Hello friends, I am wondering if it is possible for there to be two principal employers in a single factory. I have contacted the labor authorities regarding this issue, and they told me that it is not possible. However, they failed to explain the law under which they are making this statement.
Suppose X is a principal employer registered under the Factory Act and Contract Labour Act at ALC (C). X engages another agency, Y, which is also registered under the State Government (DLC) and supplies manpower to X. Y issues Form V to its contractors (who are subcontractors for X). Is this practice valid?
Thank you.
From India, Delhi
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Suppose X is a principal employer registered under the Factory Act and Contract Labour Act at ALC (C). X engages another agency, Y, which is also registered under the State Government (DLC) and supplies manpower to X. Y issues Form V to its contractors (who are subcontractors for X). Is this practice valid?
Thank you.
From India, Delhi
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A “principal employer” as defined under the Contract Labour Act covers any person responsible for the supervision and control of the establishment. In the case of a factory, such person would include the owner or occupier of the factory or a manager under the Factories Act.
The definition itself precludes having more than one principal employer in a single establishment as it would diffuse responsibility and accountability.
From India, Pune
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3180The definition itself precludes having more than one principal employer in a single establishment as it would diffuse responsibility and accountability.
From India, Pune
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Is it possible to have two principal employers in a single factory?
The answer is "No."
There are instances where a single factory splits into two units, and each unit obtains a license from the authority as a "Factory," remaining within the same boundary but showing premises as separate. Under this circumstance, the Principal Employer is one for each unit.
The principal contractor can also issue Form V to the contractor [Y] engaged under or by Contractor [X] in consultation. But for all purposes, Contractor [X] shall remain liable to the Principal Employer.
The firm [X], registered under Shops & Commercial Establishment, is working under AB Co as a contractor. The firm [X] can issue Form V to [Y] to obtain a license for his work. In the AB Co premises, AB Co is the principal employer for both X and Y, even though M/s X has issued Form V.
From India, Mumbai
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The answer is "No."
There are instances where a single factory splits into two units, and each unit obtains a license from the authority as a "Factory," remaining within the same boundary but showing premises as separate. Under this circumstance, the Principal Employer is one for each unit.
The principal contractor can also issue Form V to the contractor [Y] engaged under or by Contractor [X] in consultation. But for all purposes, Contractor [X] shall remain liable to the Principal Employer.
The firm [X], registered under Shops & Commercial Establishment, is working under AB Co as a contractor. The firm [X] can issue Form V to [Y] to obtain a license for his work. In the AB Co premises, AB Co is the principal employer for both X and Y, even though M/s X has issued Form V.
From India, Mumbai
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NOTE ON PRINCIPAL EMPLOYER TO ENGAGE CONTRACT LABOUR.pptx
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Contract Labour Act.zip