Neither the Contract labour act nor the Payment of gratuity act provides that principal employer will pay gratuity to employees of contractor. |Kerela high court has held that this does not comes under the defination of payment of wages act. so this is the responsibility of contractor not the principal employer.
From India, Gurgaon
From India, Gurgaon
To ensure that the contractual compliances by the contractor w.r.t EDLI, Group Personal Accident, Privelege Leave. bonus/ex-gratia, following are some of the best practices.
1) Principal Employer should ensure an one time indemnity bond from the Contractor on Statutory compliances
2) While processing their payments, Principal Employer can demand the remittance challans of contributions to ESI, PF etc.,
3) A declaration from the contractor stating that the listed employees working for the Principal Employer were covered under ESI, PF by providing their individual Registration Numbers.
Though the practice needs a better understanding between Principal Employer and the Contractor in submission of the above documents, the legal impacts on non compliance on both of them can be minimised.
B Srinivas
Chennai
From India, Madras
1) Principal Employer should ensure an one time indemnity bond from the Contractor on Statutory compliances
2) While processing their payments, Principal Employer can demand the remittance challans of contributions to ESI, PF etc.,
3) A declaration from the contractor stating that the listed employees working for the Principal Employer were covered under ESI, PF by providing their individual Registration Numbers.
Though the practice needs a better understanding between Principal Employer and the Contractor in submission of the above documents, the legal impacts on non compliance on both of them can be minimised.
B Srinivas
Chennai
From India, Madras
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Statutory Compliance of a Industrial or Commercial Unit.xls
Statutory-compl iance.pdf