There are five main issues - - concept of principal employer, core and perennial work, industry restrictions, timing and location restriction, compliance philosophy and decentralisation and high mandatory payroll deductions - - that need immediate attention.
Due to these issues, there is blurred accountability with dual employer responsibility.
Here I would like to clear that Law does not recognise Sub-Contractor Only Principal Employer & Contractor are responsible for statutory compliances.
If the numbers of employees are more than required as per PF & ESI Act you will have to comply it. If contractor does not then Principal Employer is liable to comply.
N N Tiwari