Is Our Facility Management Contract Illegal Due to PASARA License Issues? Seeking Advice

Dear Team, Recently, I have raised an objection with the Labor Commissioner regarding the Facility Management Contract. I was appointed one primary contractor and executed a single service agreement for housekeeping & security services.

Issue with PASARA License

The discussion point is that the primary contractor does not have a PASARA license for security services, while the subcontractor (who actually provided security services under the primary contractor) does have a PASARA license.

Clause in Service Agreement

Furthermore, we have a clause in the service agreement that states only PASARA-licensed vendors should be engaged under the primary contractor. The labor officer mentioned that this clause constitutes an illegal agreement. Is this assessment correct?

Please provide me with your suggestions on how to proceed.

Regards, Naren

Agreement Between Primary Contractor and Subcontractor

The agreement between the primary contractor and subcontractor, where the primary contractor is the principal employer, can be one possibility. However, the issue may lie in the facility where security is provided, as it is not the premises of the primary contractor.