I have a suppliers in out side company's we have the written agreement for material supply. in this regarding suppliers employee esi & epf + compliance part fully they have it but the employee coming for supply under my premises in case of any accident who will be a responsible for that? and what procedure we follow their? and who will be notice to government official ?
and we have a the umbrella contract in company we are pushing suppliers to under this umbrella contract but the umbrella contract checking esi & epf + compliance part fully but their only verification. in case of any accident how to do further process can you explain somebody in experienced in this field.
Dear Sapthagiri,
As per contract labour act, ultimate responsibility goes to principal employer if the same is not provided and full filled by immediate employer. Whether, it is the matter to provide them shelter, rest room, canteen, first aid, safety, wages payment, compensetion or statutory compliance.
Dear Sapthagiri,
If you go through the definition of the term "contractor" u/s 2(1)(c) of the CLRA Act,1970 a little bit more carefully, I think you yourself can find the answer. Certainly, the definition takes in its sweep only those contractors who undertake to produce a given result for the establishment through contract labor or who supply contract labor for any work of the establishment and the term includes sub contractors also. Further, the definition explicitly excludes those persons having any contractual obligation to supply goods or articles of manufacture. Supply of materials can be done either through third parties like courier services or by direct personal door delivery depending on the terms of the material supply contract between the establishment and the supplier. In either case, employment of human labor is inevitable. Therefore, neither the contractee/establishment becomes a "principal employer" nor the contractor/material supplier becomes a "contractor" under the CLRA Act,1970.
The risks of employment accidents to which the material supplier's employees are exposed have to be naturally borne by the material supplier only.
Dear contributing members
I think the person replying to queries owes implicit accountability - so while you answer query please have proper understanding of law points, facts and reasoning, so that the knowledge seekers get the right information/solution and do not get mislead.
I hope moderators would agree with as since last few posts I see some straight, superficial layman's answers.
Shailesh Parikh
99 98 97 10 65
Vadodara
Dear concerned,
Every one has his own separate way to express and explain. Every person who keeps knowledge in some extent can put his insights to make the issue clear. But it is not fair enough saying layman's answer. We should always do own business and put best we can do.
Query itself is incomplete,
though after repeated reading it is still hard to understand that the person who gut injured in goods handling belong to .........a) supplier b) recipient c) logistic channel partner ........... and to whomsoever it would belong the principal employer has to ensure that they maintain the labour law formalities, otherwise accept the responsibility of same
In simple terms if it is to be explained, in case of failure of the contractor of his legal responsibilities stipulated under contract labour act,the principal employer is accountable.
I hope learned colleague will agree.
R R Kapoor
Vadodara
Dear friends,
The liability enjoined upon a Principal Employer under the CLRA Act,1970 against the omissions and commissions of a Contractor which affect the contract labor is in the nature of vicarious liability only. But such a vicarious liability arises only when there exists the relationship of PE and Contractor between the parties. As the contract to supply materials mentioned in the post is not a contract contemplated by the Act, no possibility of charging the Company which is just a contractee only with accountability for accident, if any likely to happen to the supplier's employees during the course of their employment..
If the contractor have insured his employees under ESI then the PE need not worry .The contractor has to report accidents. PE should incorporate necessary conditions in the contract.
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