Dear all: As far as the XYZ company is concerned, the license of the contractor for 100 labour suffices as the deployment is limited to 100. But as regards the contractor, his license has to reflect the muster roll strength. So there is a need on his part to amend the license for a strength of 120.
The appointment of a contractor with less than 20 workmen is to be seen in the context of the establishment in which the work is actually done. If the establishment has twenty or more workmen, then the Act applies. A contractor having less than 20 workmen is not covered under the Act, but if the establishment is covered under the Act, the statutory authorities can seek enforcement of the Act against such contractors too. In such cases it is the liability of the principal employer for ensuring all compliances. Hence a safer option in all establishments with 20 or more workmen will be to have contractors who are licensed, having independent PF, ESI code etc. This will save the principal employer of liability of compliances.
Regards
KK