Nathrao
Insolvency N Gst Professional
+1 Other

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"Party A" awards a contract for Material and Services to "Party B" on a Principal to Principal basis.
"Party B" enters an agreement with a contractor "Party C" for manpower supply.
"Party C" deploys its employees as contracts labour.
Party B is responsible for the supervision.
Services are rendered at the premises of Party A.
Query: Who is Principal employer.

From India, Kolkata
Principal employer will remain A.
A has entered into contract with B to give supplies and B has subcontracted it with C.
The relationship between C and A is only though B and there is no privity of contract between C and A.
Was there any clause preventing subcontracting.

From India, Pune
What is principal to principal basis?
From India, Thiruvananthapuram
Principal to principal contract means a contract where in both the people to the contract have entered into a contract in their own capacity with no agents in between.
From India, Pune
Mr. Nathrao, There is no clause preventing subcontracting.
From India, Kolkata
It would have been safe if no outsourcing was mentioned as a clause in the contract.
Notwithstanding this A has the liability a s principal employer.
All contracts must have certain vital details mentioned, depending on nature of contract.
Have a standard contract for such hiring contracts which cover you legally and is up to date as per legal provisions.

From India, Pune
Dear Mr. Nathrao, I forgot to mention I am Party B in the scheme of things. Thanks for your valuable inputs. Best Regards
From India, Kolkata
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