Facing Pressure to Amend Worker Records: How Should I Handle This Situation?

Dear Seniors,

I am working in HR at a construction company in Mumbai. At one worksite, we applied for 1100 workers and 6 contractors, and we were successful in obtaining them.

One contractor, who has 700 workers at our worksite, only received a license for 100 workers. He is requesting us to amend our records to reflect 100 workers under his account. The Labour Commissioner also contacted us, instructing us to update the records to show 100 workers under the contractor's account. I have been summoned to the Labour Commissioner's office.

What should I do? Please advise urgently.

Dear Anonymous,

One of the contractors you have engaged has obtained a license for 100 workers, but in your RC, the number of laborers is shown as 700 against his name. The labor department is asking you to amend your RC to reflect 100 workers instead of 700.

When your RC shows 700 workers against the name of any particular contractor, the said contractor should have been granted a license for 700 workers only, not 100 workers. The department has done this with a certain motive, which is very serious in nature.

In this case, the contractor is expected to maintain all the relevant registers and records for not more than 100 workers. As an HR professional, you need to address the following questions under these circumstances:

1. What will you do if any worker meets with an accident when his name is not listed in the muster and not registered under ESI and BOCW?

2. How will you handle an inspection by LEO / GLO?

3. How will you manage various other authorities such as PF inspector, ESI inspector, Professional Tax Officer, Welfare Officer, etc.? All these authorities conduct audits based on your balance sheet / books of account.

4. How will you address any complaints by labor to any authority regarding non-payment, underpayment, lack of social security, etc.?

5. How will you or your contractor justify the labor expenses against the wage bill maintained for 100 workers only?

If you amend your RC as per the contractor and labor department, you will also be accountable.

You need to write to the contractor and the labor department requesting the license to be amended according to the RC issued to you. Demand labor compliance from the contractor as required. Remember that the Principal is liable for any defaults by the contractor, so ensure strict compliance. The labor department will not intervene to help you in case of problems.

Please let me know if you need any further assistance.

Best regards

Contractor and Principal Employer Coordination

Always, the contractor should be under the control of the Principal Employer. The employer is providing business to the contractor. Alternatively, both the Principal Employer and the contractor should coordinate with each other and obtain a license. In this case, it indicates the HR's inability. My advice is that the Principal Employer should regularly check after the contractor obtains the license. It is essential to ensure that the contractor does not exceed the maximum number on any given day. This way, the contractor can proceed with the adjustment of the license herself.

Dear Svramana88,

Do you mean to say that both the PE and contractor should agree to apply for a license for 100 workers in RC/License? This urgent query has not received a response from any member in the last 30 days. Once a member replies to a query, other members should either correct them if they are wrong or provide additional information they have to share.

I am sorry to say that lately, I have restricted myself from sharing my knowledge because of such situations.

As the Project Engineer (PE) communicates his requirements to the Contractor, the contractor should reciprocate in the same manner. This means that the PE must have a proper understanding of his manpower requirements from the individual contractor.