Does a foreign company working as a contractor in india and hiring subcontractors need to register under BOCW and CLRA - CiteHR
Labour Law & Hr Consultant
Pan Singh Dangwal
Joint Manager

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When a Company XYZ enters india as a contractor and hires a sub contractor from india, do they (Foreign Co. XYZ) still need to register under BOCW and CLRA given the employee strength is less than 10. Also, what about ESI and EPF?
I need this information it for a thesis.
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Any foreign national or company doing any business in India by employing Indian citizens are bound to comply with the provisions of Indian Labor Laws applicable to such entity.
My question was whether the Foreign company, who is the contractor, needs to register in CLRA if the employee strength is less than 10? Also, the sub-contractor and the Principal employer have CLRA and BOCW respectively. Thank You
If the contractor company employs or employed on any day of the preceding twelve months 20 or more workmen, then the CLRA would be applicable to said company. In Maharashtra, the words “20 or more workmen” has been substituted by “50 or more workmen” (notification dated 05th Jan 2017).
Similarly, if the work comes under the preview of BOCW Act, than BOCW Act is applicable.
In your description it is cleared that CLRA Act is not applicable to the said company as the employee strength is less than 50 or even 20. However, you are bound to comply under BOCW in respect of your on roll employees. This is so because the sub-contractor already complying for their employees.
The PF-ESI has nothing to do with the contract or sub-contract. If the foreign company's employees overall strength comes under the preview of the ACTS, than PF-ESI will also applicable.
For more clarification, please put specific query so that learned members can throw further light on the matter.
If the Principal Employer has BOCW registration mentioning the name of Contractor (In this context its Foreign Co. XY), will the Contractor(Co.XY) still need BOCW registration with employees les than 10?
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