Navigating Principal Employer and Subcontractor Dynamics: Can Form III Be Issued Without Direct Contract?

Principal Employer and Subcontractor Relationship

My query is: Can the principal employer issue Form III to the subcontractor if the contract is between the contractor and the subcontractor, with no contract between the principal employer and the subcontractor? The labor department is requesting the enclosed work order copy with the application.

Following Queries

1. Should the work order copy provided by the contractor be enclosed, or should a new work order be issued by the principal employer?
2. The contractor has only six employees, so there is no need to obtain a labor license. Will the statutory compliance be maintained by the subcontractor, i.e., PF, CLA registers, etc.?

All members are invited to please enlighten me on the above queries.

Regards,
Sajjan Singh Bhati
[Phone Number Removed For Privacy-Reasons]

Form III Issuance After Company Name Change

Can the principal employer issue Form III for a labor license if the PE was issued to the company before the company changed its name recently? Please confirm.

Registration and Compliance Requirements

Form III is for the registration of the establishment as the Principal Employer. Form V is needed from the Principal Employer (PE) for the Contractor to obtain a license. As correctly mentioned, since the number of laborers deployed is below 20, there is no need for that party to obtain a Labor License.

The subcontractor has already received the work order from the contractor. The PE should never issue another work order for the same purpose.

Yes, compliance must be ensured by the subcontractor. However, as the PE, you are also liable in case the contractor defaults. Therefore, it is in your interest that the contractor has the establishment inspected by the respective authorities at least once a year.