Navigating Contract Employment in India: Legal Requirements and Industry Practices?

Hi All,

With regards to contract employment, I would like to know:

1. If the Principal Employer could employ contract labor only if he is a legal entity in India? Are there any exceptions to this, and if so, what are they?
2. Is it obligatory to mention the Principal employer's address in the contract issued to the employee? If yes, then what is the minimum information pertaining to the Principal Employer that is to be mentioned in the contract?
3. Is it obligatory to issue the service certificate in Form XV only to the employee on completion of the contract? If not, what is the alternative? What is the industry practice falling under shops and establishments?

Hope to hear from you all.

Regards,
Rakhi

Dear Rakhi,

Your question is not clear, and you have asked questions that are irrelevant to the hiring of contract labor. If you want to hire contract labor/employees, you have to register your establishment with the labor department. After you are registered, your contractor will obtain a license.

The question you have asked is not to be fulfilled by the principal employer; you have to complete the registration formalities.

Thank you.

J. S. Malik