How Should We Handle Compliance and Benefits for Contract Workers Under Our Main Contractors?

Clarification on Contract Labour Management

We have obtained a contract license for 50 employees from the Guntur Contract Labour Commissioner's office. Under our contract (Assume A), we have engaged one civil main contractor (Assume B) and one mechanical main contractor (Assume C).

Under B, approximately 15 employees have been working for the first 3 months. Under C, almost 20 employees have been working for the second 3 months. We are not paying wages to employees working under B & C because they are not within our scope. We are only paying the bill payments to main contractors B & C.

B will complete his work fully within the first 3 months of the first quarter. C will complete his work fully within the 3 months of the second quarter. We are unaware of the salaries that B & C are paying their employees. The employees under B & C are not working continuously under their control. B & C frequently replace their employees and do not regularize them. We do not interfere in such matters. We only communicate directly with B & C, not their employees.

Many times, employees of B & C are moved from one workplace to another by B & C, but these workplaces are not under our control (A). Another workplace is controlled by B & C. Within our control (A), 11 regular employees (on the roll, muster roll, permanent, not contract labor) are working.

Compliance with The Contract Labour (Regulation and Abolition) Act, 1970

For this scenario, what should we maintain for B & C employees, A employees, or both under The Contract Labour (Regulation and Abolition) Act, 1970, and the Contract Labour (Regulation and Abolition) Central Rules, 1971?

Form XIII Register of Workmen employed by the contractor Rule 75
Form XIV Employment Card Rule 76
Form XV Service Certificate Rule 77
Form XVI Muster Roll Rule 78(1)(a)(i)
Form XVII Register Of Wages Rule 78(1)(a)(i)
Form XVIII Register Of Wages cum Muster Roll Rule 78(1)(a)(i)
Form XIX Wage Slip Rule 78(1)(b)
Form XX Register of deductions for damage or loss Rule 78(1)(a)(ii)
Form XXI Register Of Fines Rule 78(1)(a)(ii)
Form XXII Register Of Advances Rule 78(1)(a)(ii)
Form XXIII Register Of Overtime Rule 78(1)(a)(iii)

Maintenance of PF & ESI

Should we maintain PF & ESI for B & C employees, our (A) employees, or both? Please clarify the above matters.

Thanks with Regards,

Thirumurugan

Dear HR experts and seniors, please clarify the following things: We have obtained a contract license for 50 employees from the Guntur Contract Labour Commissioner's office. Under our contract (Assume A), we have engaged one civil main contractor (Assume B) and one mechanical main contractor (Assume C). Under B, nearly 15 employees are working in the first 3 months. Under C, nearly 20 employees are working in the second 3 months. We are not paying wages to employees who are working under B & C because they are not in our scope. We are only paying the bill payment to main contractors B & C. B will complete his work fully within 3 months in the first quarter. C will complete his work fully within 3 months in the second quarter. We do not know how much salary B & C are giving to their employees. The employees under B & C are not working continuously under their control. They are frequently replaced with new employees, and their employment is not regularized. We do not interfere in such matters. We only communicate directly with B & C, not their employees. Many times, employees of B & C are shifted from one workplace to another controlled by B & C, which is not under our scope (A Control). In our control (A), 11 regular employees (on roll, muster roll, permanent, not contract labor) are working.

Compliance Requirements Under The Contract Labour Act

For this case, should we maintain the following things for B & C employees or A employees or both under The Contract Labour (Regulation and Abolition) Act, 1970, and the Contract Labour (Regulation and Abolition) Central Rules, 1971?

- Form XIII Register of Workmen employed by the contractor Rule 75
- Form XIV Employment Card Rule 76
- Form XV Service Certificate Rule 77
- Form XVI Muster Roll Rule 78(1)(a)(i)
- Form XVII Register Of Wages Rule 78(1)(a)(i)
- Form XVIII Register Of Wages cum Muster Roll Rule 78(1)(a)(i)
- Form XIX Wage Slip Rule 78(1)(b)
- Form XX Register of deductions for damage or loss Rule 78(1)(a)(ii)
- Form XXI Register Of Fines Rule 78(1)(a)(ii)
- Form XXII Register Of Advances Rule 78(1)(a)(ii)
- Form XXIII Register Of Overtime Rule 78(1)(a)(iii)

Should we maintain PF & ESI for B & C employees or our (A) employees or both? Please clarify the above points.

Thanks with regards,

Thirumurugan

Contractual Responsibilities and Compliance

The main contractor has been awarded the contract either solely as A or jointly with B and C. The labor license holder must ensure that all formalities and statutory dues are paid on time by the subcontractor. Otherwise, they will be liable for the payment of the same.

B and C have to submit the EPFO and ESIC records of their employees engaged in the contract. Before clearing their dues, the principal must ensure that the government dues are paid. Otherwise, the liability remains with the principal contractor as well as the principal.