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We are hiring an electrical contractor for our factory registered under the Factory Act. I have a small query: under which section of labor law will I have to check other legal applicable requirements, such as an electrical contractor license, or will it be taken care of by the user department, like Engineering?

What are the legal consequences on HR in case of an accident if I don't check these requirements and register it as a regular contract for our premises, and give clearances from my side?

From India, Pune
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Clarification on Contractor Qualifications Under CLRA Act, 1970

You have raised the same issue in three different threads with slight modifications. As far as I know, the CLRA Act, 1970 does not prescribe any qualifications for contractors for the applicability of the Act other than a certain minimum number of workmen likely to be engaged by the contractors in the operations of the principal employer. It would certainly be within the purview of the user department to fix the qualifications of the contractors likely to be engaged for the operations.

As far as HR is concerned, it has to confirm whether the vicarious liabilities of the principal employer are met by the prospective contractor by having his arrangements for payment of minimum wages, EPF and ESI contributions, provision for compensation under the EC Act, 1923 in case of employment accidents, and the like.

From India, Salem
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