Is My Long-term Employee Considered Contract Labor for a Short Client Assignment? Seeking Guidance on Compliance

Contract Labor Act and Its Applicability

One of my engineers was deputed for a job at the client site for 6 days. This engineer has been my full-time employee for more than 10 years. The client wants us to submit documents treating him as contract labor and is asking for Form ABCD and others as per the Contract Labor Act. What can be done? Is the Contract Labor Act applicable in this case?

Service Company Compliance Practices

We are a service company, and the engineer is deputed at the client site for certain jobs, which can range from days to sometimes months. Generally, a statutory compliance declaration with PF deposition records is submitted to clients, including a Government of India (GOI) undertaking. This is the first time someone is asking for these documents. If it is correct, please guide me.

The contention of your client is certainly not correct. The Orissa High Court had already held in Basanta Kumar Mohanty v. State of Orissa (1992 II LLJ 190) that permanent employees employed at different establishments by a contractor are not considered contract labor.

Document Submission for Engineer's Employment Status

Please obtain the appointment order, employee ID, employment certificate indicating present emoluments, coverage under various social welfare schemes, and posting orders at the site. Submit these documents to the customer while reiterating your argument that the engineer is a regular employee of the contractor. Make sure to mention the judgment in Basant Kumar Mohanty in support. I have experience dealing with similar circumstances.