Can a Foreign Director Be a Principal Employer Under Contract Labor Laws in India?

Hello,

Could someone please let me know whether a foreign director can be a principal employer for the purpose of the Contract Labor and Shops and Establishments Act? Such a director will reside in India only for a short period during a year.

Thanks and regards,
Amita

The Principal Employer is the one who is the owner and/or manages the business. Any person who is responsible for the supervision and control of the organization. A director who is a citizen of another country/NRI will also be held as the Principal Employer as he is one of the directors.

Saurabh

Dear Amita,

Director, maybe a foreigner can be an occupier of the factory, provided he has ultimate control over the affairs of the company. He should also fulfill other conditions like a residential address in India.

J. S. Malik

Dear Amita,

You have asked that a foreign Director can be PE for the purpose of CL (R&A) Act & Shops & Commercial Establishment Act. It is made clear that PE is only defined under The Contract Labour (R&A) Act, 1970. According section 2 (g) (ii), the definition of the PE may be read as under:
“in a factory, the owner or occupier of the factory & where a person has been named as manager of the factory under Factories Act,1948, the person so named.” & as per section 2(g) (iv) for any other establishment, any person responsible for supervision & control of the establishment.

Your unit seems to be covered under the Shops Act & according the definition of the PE for other Establishment the director can be declared as PE only when he responsible for supervision & control of the establishment.
Regards,
R.N.Khola


(Labour Law & Legal Consultants)
09810405361

Dear Amita,

Yes, he/she can be a PE even if he resides in India for a short period. It does not matter about the presence because he/she has other responsibilities too, such as marketing/business development, etc., so he has to travel.

In India, there are many MNCs where the PEs and directors are foreigners, and your company is under shops & establishments where it is allowed to work freely in India and capture all top positions because they have to maintain the quality of services. Overall, it is a matter of the responsibility of the occupier.

Best Regards,
Sajid Ansari

Hi,

Please inform me of any site where I may find the PF and ESIC challan format.

Regards,
AJAY KUMAR
9910805979