Labor License Dilemma: Am I Responsible for Staff Provided by an Unlicensed Consultant?

Dear,

Can anybody let me know if some of the staff are provided by my labor consultant and he has no labor license, how far am I responsible as the principal employer?

Can you elaborate on the subject so that I can be helpful in explaining the subject? For further queries, please feel free to call back.

Regards,
Ravikumar S
9892028625

Dear Raviji,

In my call center, all salary and staffing issues were outsourced to a labor consultant who managed everything from attendance to salary. Now, if he does not have a labor license, what is my responsibility as the principal employer?

As a principal employer, you need to check whether the labor contractor has a labor license or not. If he does, then you need to allow him to work. You may be taken to the Labor Court if you do not comply with labor laws.

R/Sir,

If the number of laborers employed by you is more than 20, then you need to have a registration of contract labor from the Labor Commissioner under the Contract Labor Act. You must also ensure that all legal formalities like PF, ESI, and minimum wages are being paid to the laborers; otherwise, all liabilities of compliance shall lie on the principal employer.

Hope the info is of some use.

Regards,
Anubhav

Anubhav is right. If you have employed more than 20 employees through a contractor, then first of all, you have to register yourself with the labor department. Also, ensure that the contractor does the same. You have to issue Form V to the contractor; only then will he be able to apply for a labor license.

Dear all,

Besides LL & RC, the contractor has to pay MW, deduct PF, ESI (as more than 20), LWF & P tax, and maintain related records; lest the principal employer is responsible.

Shrikant

I want to write a letter to the Commissioner of Labor for a new labor license registration. Please advise me on how I can write this letter.