Navigating Contract Labour Law: What Documents Do I Need and How to Maintain Them?

Dear Seniors, could you help me regarding the contract labour law? What documents are required and how should they be maintained? Thank you.

Muster Roll, Wages Register, Deduction Register, and Overtime Register by Contractor

Every contractor shall:

• Maintain Muster Roll and a Register of Wages in Form XVI and Form XVII respectively when combined.

• Register or wage-cum-Muster Roll in Form XVII where the wage period is a fortnight or less.

• Maintain a Register of Deductions for damage or loss, Register of Fines, and Register of Advances in Form XX, Form XXI, and Form XXII respectively.

• Maintain a Register of Overtime in Form XXIII.

• Issue wage slips in Form XIX to the workmen at least a day prior to the disbursement of wages.

• Obtain the signature or thumb impression of the worker concerned against the entries relating to him on the Register of Wages or Muster Roll-Cum-Wages Register.

• When covered by the Payment of Wages Act, register and records to be maintained under the rules.

• Muster Roll, Register of Wages, Register of Deductions, Register of Overtime, Register of Fines, Register of Advances, Wage slip. Rule 79

• Display an abstract of the act and rules in English, Hindi, and the language spoken by the majority of workers in such forms as may be approved by the appropriate authority. Rule 80

• Display notices showing rates of wages, hours of work, wage period, dates of payment, names and addresses of the inspector, and send a copy to the inspector and any change forthwith. Rule 81

With Regards,

Vineet Deshmukh

Vineet has rightly elaborated on the documentation required. I just wish to add that there should be a proper contract agreement with the service provider, including elaborate clauses and indemnity. Additionally, the contractor should have a valid license from the authority, ESI, and PF code if necessary. Moreover, the employer should be registered with the local authority.

If a party is asking for a monthly compliance certificate and attendance of staff who are deputed at their sites, what is the procedure for them? The party has stated that they will release the balance payment after receiving the compliance documents. What procedure can we adopt for this?

The list of documents suggested by Mr. Vineet is absolutely correct. You are requested to follow those compliances, and your problems will be resolved. One more important thing: no employer can deny legal salary to any employee. Even if the employees are under contract, the salary is to be paid to them. Non-compliance can only lead to the curtailment of service charges in such cases.

Thanks and regards,

B K Majumdar
[Email Removed For Privacy Reasons]

If they ask, make sure to check if any previous executives have already provided such documents to them. If the documents have already been provided, then give them a xerox copy of the Wages Register where the workers have signed upon receiving their payment.

Kindly read the Contractor Labour Act before taking any action.

First Point: Understanding Compliance Requirements

First, understand why they are asking about compliance and documents. All documents are required, such as the contractor registration number (if more than 20 workers/12 months) to the salary slip (due to the salary slip, it is a must for all employees/workers).

Again, I am telling you to first read the Contractor Labour Act (including minimum wages).

Regards

Compliance with CL(R&A) Central Rules 1970

Vineet has rightly elaborated. Kindly go through Rules 72 and 73 of CL(R&A) Central Rules 1970, which are mandatory for the Principal Employer to ensure that his authorized representative is present at the time of wage disbursement by the contractor.

The authorized representative of the Principal Employer shall record, under his signature, a certificate at the end of the wage register with the following endorsement: "Certified that the amount shown in column No......has been paid to the workmen concerned in my presence on......at.........."

With thanks and regards,

Regards, RL Dhingra
Advocate, Labour Law Consultant, Delhi
[Phone Number Removed For Privacy Reasons]
Email: [Email Removed For Privacy Reasons]

I would like to know how you are determining the salaries of your workers who are working at any site. If it's a register, then it's a photocopy or software, then print duly attested by the L.O. along with ESI and P.F. challans. I think it's more than sufficient. Giving a salary slip to contractual manpower is not practically possible, so it's the best solution.

Regards,
Sandeep Thakur

A principal employer always asks you for the following:

1. Monthly salary statement duly signed by your employees as proof that you have paid them their salaries.
2. Bank receipt copies of PF, ESI, and PT monthly Challan as well.

These are the statutory requirements for the principal employer.

Regards,
Ratikanta Rath

If you are a contractor with 20 or more employees, then as per the CLRA Act, you must obtain a Labour license. For this, you will need:

1. Form V from the Principal Employer.
2. A completed Form-IV.
3. Employee details.
4. Challan copy in favor of the Assistant Labour Commissioner from your region at Union Bank.
5. Security challan, i.e., 100*No. of Employees you are going to engage.

For any further information, feel free to discuss.

Regards,
Ratikanta Rath