Hi Govind & friends,
End of the day Principal Employer( PE) is liable for all non compliance of contractor. So, periodically PE should review his challans submitted with appropriate authority.
Befor enggaging contractors following facts should be considered always.
----Bfor awarding contract to contractor----------
Principal Employer's nature of business should not be same as contractor's.
Contractor should have PF & ESIC codes, verify the same with pf & esi deptt.
Principal employer must obtain a registration under CL(R&A) Act 1970.
Issue Form V to Contractor.
Submitt Form VI-B with appropriate Authority for commencement or completion of work.
--------Post awarding contract------------------
Ensure, contractor should obtain License under CL(R&A) Act 1970
Periodically verify the challans of PF, ESIC, LWF if applicable, Wage register, OT register, fine & advance register,
Form XII should be maintained by PE
Ensure that Contractor should submitt Half yearly return in Form XXIV
PE should send their Annual return in Form XXV
Do not supervise the labour of Contractor directly to avoid Employer & Employee relationship.
Do not issue similar I-Card, Appreciation letter or any communicatin on letter head of Co. to contractual workman.
Sign off Wage payment register that salary was disbursed bfor 07th of month in presence of management representative.
Ensure your contractor should comply with all labour laws applicable to him else PE will be responsible for same.
Ensure your contractor should have issued I-card, appointment letter, payslip, PF & ESIC a/c No. to all their employees enggaged by him.
Regards,.........Shiv