Consultant Documents (Very Urgent)

Hi All,
Need some help with regard to contractors who provide consulting services to the company. Would like to know if any document has to be maintained by the HRD for such consultants and if yes what are those documents.
Regards,
Simmi.
P.S - the guy has joined our firm on friday and is here for a month.

Hi,

If you engage contractors, first of all, pleasure ensure the following :

1. The contractor should have registered under factories act or shop and establishments act and should carry a registration number.

2. He should have extended ESI coverage for all his employees (whoever comes under the purview of the act). You need to get his ESI registration number.

3. Similarly, PF registration number.

Get a list of companies for whom he is providing this service and try to get opinion about this contractor from them.

Please understand that it is the responsibility of the Principal employer to take care of contract workers. Law will penalise you on any non-compliance & you may later on enter into your contractor's shoes, but that is cumbersome.

If you have finalised on that contractor, every month before paying his bill, get a copy of ESI & PF remitted challan for those employees who are working in your company and after due diligence, make your payment. Ofcourse, this is an activity of finance. Yet, if you enter into with a contractor who does not have registration in the above areas, you end up in problem.

Do revert if you need any further assistance.

Dear Hema,
What I understand from your email is that most of the things has to be done by the Finance department(ESI,Registration number, PF account etc). There is nothing in particular that HR has to take care of. Is it right?
Simmi

Dear Simmi,
It is not the Finiance department that takes care of these matters. It is the primary responsibility of the HR & Admin department to have the ESI, PF and Insurance details.
Regards
Vani