What action to be taken legally as a HR professional when a contractor violates labour rules?

executor
Has anonymous disappeared after posting his/her problem? I have noticed this trend. My friends, everyone here on CiteHR is taking time out from their schedules to help you, the least one can do is acknowledge; if not present counter points/arguments. Is this frivolous attitude the actual reason behind the so called "non compliance?"
jadhav2011
Dear,
You find your way or talk to your superior. If you realize your contract is fails to willing statutory comply then terminate his contract after hiring of new contractor.
DRC_2011
Dear Friend,
In cases where you find Contractor is voilating the required statutory rules under CLRA,then follow the guidelines given below:
1. Check the agreement your company had with the contractor to ensure that you have mentioned the clause whereby all the statutory rules as per CLRA should be followed by the contractor.
2.If the same is missing in your agreement ,amend the same to include the caluse.
3.Give the contractor specific timeline for taking corrective measures.
4.Audit to find out the compliance at the end of timeline.
5. If the contractor still donot follow the guidelines , issue notice & terminate the agreement citing reasons of non compliance so that he cannot approach court for seeking justice.
suhaskhambe
Dear Anonymous,
Hold bills of that contractor until he makes all the statutory payments and produces proofs to you. or deduct the dues from his bill and pay the dues yourself. and after doing this if does not agree to comply with legal standards then, terminate his contract.
Kalijanni
If all Contractors are violate the Rules , can you remove all the contractors
It is not a solution
we being a HR Professional first create awareness about the rules and regulation of CL (R&A) act. and inform them what is the reciprocation, if violate the rules .
Educate the contractor how to maintain records and registers
witness the wage payment and observe day to day Contractor activity and point out the deviation and enforce till rectifying the same.
if we do the above activity sincerely we can get good result, every contract prepare to maintain all the records and registers and violation come down
Kaleswara Rao
boss2966
Dear Anoop
What is the system being followed in your company. How the contractor is getting his bills paid.
Please hold the cheque and instruct the contractor to submit all relevant documents as per your requirement.
If you are thinking of only PF Part, then you are having the daily workforce details with you and accordingly prepare their paysheet as per minimum wages and deduct the PF & ESI and you can directly remit on the contractors PF Account Code.
Shailesh Parikh_HR Pro
Dear Anoop
I appreciate reply from Shri Bhasker. Adjustment of money towards compliance liability of contractor becomes regular feature- repeatedly he is found defalulter, Balck List him- Do not engage him for any business.
It is always important and necessary to check credentials of contractors in adition to his technical competence.
Regards
Shailesh Parikh
Vadodara, Gujarat
99 98 97 10 65
anup.synergy@gmail.com
Documents like WC Policy, ESI , PF , Third party liability Policy & Car Policy are mentioned in the contract. Some contractors are submitted only ESI. They are arguing that it is having the coverage of WC Policy.
Some contractors donot have labours at site. Contractors Engineers may be working at site for 1 or 2 month. They are submitting group mediclaim policies instead of WC policy. Can we accept this.
boss2966
Dear Anoop
Please confirm whether your construction site area is under the ESI Notified Area. If so, then you can ask for ESI otherwise it is not required. Further CAR Policy will be enough and the Third Party liability policy may not be required. Once you are covering them with ESI, then you need not to bother for WC Policy. But for those who are drawing more than Rs.15000/- for them you can ask them to submit the WC Policy/Group Personal Accident Policy.
For PF, the contractors has to submit the PF Registration Certificate, and every month they have to submit the PF Chalan alongwith the ECR Filed data.
YageshSharma
Dear
Deduct the statutory liability like ESI, PF etc. of employees engaged by the Contractor from its due payment and with consultation of management go for termination of agreement as per the terms of the agreement after selecting the Contractor for giving the service .
Rgds
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