Navigating Contract Labour Act: How Should EPC Companies Handle Staff Records?

Dear Seniors, I have some queries regarding the Contract Labour Act. I'm presenting my doubts in the following example.

Company Overview

XZY Pvt. Ltd is an EPC (Engineering, Procurement, Construction) based company with its headquarters in Hyderabad. They undertake projects in various locations across India. Currently, I am working at one of its sites as an HR professional.

We have the contract license for our site. Our client is "123 Ltd." We have the CL license for 50 members. Our total staff includes high-skilled, skilled, semi-skilled, and unskilled workers (such as PM, QC engineers, HR, Accounts officers, Site engineers/supervisors, welders, riggers, cooks, and company drivers), totaling 30 members who are on the payroll of XZY Pvt. Ltd. We do not have any subcontractors. We hire some local labor (unskilled workers) based on our civil and mechanical work needs (not on a continuous basis). Additionally, we have a few hired vehicles, JCBs, and Hitachis. We do not exceed the limit of 50 members on any day.

My Queries Are As Follows

1) Can I show my staff in Form XVI & XVII under the CL Act, as we don't have any subcontractors?

2) If we have subcontractors, they will obtain the CL license for our work and handle the statutory requirements under the CL Act. During this time, what records should we maintain for our staff (30 members)?

3) If question no. 2 applies to us, what records should we show to our principal employer, i.e., "123 Ltd."?

4) If I'm not working in the site area and am working in the headquarters, how should I consider these 30 members? Should I show them under the S&E Act along with other headquarters staff, as they are on the company payroll?

Please clarify my doubts.

Thanks & regards,

Vishwanadh

I received your private message, and I hope this helps you.

1) Can I show my staff in Form XVI & XVII under the CL Act? As we don't have any subcontractors?

Yes. Every contractor shall, in respect of each work on which they engage contract labour, maintain a Muster Roll and a Register of Wages in Form XVI and Form XVII.

2) If we have subcontractors, they will get the CL license for our work and look after the statutory things under the CL Act. By that time, what records should we maintain for our staff (30 members)?

3) If question no. 2 applies to us, what records have to be shown to our principal employer, i.e., "123.ltd"?

Either you shall have the license, or you shall maintain the documents like Form XIII, XVI, XVII, XXIII, PF deductions, nil register, if you are able to produce the license holder during the inspections. You should maintain all the documents, and I suggest it is good to be well-documented. There are no problems with extras, but you always end up with trouble in case of one missing document, so maintain all in line with other contract labourers.

4) If I'm not working in the site area and working in HO, how should I consider these 30 members? Should I show them under the S&E Act along with other HO staff as they are on the company payroll?

Yeah, S&E is applicable to the payment of wages.

After asking the above questions, you cannot ask "how to consider the 30 members!" If you fail to know that, then you fail to understand anything regarding that. Know the basics and ask serious questions, please. Do some research; never opt for easy ways!

Thanks for your reply and suggestions. Actually, I'm experiencing confusion in maintaining the records under the CL Act. In my previous company, we maintained all site employees' data (from project manager to site helper) in Form XVI & XVII and other forms under the CL Act. There, we did not have any local or subcontract labor. We paid all salaries by bank from the Head Office.

Now, I have shifted to a new company where the industry and work culture are the same. However, here our Manager says we should not show the company roll's staff information in Form XVI & XVII, and should only show civil labor details under the CL Act. He confirms that the staff data will be maintained by the Head Office under the S&E Act. Therefore, one employee will not be covered twice under any acts (S&E and CL). So, we are maintaining the data for our casual labor under the CL Act.

This confusion has led me to put forth this query.

Thanks & Regards,
Viswanadh