Navigating BOCW and CLRA: Do Foreign Contractors in India Need to Register with Less Than 10 Employees?

When Company XYZ enters India as a contractor and hires a subcontractor from India, do they (Foreign Co. XYZ) still need to register under BOCW and CLRA given the employee strength is less than 10? Also, what about ESI and EPF?

I need this information for a thesis.

Any foreign national or company engaging in business activities in India by hiring Indian citizens is obligated to comply with the provisions of Indian labor laws applicable to such entities.

My question was whether the foreign company, who is the contractor, needs to register in CLRA if the employee strength is less than 10? Also, the subcontractor and the principal employer have CLRA and BOCW respectively.

Thank you.

Applicability of CLRA and BOCW Acts

If the contractor company employs or employed on any day of the preceding twelve months 20 or more workmen, then the CLRA would be applicable to said company. In Maharashtra, the words "20 or more workmen" have been substituted by "50 or more workmen" (notification dated 05th Jan 2017).

Similarly, if the work comes under the purview of the BOCW Act, then the BOCW Act is applicable. In your description, it is clear that the CLRA Act is not applicable to the said company as the employee strength is less than 50 or even 20. However, you are bound to comply under BOCW in respect of your on-roll employees. This is so because the subcontractor is already complying for their employees.

PF-ESI Applicability

The PF-ESI has nothing to do with the contract or subcontract. If the foreign company's employees' overall strength comes under the purview of the Acts, then PF-ESI will also be applicable.

For more clarification, please put a specific query so that learned members can throw further light on the matter.

If the Principal Employer has BOCW registration mentioning the name of the Contractor (in this context, it's Foreign Co. XY), will the Contractor (Co. XY) still need BOCW registration with employees less than 10?