Dear All, Please let me know the liabilities of the principal employer in terms of HR statutory liabilities like PF, ESI, gratuity, bonus, leaves, Labour welfare, etc. My organization is registered under the Shops & Establishment West Bengal, so need guidance in reference to it.
Kindly reply at the earliest.

From India, Mumbai
Dear Sonia,

Your use of the term 'principal employer' in the query leads to a confusion whether you are engaging contract labor in the establishment.

In case of engagement of contract labor through a single or more no of contractors and the no of all such contract labor aggregates to 20 or more, your establishment has to get registered u/s 7 of the CLRA Act,1970 as principal employer and you have to ensure that every contractor providing 20 or more no of contract labor gets licence u/s 12 of the Act, covers them under ESI and EPF Acts and pays statutory minimum wages. Section 20 and 21 of the CLRA Act,1970 enjoin vicarious liability on the principal employer in respect of the amenities prescribed under sections 16 to 19 and payment of wages respectively.

In any other case, the liability vests with you as the employer provided the respective Acts are applicable to your establishment.

From India, Salem

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