First of all, you must register yourself with the labor department as the principal employer before you engage any contractor at your establishment.
Secondly, make sure you engage a contractor who has valid registrations for PF, ESIC (WC), P. Tax, LWF, shop & establishment license, trade license, Service Tax, and preferably a party who has an existing contract for manpower deployment so that the party can provide you with the Contract Labor License.
Now, once you are through with the agreement with the chosen party, ensure that you issue the work order for manpower deployment. As soon as the contractor reaches the critical size for labor license, issue to his name FORM V so that the party can apply for the labor license for your establishment.
Ensure that the contract workmen are paid wages not less than the prevailing rate of Minimum Wages and are covered under statutory benefits like PF, ESIC, WC, Bonus, LWF, and other applicable enactments. For this, you must make it compulsory for the contractor to maintain the following registers and must produce the Challans for PF & ESIC remittance for the previous wage month, i.e., the invoice for the wage month of July must be accompanied by the copy of PF & ESIC challans for the contribution for the wage month of June. Without the said documents, the invoice should not be settled.
Documents to be maintained by the contractor:
I. Register of workmen Employed
II. Muster Roll
III. Register for Fines
IV. Register for deductions for damage and loss
V. Register of Advance
VI. Register of Wages
VII. Service Certificate
VIII. Monthly challans for PF, ESIC
IX. Half-Yearly return for ESIC
X. Annual Return for PF
XI. Half-yearly return for Contract Labor
XII. Half-yearly return for LWF
If you are interested in engaging a contractor, you may also consider our expertise in the said scope of actions. We can assure you of the best service and intentions at all points in time.
Regards