What Are the Key Legal Duties of Factory Employers When Contractors Hire Over 20 Workers?

Statutory Obligations for Principal Employers in Factories

The principal employer in a factory has specific statutory obligations to fulfill when a labor contractor employs over 20 individuals. These obligations are crucial to ensure compliance with labor laws and regulations, as well as to protect the rights and well-being of the workers. It is essential for the principal employer to understand and adhere to these obligations to maintain a safe and fair working environment for all employees involved.

Please go through the bare acts of the Factories Act, 1948, and the Contract Labour (R&A) Act, 1972 for details.

With regards,
Madhusudan

Statutory obligations of PE under CLRA are as follows:

1. Obtain RC. Amend it as and when required. Renew it every year.
2. Issue Form V to contractors who are liable to apply for a license.
3. Maintain a register of Contractors.
4. Certify the payments to contract laborers made in his presence.
5. Submit an annual return every year.

Statutory Obligations of PE Under Other Laws Besides CLRA

Ensure that the contractor makes proper compliance with applicable labor laws to him as well as to PE. Whatever labor laws are applicable to PE are automatically applicable to the contractor's labor, irrespective of the labor engaged by the contractor.

Hope I have made it very clear to you.

Regards