New to HR? What to Include in a Consultancy Agreement for Compliance and Staffing?

Hello friends, I am new in the HR field and want to ask if I hire a consultant for handling all the compliance, payroll, staffing, recruitment, and other HR-related tasks, will they be responsible for completing them. When signing a contract with them, what points should be included in the agreement? Is it acceptable to request the PF/ESIC login password to verify whether they have submitted the PF or not?

Which companies fall under the Shops and Establishments Act?

When does a company provide LWF (Labor Welfare Fund)?

Consultant Responsibilities

Will the consultant supply hard copies of the joining kits, or is it their responsibility to manage all the statutory compliances when we place employees under their role? Additionally, will they offer HR policies such as an HR handbook, leave policy, induction training, maternity policy, gratuity, bonuses, and more?

Please help me out.

Scope of Outsourcing with HR Consultant

First of all, you need to be clear on the scope of outsourcing you want to do with the HR consultant. Then, define the outcomes and the actions in case of default or shortfall.

PF and ESI Compliance

Regarding PF and ESI compliance, you need not insist on their password or login ID, as the same could be done using the unique identity number of employees deployed under these schemes. Insist on the production of a wage bill or salary statement signed by the employees concerned, confirming that they have received the amount shown against each, as well as a copy of the return indicating the breakup of individual-wise contributions.

Indemnity Bond and Performance Guarantee

Finally, take an indemnity bond from the contractor regarding any future claims after the contract period is over, and secure some performance guarantee for a period of one year.