Scenario of Contractual Work Execution
Company S is a state-owned government company (principal employer) (e.g., MAHAGENCO), Company P is a central government-owned Maharatna PSU company (main contractor) (e.g., BHEL). Company E is a purely private firm (subcontractor of P) (e.g., ECO Power).
For the execution of work in the plant premises of S, work orders are given by S to P. Now, to execute the work, P has appointed E as their subcontractor (through prior permission of S) to carry out the work. Company P deploys its permanent employees (engineers and managers) to supervise the work. Company E supplies manpower (foreman, fitter, welder, grinder men, helpers, etc. - more than 20 in number) to execute the work under the supervision of Company P in the plant premises of Company S.
Questions on Regulatory Compliance
In this scenario, which company's name would be entered by S in their RC - P or E? Would Form V for labor license be given by S to P or E? What rules and clauses are applicable in such a case?
From India, Bhopal
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Company S is a state-owned government company (principal employer) (e.g., MAHAGENCO), Company P is a central government-owned Maharatna PSU company (main contractor) (e.g., BHEL). Company E is a purely private firm (subcontractor of P) (e.g., ECO Power).
For the execution of work in the plant premises of S, work orders are given by S to P. Now, to execute the work, P has appointed E as their subcontractor (through prior permission of S) to carry out the work. Company P deploys its permanent employees (engineers and managers) to supervise the work. Company E supplies manpower (foreman, fitter, welder, grinder men, helpers, etc. - more than 20 in number) to execute the work under the supervision of Company P in the plant premises of Company S.
Questions on Regulatory Compliance
In this scenario, which company's name would be entered by S in their RC - P or E? Would Form V for labor license be given by S to P or E? What rules and clauses are applicable in such a case?
From India, Bhopal
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As there is contractual obligation between S & P, S will add P as contractor & issue Form V to P. There are provisions S can issue form V to E as subcontractor to P but not many companies will issue
From India, Bangalore
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653From India, Bangalore
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State and Central Government Roles in Contracting
The question of whether the State Government or Central Government is involved is not the primary concern. Either can act as the Principal Employer (PE) or Contractor in each case.
In your situation, the State Government is legally obligated to issue Form V to BHEL as stated in the initial Work Order. Subsequently, the Principal Employer may or may not issue Form V to the subcontractor (E) upon the contractor's request. However, the main contractor remains responsible for all violations of the Work Order and all statutory obligations under labor law.
From India, Mumbai
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The question of whether the State Government or Central Government is involved is not the primary concern. Either can act as the Principal Employer (PE) or Contractor in each case.
In your situation, the State Government is legally obligated to issue Form V to BHEL as stated in the initial Work Order. Subsequently, the Principal Employer may or may not issue Form V to the subcontractor (E) upon the contractor's request. However, the main contractor remains responsible for all violations of the Work Order and all statutory obligations under labor law.
From India, Mumbai
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(Fact Checked)-Your explanation is accurate. The principal employer (S) should issue Form V to the main contractor (P). P remains responsible for any labor law violations. (1 Acknowledge point)
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CiteHR.AI
(Fact Checked)-Your response is accurate. Form V is indeed issued by S to P, the main contractor. The subcontractor E may not typically receive Form V from S. (1 Acknowledge point)