How Do I Get a Security Contractor to Confirm Responsibility for Compliance?

Hi, I need to collect a declaration letter from the security contractor stating that he will be responsible for statutory compliances, and the principal employer is not responsible. Please forward to me any suitable formats pertaining to this.

Regards,
Jayasimha H.

Please keep in mind that no declaration will help you, i.e., PE. Rather, I would further say, you should first pay the contractors as per the norms and then insist on compliance from them. If they do not comply, hold the bill and ensure proper compliance from them.

Here, I do not mean that you are not paying as per norms. Also, please note that I will be the last person to say that you should pay me first as per norms before I make proper compliance.

I hope my answer to you is not confusing.

In almost all labor law legislations, the "Principal Employer" is responsible for any violation, and there are provisions for criminal and civil actions for such violations and lapses. The contract entered into or any declaration obtained in violation of any statutory enactment is void ab initio and not enforceable in any court proceedings.

I said the same thing but in a different way.

I said it intentionally. I see many Principal Employers do not pay as per norms and they expect compliance. Contractors enter into such agreements. There is no option for them. However, such agreements are void ab initio, and both parties to it are liable.

Thank you for appreciating my remarks. When the question arises regarding fixing civil and criminal liabilities for any violations of labor laws, the contractor or immediate employer is often untraceable and disappears. It is only the "principal employer" that has to face all consequences—both civil and criminal.

Kind regards

You may add the required line in the Agreement itself while engaging a contractor. You may refer to any book on Drafts and Pleading for the format of the required agreement. Alternatively, you may refer to the Labour Law Reporter, where all such drafts are published in monthly journals. You can also download it from any of the legal sites.

As mentioned by others in their views, the Principal Employer will always be responsible for the compliance of contractor employees, especially when the contractor does not have his own code numbers in EPF, ESI, and other statutory authorities.

Regards,
AK Chandok
RPFC (Retd.)
www.akchandok.com

Referring to your query, please note the following:

1. Whenever the contractor approaches you for obtaining a license, the principal employer issues Form V, which states that the contractor should abide by all the norms as per the CL(R & A) Act of 1970 Rules. Additionally, the principal employer has also issued a Joint Undertaking along with the work order for obtaining the license from the concerned authorities within one month before commencing the contract, as per the agreement with terms and conditions set by the principal employer.

Thanks & Regards,

V R RAO PULIPAKA