Outsourcing Employees: What Documents Are Needed Under the Contract Labor Act?

We want to outsource 26 employees to one consultancy firm. I have a doubt:

1. Does that consultancy also come under the Contract Labor Act?
2. If not, which documents do we have to collect from them?

Kindly suggest.

Regards,
Nagaraj

You can contact Ms. Debjani Mishra of Manpasand Manpower at [Phone Number Removed For Privacy Reasons]. We have outsourced many people to Manpasand Manpower across the country and found them to be very professional and up-to-date with all the labor laws. I am sure she will be able to help you with your requirements.

Regards,
Kabir

Yes, consultancy services also come under the Contract Labour Act if the number of employees exceeds 20.

Regards,
R.S. Pagad
Advocate

Really good posts introducing new consultancy firms, but there are no proper answers provided in these posts. Should the payment be directed to them? If so, will they handle their pay, ESI, and other benefits? Can we deduct TDS from them? Are they willing to submit the necessary forms? Mr. Bhaskar has raised these questions.

Consultancy and Legal Compliance

1) The consultancy also falls under the Labor Act.

2) For any firm, it is mandatory to ensure all legal compliances. So when you are outsourcing, you can ask for the related registration copies like PF, ESI, etc.

3) Also, obtain the PF account details of your contract employees.

4) Obtain the ESI cards for contract employees wherever applicable.

5) Service Tax registration is applicable.

6) Include a clause in the contract that requires the submission of copies of payment challans for PF and ESI on a monthly basis.

Regards,
VGKVKM

I am attaching a PDF here. Please go through it as it covers all the necessary information.

Regards.

List of Documents to be Submitted by the Contractors:

1. Copy of the work order issued to the contractors.
2. Copy of the PF Code Allotment Letter.
3. Attendance/Wage Sheets for all the months, duly signed by the contractor as well as the site in-charge.
4. Copy of the invoice submitted by the contractors.
5. Copy of PF Challans on a monthly basis. The number of employees shown in the challan should tally with the wage sheet of each month. If PF is paid for more than one location, then a site-wise summary for all the months should be submitted.
6. Copy of the Monthly PF Return (12A, 5/10) duly acknowledged by the PF Authority.
7. Copy of ESIC Challans. The number of employees shown in the challan should tally with the wage sheet of each month. If PF is paid for more than one location, then a site-wise summary for all the months should be submitted.
8. Copy of Pro Tax Challans.
9. Original Indemnity Bond on Rs 200/- Stamp paper as per the format attached herewith, duly notarized once every two years.
10. Undertaking on the contractor's letterhead as per the format enclosed herewith.
11. Payment made for LWF for the above period.

If anything is missed or not done properly, the principal employer is liable to pay any damages.

Hi Professionals, can someone tell me about the register to be maintained for contractors by the principal employer? Who is it to be signed by?

Thank you in advance.

Regards,
Francis