1. I have following queries in the area of contract labour management in our factory (in Kolkata):
A. We have engaged an agency (a cost accountant firm) to look after and manage the contract labour related compliances. As a part of their job their representative also oversee the wage payment made by the contractors to their labours and signs in the wage register certifying payment made in presence of them. My first question is there any problem with the present system of wage register certification. Please note that in the CLRA act it is said that principal employer should ensure presence of his authorized representative in the time of payment of wages by the contractors. Now if we authorize the agency (as per the work order issued) to be present during wage payment process and accordingly certify the wage register which is subsequently endorsed by HR dept., then is there anything wrong in the practice?
B. In case of one of our contractor, there are allegation that he has not paid minimum wages and PF to few of its workmen i.e. out of say 50 workmen he has paid PF for 35 and records furnished but for rest 15 the contractor is unable to furnish any records in terms of wage payment or PF deposition. Problem from our end is that to avoid any sorts of direct control, we as principal employer do not keep any attendance record for the contractors workmen. But when we are asking the contractor to show muster roll, wage register, PF deposition against those workmen, the contractor is unable to show the same. We have blocked the security deposit of the contractor, but what could be the way out? Any suggestion.
C. In case a contractor engages a sub contractor then we as principal employer would like to take a declaration cum undertaking from the contractor (principal contractor) stating the fact of engagement of sub contractor and taking the ultimate liability of compliance if sub contractor fails. Can you provide any sample format of such letter along with a sample indemnity bond on the same.
Rgds,
DG
A. We have engaged an agency (a cost accountant firm) to look after and manage the contract labour related compliances. As a part of their job their representative also oversee the wage payment made by the contractors to their labours and signs in the wage register certifying payment made in presence of them. My first question is there any problem with the present system of wage register certification. Please note that in the CLRA act it is said that principal employer should ensure presence of his authorized representative in the time of payment of wages by the contractors. Now if we authorize the agency (as per the work order issued) to be present during wage payment process and accordingly certify the wage register which is subsequently endorsed by HR dept., then is there anything wrong in the practice?
B. In case of one of our contractor, there are allegation that he has not paid minimum wages and PF to few of its workmen i.e. out of say 50 workmen he has paid PF for 35 and records furnished but for rest 15 the contractor is unable to furnish any records in terms of wage payment or PF deposition. Problem from our end is that to avoid any sorts of direct control, we as principal employer do not keep any attendance record for the contractors workmen. But when we are asking the contractor to show muster roll, wage register, PF deposition against those workmen, the contractor is unable to show the same. We have blocked the security deposit of the contractor, but what could be the way out? Any suggestion.
C. In case a contractor engages a sub contractor then we as principal employer would like to take a declaration cum undertaking from the contractor (principal contractor) stating the fact of engagement of sub contractor and taking the ultimate liability of compliance if sub contractor fails. Can you provide any sample format of such letter along with a sample indemnity bond on the same.
Rgds,
DG