Who's the Principal Employer in This Contract Chain: Party A, B, or C?

"Party A" awards a contract for materials and services to "Party B" on a principal-to-principal basis. "Party B" enters an agreement with a contractor, "Party C," for manpower supply. "Party C" deploys its employees as contract labor. Party B is responsible for the supervision. Services are rendered at the premises of Party A.

Query: Who is the principal employer?

Principal employer will remain A. A has entered into a contract with B to provide supplies, and B has subcontracted it to C. The relationship between C and A is only through B, and there is no privity of contract between C and A. Was there any clause preventing subcontracting.

Principal-to-principal contract means a contract where both parties have entered into an agreement in their individual capacities, with no agents involved in between.

It would have been safe if no outsourcing was mentioned as a clause in the contract. Notwithstanding this, A has the liability as the principal employer.

All contracts must have certain vital details mentioned, depending on the nature of the contract. Have a standard contract for such hiring contracts that cover you legally and are up to date as per legal provisions.