Temporary Labor Compliance: What Documents Are Needed for Inspections?

Hi HRs,

In our company, we have around 10 Hindi employees without any ESI and PF. They are temporary laborers. If any inspection happens, what documents do I need to prepare for them? Do I need to create a contract agreement or any other agreement for them?

They are temporary laborers, and every month we pay their salary in cash only. We create vouchers for the cash payments.

Please clarify my doubts.

Thanks and Regards,
Nagarjun R
HR Admin
Papas Trading Private Limited

Clarification on "Hindi Employees" and "Temporary Labourers"

Please clarify what you mean by "Hindi Employees" and "Temporary Labourers." Have you issued appointment letters to them as "Temporary Labourers"? Please note that all laws applicable to permanent employees also apply to temporary laborers.

Furthermore, please note that "Hindi" is the official language of India. Indian labor laws apply to all employees, regardless of the languages they speak.

Role and Documentation

What is your role in the organization? What documents are you currently maintaining for temporary laborers? Whether you pay salaries by cheque or cash is immaterial; please ensure compliance with all laws that apply to your permanent employees for temporary employees.

Nagarjun,

Please follow the Contract Abolition Act which includes P.F. and ESIC. As rightly pointed out by other members, they are equally and legally workers. Do not differentiate them based on language.

Regards,
Y.R. Shirke

As others have pointed out, what is a 'Hindi' worker?

Now, the nature of the employee, i.e., temporary, is irrelevant in the case of both ESI and PF. So start paying all the statutory dues to your Hindi workers at the earliest to avoid further legal complications, including penalties or damages from the statutory authority.

Hi Mr. Ritesh Maity,

This is Karnataka. In terms of Hindi employees, what I said is, particularly 10 employees (Hindi), we are maintaining a separate attendance as well as a payroll sheet. We are not including any company benefit list. For this, what documents do I have to maintain? Is a contract labor agreement required?

Please clarify.

Thanks & Regards,
Nagarjun R
HR Admin
Papas Trading Private Limited

Hi,

You can issue temporary appointment letters or enter into a contract for a limited period. In either case, they are eligible for ESI and PF facility. Please don't differentiate workers by language, region, etc.

Regards,
Pranesh

You have mixed up a query, but I am trying to resolve it hereunder.

Contract Labor Regulations

If you are engaging contract laborers under the CLRA, your company must have a valid registration, and the contractor must obtain a license. As the number is just 10, the license for the contractor is not applicable. If you already have registration to engage a contractor, it can be amended, so apply for it. However, if the number goes above 20 at any time, then you need to ensure that the contractor has a license. Be careful. You can award a contract/agreement to the contractor with a maximum of 10 manpower.

Applicability of Labor Laws

The Minimum Wages Act, ESI, and PF are applicable as other members opined above.

Regards,

The Act applies only if 20 or more are engaged through one or more contracts. Registration will not be accepted by the authorities. But for safe purposes, you need to have a contract between the Principal Employer and the Contractor Immediate Employer. Coverage of ESI and EPF arises if your organization is registered under both the said Acts.

Payment to the employees of the contractor has to be made only through the contractor and not by you. If you pay by cash or cheque, then they become your employees.

Dear Sir,

We would like to bring to the kind notice of all concerned that a Contact Labour License/Registration is applicable for the engagement of 10 laborers in Gujarat. Therefore, confirmation of registration upon the engagement of 20 laborers is not correct. Even if required, registration can be requested for fewer than 10 laborers as well. It is advisable to contact the office of the Registration Authority in that area.

Thanks & Regards, RKB