Dear folks, Our establishment (fabrication engineering sector ) is newly going to engage contract labours next month onwards under CL act.
Total contract labours (needed) : 48 nos , which is split of under 5 contractors (ie., each contractors have 9 labours).
Note : These contractors do not have license and ESI PF registration.
My queries are as follows,
1. Should every contractors get separate ESI & PF registration? ( Act says 20 or more would be eligible)
2. Should every contractors get separate License? (Act says 20 or More workers would be eligible).
3. or will both ESI & PF registration and license be taken on total labours engaged by principal employer (ie., 48 nos).
pleaes clarify on above queries as early as possible.
26th December 2018 From India, Madras
If the Contractor did not have the ESI and PF Code. Then the contract labours will be recovered ESI and PF on the Principle Employer’s code number. It is always better to engage a contractor who has his own ESI& PF code.
27th December 2018 From India, Madras
Dear Gobikannan,
This is a common question by many organization that in case contractors are engaging people 9 or below - is it necessary to have PF, ESI etc. for them.
Please note that those contractors will work in the premises of PE which is covered under PF, ESI etc. Therefore what Mr. Babu Alexander has been suggested is the best suggestion and better to implement the same.
Thanks & Regds.,
S K Bandyopadhyay(Howrah, WB)
+91 98310 81531

27th December 2018 From India, New Delhi
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