Employer And Principal

hekarthik
Dear Seniors
Please let me know any difference on principal of Employer and Employer under Labour Laws .
Madhu.T.K
The term principal employer has relevance only when there are more than one employer. That means where workers are engaged through a contractor there will be two employers in the same establishment, one the employer for whom the regular employees who are employed by him and also the workers who are employed by the contractor work and the second one is the contractor who has employed the workers to work for the former employer. Since all these workers work FOR the objective of the first employer he is said to be the primary or principal employer. At the same time, since there are a few workers on whom the supervision and control is with some other person, ie, the contractor, who has employed them we have another employer, ie, employer in relation to contract workers.
The significance of principal employer is there in Contract Labour system only and in all other cases employer means the principal employer only.
Madhu.T.K
Zaveri & Associates
The term Principal Employee means the employer who hires the services of the employees through contractor. Please see Contract Labour (Prohibition and Abolition) Act.
Harsh Kumar Mehta
Sir(s),
In some of enactments viz. ESI Act, 1948 (section 2(17) the term "principal employer" has been used, whereas in some enactments viz. EPF & MP Act, 1952(Section 2(e), it is only the word "employer" which has been used. In my opinion, there appears to be no difference between these words.
Important aspect is as to in which manner, these terms have been defined by the legislature in the respective Acts. It is only the definition of above words in respective Act which is relevant in deciding the issues involved in any Act.
Proprietors, all Partners including Managing Partners, Occupiers as declared in the Factories Act, General Managers, Managers etc. all are "principal employers" . If any question arises and matter is raised disputing liability as "principal employer", the issue is decided in accordance with the definition in respective Act.
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