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Asso.prof.(commerce & Management)
Rkn61
Hr Manager
Kritarth Consulting
Posh Programs; Hr Management Consultants
Bhartiya Akhil
Freelancer

If we discontinue the contract with a a contractor, should we informed to Labour department. If yes, is there is any specific "Form" to be filled by Principal employer ?
From India
Not Legally binding yet ensure that the Outging Contractor fulfills all his/her Obligations yowards theContract Labour engaged by the Registered Contractor.
Hars K Sharan,
Kritarth Consulting,
23.5.2020

From India, Delhi
Not necessary. But it is to be ensured that there shall be no legal/statutory liability from the side of principal employer. The contracts need to be discontinued with proper documentation to be signed by both principal employer and contractor, and a copy need to be retained by principal employer.
From India, Aizawl
Yes, you have to inform the labour department that if you have issued Form V to the contractor for obtaining labour licence.
The information to be provided by the principal employer . Check relevant Form under the state your establishment is existing.
[FORM VI-B
[See rule 81 (3)]
Contract Labour(R&A) Central Rules - 1971
Notice of Commencement/completion of Contract Labour
1. Name of the principal employer and address…………..
2. Number and date of Certificate of Registration………..
3. I/We hereby intimate that the contract work (name of work) given to (name and
address of the contractor) having Licence No …………….dated………..has been
commenced/completed with effect from (date)/on (date).
…………………………………
Signature of principal employer

From India, Mumbai
Yes, you have to submit necessary forms and also surrender/cancel the licence issued in his name. Ensure employees' obligations are settled fully including EPF/ESI, salary payment etc.
From India, Bangalore
Dear Friend Queriest,
You are a Principal Employer.
If you are holding RC under the CLRA having the name of the contractor to whom you discontinued, you need to apply for amendment of your RC deleting his name.
Under Central Rules and also under some of the States Rules it requires the Principal Employer to submit a notice of contract work commencement / contract work completion.
Additionally, it is advisable that the Principal Employer should ensure the complete compliance by the contractor. In case the contractor is in default of any compliance, the Principal Employer can be liable under the vicarious liability or other wise under certain circumstances.
Regards,
Akhil Bhartiya

From India, Mumbai
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