We have a factory license. We have engaged a contractor to build a compound wall at one of our sites, and the contractor is registered under the BOCW Act. My query is, does privilege leave apply to contract labor under BOCW?
The BOCW Act provides for only a paid holiday in every period of seven days (Section 28 [2]). This would be the weekly holiday. Other than this provision, there is no separate provision for any Privilege Leave.
Application of Leave for Contract Workers in Factories
The BOCW Act does not apply to work done in a factory, so the Contract Labour Act will apply. Since it is in a factory, contract workers will get leave of 1 day for every 20 days worked. You may call this PL or Annual Leave.
When you engage contract labor, check whether the contractor has registration as per the act. However, do not get involved in the approval of the contractor's employees' leave. Leave this matter to the contractor.
Note: As Saswata Banerjee pointed out, PL/AL is applicable as per the CLRA Act.
I would differ on this point. Under the Payment of Wages Act, the principal employer is liable for the payment of wages. Wages include the payment of wage salary (defined in the Payment of Wages Act). Therefore, the principal employer must check whether the contractor is paying leave wages. However, I think a simple verification of their procedure to ensure it is done is enough; you don't need to monitor their leave process as such.
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