite e-tenders for the said purpose. It is not advisable to employ workers for trust with out getting prior written approval from respective State Government. You are advised to please check the terms & conditions on which the Government is allocating funds to trust.
A. Prakash

Dear Praksh,
The government will not contribute anything to the trust for the manpower or for anything else. It is the group which will take care for everything.
Regards
Ranjeet

Dear, Please refer your trust deed there must be specific conditions laid down in it and if not then please do not deploy any labour before executing Contract Agreement. In such an event your trust will be treated as Principal Employer. You are further advised to obtain various registrations from man power agency as to registration of agency with respective government authority. agency's P.F. number, E.S.I. number. P.T. registration number, agency's & labourers bank account numbers etc.
A. Prakash

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