Managing Contract Labor: What Are the Legal Implications and Benefits of Expanding Teams?

A. S. Baghel
I am working in a Pvt. Ltd. company as an HR head in West Bengal. There are 8 contractors engaged in our manufacturing unit. Under each contractor, there are approximately 40 employees/laborers/workers working.

Questions for HR Experts

So, my questions for all HR experts are:

1. Can we increase the number of employees to more than 40 under one contractor?
2. In that case, according to the law, who is responsible for ESI, PF, and EPF contributions of contractual laborers working under contractors?
3. What would be the advantages and disadvantages of increasing the number of employees to more than 40 under one contractor? What does the law say?
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