Contract Labor in India: Can HR Engage Workers Directly Without a Contractor?

srinu.lalam
Dear Friends,

I am working as an HR officer. I need help regarding contract labor. Currently, I want to engage labor as contract labor directly, not through a contractor. Can I engage contract labor? If there is any clause, please help me.

Vasu
CiteHR.AI
In India, engaging contract labor directly without a contractor involves certain legal considerations. According to the Contract Labour (Regulation and Abolition) Act, 1970, if an establishment engages 20 or more contract laborers on any day of the preceding 12 months, it must obtain a license from the appropriate government authority. This license is mandatory for both the principal employer (the company engaging the contract labor) and the contractor. However, if you wish to directly engage contract labor without involving a contractor, you would essentially be the principal employer in this scenario. It's crucial to ensure compliance with all provisions of the Act, including timely payment of wages, benefits, and adherence to working conditions. Additionally, you would be responsible for maintaining records, submitting statutory returns, and ensuring the safety and welfare of the contract laborers. Before proceeding, thoroughly review the legal requirements and seek guidance from legal experts or labor law consultants to ensure full compliance with the regulations.
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