Can Courier Contractor work as contract employee under his own contract

meenaxi.dhiman
Can a Courier Contractor work as an employee himself under the same contract?
PRABHAT RANJAN MOHANTY
Without the clear substance on the subject difficult answer your query. Would you specify what exactly the case is?
umakanthan53
In my opinion, it cannot be for one cannot have a dual relationship as that of a contractor and a contract labor to the same principal employer. Of course the contractor can take a portion of the contract amount towards his service rendered along with his contract labor. But he cannot perform the dual role of contractor cum contract labor.
saswatabanerjee
if i understand correctly, you are asking if the courier contractor can do part of the courier work himself.
I dont see a problem with that. The contract is generally to deliver a service. There is nothing wrong with the contractor doing a part of the service himself
PRABHAT RANJAN MOHANTY
An example offered to understand, whether is same as per your query?
We engaged Mr. X as the contractor for Repairing & Erector of Boiler. The contract had given to him because he was a Govt Certified High Pressure Welder and he was doing all welding work of the project. There is nothing wrong, a contractor can be an employee in his own firm.
meenaxi.dhiman
Thanxs @Umakanthan.M Sir, to my opinion also one can't be employer and employee himself. Further, master-servant relation is also to be taken care of under Contract Labour besides considering the statutory deductions/ compliances
umakanthan53
Yes, Ms.Meenaxi,

I think that our friends have answered the query in a general perspective of a proprietor working in his own establishment along with his employees. It is correct but it cannot confer him the legal status/position of an employee.

Very particularly under the CLRA Act,1970, the terms 'contractor', 'contract labor' and 'principal employer' do not stand in absolute terms but in relation to one another only. For the purpose of licensing of contractor under the Act, the same person cannot be a 'contractor' and a 'contract workman'. In addition, the question of coverage of that contractor cum contract labor under the EPF and ESI Acts or EC Act would also arise. One cannot be a 'contractor' and a 'contract labor' under the CLRA Act,1970.

Therefore, my above negative answer to the query is from such a legal perspective only and not the contractor's stepping into the shoes of anyone of his contract labor for the sake of expediency of the contract work.
nanu1953
In India there are contractors who are also contract labor. Those contractors are covered under PF & ESIC. Those contractors have labor licence and submitting half yearly return under CLRA Act on regular basis including his name as contract labor and he as Contractor signing the returns. This is reality even in MNCs.

In my career I have faced Inspectors both from PF & ESIC who have advised to deposit the contribution of Contractor as he is also a contract labor. ESIC inspector put one good point that in case of any accident who will be responsible. But I have noticed to happen such activities in specialized engineering jobs not in courier services.

It is a conflicting situation but reality is reality.

S K Bandyopadhyay ( WB, Howrah )

CEO-USD HR Solutions



saswatabanerjee
Shree Bankyopadhyay,
I think your solution is more feasible in case the contractor is running a non-proprietory business. If he is a company, or a partnership, then he can be an employee of the organisation and therefore the contract labour. if he is proprietor since he can not be an employee of himself he cannot pay himself a salary.
In such case, the problem for ESIC remains.
There is nothing wrong per se for an employee of the contractor to sign the returns as manager can sign if authorised. So the contractor signing being an employee, is also not wrong in law.
Unfortunately, the original post does not give any details, so we are all guessing here...
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