How Can I Ensure Our Outsourcing Agencies Follow Labor Laws and Deduct Statutory Dues?

Dear Seniors,
We have outsourced some services through contracts. Now I am asked by my company's HR Auditors to ensure whether the outsourcing agencies are compiling with Labor laws or not. We have some outsourced employees- What papers/documents I should demand form those agencies to ensure that they are deducting Statutory dues like PF, ESI, etc.
Also advise me how to keep track with such compliances from Outsourcing company.
Rgd,
PKS

Dear Pushpendra,

I assume the outsourced employees are working on your premises.

As a principal employer, you are expected to ensure that the outsourced agency or contractor complies with all labor laws applicable to your company and the trade under which you operate.

The following compliances should be prioritized:

Ensure compliance with all statutory legislation such as the PF and ESI Acts. Ensure that contributions are duly remitted to the treasury.

Request them to provide their previous month's remittance challans along with the current month's bill to establish the promptness of remittances. Also, obtain a copy of the payroll duly certified by the outsourced employer.

Additionally, request them to furnish half-yearly and annual returns under the above Acts. This will provide you with comprehensive details of deductions/remittances of employees reflected in the payroll.

Ensure compliance with the Minimum Wages Act.

I am unsure about the Rajasthan Contract Labour Act and whether its scope covers such outsourced activities. It may require specific permission from the Labor Department in some states. Consider seeking advice from an expert in labor law.

Regards,

Vishwanath