Registration Of Contractors

if a contractor does not registers in pf & esic, what are the problems that principle employer faces.

if a contractor does not registers in pf and esic....thn all the probles from labours/employees including accidents, terminatioon, pf and esic the principle employer would be responsible.....
the principle employer would be responsible for each and every employee through contractor...
regards
Beena

Hi, subarna,
As per indian contract act, If any establishment to be engage for contract labour primary they have to apply for licence and copy shall be provided to contractor from whom contract work carried upon. Later contractor shall apply for licence to lend service to principal employer. If contractor does not have valid licence, principal employer is liable for all future liabilities.
best regards
Chandrashekar
Bangalore

Mr. Chandrashekar,
Thanks for ur reply. But could u clear that labours working under a contractor dont work for a long time or in permanent basis then how they will utilize this fecility and the pf or esic deducted will be monitored.
With regards
Suborna

Dear Sir ji,
Pls tell me anyone who know the contrator licence procedure. How to get contract licence.
Regards,
Suresh Kaushik
08690135655

Hi, suborna,
For the purpose of coverage and ESI contributions defenition should be as per factory act. W.r.t PF, as per EPF act. Service period may be short or long.
best regards
chandrashekar
bangalore

Hi Suresh,
To get a contractors licence a form 5 needs to be filled and provided by the principle employer with their registration numer and duly stamped. That form further needs to be used for applying contractors licence with the requied fee depending upon the number of labourers employed. The form needs to be submitted to local labour comissioners office.
Regards,
Harpreet Walia

Dear CMS.Suresh,
Below are the forms to be submittted towards labour office for getting contract license.
Form-I Applicaition for Registration
Form-IV Application for License
Form-IV-A Declaration by Contractor
Form-V Certificate by Principal emloyer
Form-V-A Declaration by Principal Employer
FormXXI Annual Return to be submitted by Employer
You may refere contract labour Regulation & abolition act 1970 where you will get list of documents to be attached with the forms.
Hope this will be useful to yo.
regards,
Brijesh

It is desirable that the contractor registered with authorities under PF&ESI ACT and has his own code so that he has a direct responsibility and accountability for compliance with the provisions of the said statutes notwithstanding the fact that the ultimate responsibility lies with the principal employer as the definition of worker under the said Acts include the worker indirectly engaged through an agency.If the contractor has registered himself under the said acts, you can always contend that the contractor is an independent entity,has his own establishment, Employees,and direction and control of his employees lies with him and the principal employer is concerned with the ultimate result/outcome of the contract work assigned to him and it is for the contractor how and whatway he gets things done from his employees. But you should ensure that the principal employer has no say in the matters of recruitment, supervision and disciplinary matters of contractors employees and these aspect

hi
if an contractor does not register his contratual company in Provident fund or under ESI, then if any accident occurs or any benefit to be given to an employee cannot be made under the scheme. it will be the liability of the principal employer to be held liable for the same if the contractor is not registering under the act. Benefits cannot be obtained.
therefore it is better and safe and fullfil the statutory obligation on the part of contractor to register his company under the act.
regards
r devarajan