Is It Legal to Move a Contract Worker Between Two Employers in the Same Payroll Month?

If any contractor is moving one worker frequently between two sites with different principal employers in the same city, is it allowed as per CLRA? For example, with Principal Employer 1, that worker worked for the initial 10 days, and with the other PE worked for 6 days, then again moved to Principal Employer 1 for 10 days within a particular payroll month. Will he generate two payslips for each PE?

Maintaining the Register of Workmen

How does he maintain his entry in the register of workmen if he is moving this worker frequently? The main question is, is it allowed as per the law or not?

He can work in different PEs under the same contractor registration, but their ESIC & EPF numbers should not be changed, and his duty should not be repeated on any day; otherwise, it will create a problem in EP ECR. Salary slips will be issued separately for both PEs.

Contractor's Payroll and Worker Deployment

The worker should be under the payroll of the Contractor, right? Then what is the issue? He can work for different principal employers at different locations. Since he is paid by his employer, i.e., the Contractor, he will get a wage slip from his employer, the Contractor, which will show the total wages earned for the month and the contributions towards ESI and PF. It is not required that there should be separate payslips for each principal employer. Treat the worker as an employee of the Contractor's establishment who is deployed at different plants. In the muster rolls, just for administrative purposes, the Contractor can put remarks as to where he has worked. That will meet the legal requirements also.

There is no issue if a worker can work in different establishments during a particular month.

Example of Worker Allocation

Let us follow the example: Ramesh is an employee of ABC Enterprise (Contractor) but works on behalf of the contractor for the Principal Employer establishments named X, Y, and Z. Ramesh worked 10 days in X, 7 days in Y, and 8 days in Z.

Muster Roll and Compliance

The contractor has to show 10 days in the muster roll prepared for X Co., 7 days in the muster roll of Y Co., and 8 days in the muster roll of Z Co. The contractor has to prepare a separate muster roll for each Principal Employer, as per the rule. The contractor has to deduct the employee's share from three separate muster rolls and prepare the challan for both EPF and ESI, adding the employer's share, but must attach the muster roll sheet for clarity.

I hope this provides you with clarity.

Hi, In a scenario where a contractor is moving one worker frequently between two different sites with different principal employers in the same city, it's important to ensure compliance with labor regulations.

Worker Registration
The worker should be registered with the contractor. This includes maintaining proper records of their personal information, qualifications, and any necessary certifications.

Contract Agreements
The contractor should have a clear contract in place with both of the principal employers. This contract should outline the terms of employment, responsibilities, wages, and any other relevant details.

Compliance with Labor Laws
The contractor should ensure that they comply with all local labor laws and regulations, which may include requirements for worker registration, safety standards, and fair labor practices.

Providing Necessary Benefits
The contractor should provide the worker with any necessary benefits as per the local labor laws, which may include health insurance, workers' compensation, and other entitlements.

Maintaining Records
The contractor should keep accurate records of the worker's hours, tasks, and any other relevant information. This is important for both legal compliance and payroll purposes.

Taxation and Social Security
The contractor is typically responsible for withholding and remitting taxes and social security contributions on behalf of the worker, as required by local laws.

Safety and Training
The contractor should ensure that the worker receives appropriate safety training and equipment, especially if they are working in different environments.

Coordination with Principal Employers
The contractor should maintain open communication with both principal employers to ensure that they are aware of the worker's activities and any changes in scheduling.

Documentation and Reporting
The contractor may be required to submit regular reports to relevant authorities, detailing the worker's activities, wages, and other relevant information.

Compliance Checks
It's advisable for the contractor to periodically review their practices and ensure they continue to comply with any changes in local labor laws or regulations.

Please note that labor laws and regulations can vary significantly depending on the jurisdiction and industry. It's crucial for the contractor to consult with legal professionals or labor experts who are familiar with the specific laws applicable in their location. This ensures that they remain in full compliance and that the rights and well-being of the worker are protected.

Regards,