vikram-singh1
"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
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Nathrao
Insolvency N Gst Professional
+1 Other

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nathrao
3113

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
varghesemathew
909

What is principal to principal basis?
From India, Thiruvananthapuram
nathrao
3113

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
vikram-singh1
Mr. Nathrao, There is no clause preventing subcontracting.
From India, Kolkata
nathrao
3113

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
vikram-singh1
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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