Seeking Guidance on Engaging Contract Labor and Navigating Legal Processes in Manufacturing

Dear Senior, Requesting your support to guide me on the below points:

1. How to engage contract labor in a manufacturing organization.
2. Statutory processes and other legal processes to be followed while engaging the contractor.

Thanks for your valuable support.

Regards, S Youvaneshwaran

Hi Youvaneshwaran, Prior to engaging a contractor labor, it is crucial for the principal employer to register it with the authorities. Secondly, the principal employer should verify the licenses of the contractors. Thereafter, the principal employers must execute a contract with the contractors with the terms of engagement.

Thanks

The process for engaging a contractor:

a) Identify the nature of works to be done through the contractor.

b) Identify a contractor with good credentials and capability.

c) Obtain a Registration Certificate from the Joint Director of Industrial Safety and Health (or Deputy Chief Inspector of Factories).

d) Issue Form 5 to the identified contractor and advise them to apply and get a license with the nature of work to be done and the maximum number of persons that can be engaged.

e) Enter into a valid contract agreement with the contractor.

f) Start engaging the contractor.

g) Follow the rules and regulations to ensure that CLs are the workmen of the contractor and not the Principal Employer's.

h) Ensure that the contractor has their own ESI and PF code numbers to cover their workmen.

i) Maintain all necessary registers and records as per the CLRA Act.