Understanding Contract Labor: What Are the Key Rules and Regulations You Need to Know?

Hi all,

I want some clarification regarding contract labor. Please let me know all the rules and regulations related to the Contract Labor Act, such as their compensation, contractor's license, forms, principal employer certificate, related dates, etc.

Shafiqe........
Email: shafiq4u@sify.com 😊

Dear Shafiq,

Following are the compliances you must ensure under the labor laws for all the contractors:

- Form - I (Principal Employer to Register the Contractor)
- PF Registration of the Contractor
- WC Policy / ESIC - whichever is applicable
- Labor Welfare Fund (Dec & June)
- Labor License (If 20 or more workmen)
- Form - 13 (Register of Workmen)
- Form - 14 (Employment Card)
- Form - 16 (Attendance Register)
- Form - 17 (Wages Register)
- Form - 19 (Wages Slip)
- Form - 20 (Loss Register)
- Form - 21 (Register of Fines)
- Form - 22 (Advances Register)
- Form - 23 (Overtime Register)
- Form C - (Bonus Act)
- Form - F (Gratuity Nomination Form)
- ID Card Register
- Form - 19 (Leave Card)
- Form - 18 (Leave Register)
- Attendance Cards
- Salary to be done on or before 7th of the month under intimation of Principal Employer
- Form - 24 Half-Yearly return (Dec & June)

Do let me know if you need further help with this.

Regards,
Bhavin Vahia

Thank you, Bhavin.

There is still some confusion. For example, Form-1 (Principal Employer to Register the Contractor) is prepared by the contractor or the employer. Does the contractor have to obtain this certificate from the employer? How can one verify the contractor's license and its validity? What wages are to be paid to the contract workers?

Dear Shifiq ji,

Please see the attachment for your desired information. You may go through the Contract Labour Act tips.

Regards, PBS KUMAR

SEE THE CONTRACT LABOUR (R&A) ACT IN PDF FILE ATTACHED.

Dear Shafiq,

Form No. I is the registration form under the Contract Labour Act. It has to be filled out by the Principal Employer. It pertains to registration and the maximum permissible number of workers for the particular contractor. The contractor must obtain Form V from the Principal Employer, certifying that the Principal Employer has engaged this specific contractor for the work. Based on this, a license is issued in Form No. VI to the contractor, indicating the validity period of the license and the authorized number of workers.

Contract workmen must be paid in accordance with the Minimum Wages Act, using the wage rate applicable to your industry. You can verify this information with the local GLO.

Regards, Bhavin Vahia

Please clarify all the processes and forms. If possible, please attach the format. Additionally, could you provide information on where we need to contact to obtain a labor license as a contractor?

Dear All,

Could you please send me a format of an agreement made between a principal employer and contractor? Is it required to be done on any stamp paper? Please reply urgently.

Regards,
Jisha Prashant

Dear Jisha Prashant,

You are advised to contact any civil court advocate for this purpose. He will let you know regarding the stamp paper as well. You have also not mentioned the nature of the contract, i.e., loading & unloading, transport, canteen, gardening, general labor supplier, security, etc.

You have also posted this query on another thread.

Regards,

R.N. Khola

(Labour Law & Legal Consultants)
09810405361

Hello,

Can someone help me with providing inputs for preparing an attendance policy for contract laborers?

Awaiting a reply.