Navigating Vendor Contracts: Do These Labor Laws Apply to Your Situation?

Saptarshi
Dear All,

It is requested to place suggestions on the following issues:

Vendor Job Contract and CL (R&A) Act Compliance

1. When a job contract is issued to a vendor for the installation of an air conditioner in our factory and for the timely breakdown maintenance of the same, will it not come under the purview of the CL (R&A) Act as the work is not of a regular nature? However, is it mandatory for the vendor to comply with PF and ESI provisions for any worker of the vendor who will be entering the factory premises, regardless of the number of services and manpower involved?

Civil Contract Labor Cost Requirement

2. In the case of any civil contract, is it mandatory that the labor cost should be at least 20% of the bill value? If so, is there any notification or circular in this regard?

Regards,
dg
korgaonkar k a
Answer to your Q. No. 1: It is mandatory for the vendor to comply with PF and ESI.

Answer to your Q. No. 2: There is no law that says the labor cost should be a certain percentage of the work value. You should be able to justify it.
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