Hello,
Could someone pls let me know whether a foreign director can be a principal employer for the purpose of Contract labor and Shops and establishments Act . Such director will reside in India only for a short period during a year.
Thanks and regards
Amita
Could someone pls let me know whether a foreign director can be a principal employer for the purpose of Contract labor and Shops and establishments Act . Such director will reside in India only for a short period during a year.
Thanks and regards
Amita
The Principal Employer is the one who is the owner and / or Manages the Business. Any person who responsible for supervision and control of the Organization. Director who is a citizen of other country / NRI will also be held as Principal Employer as he is one of the Director.
Saurabh
From China, Leizhou
5Saurabh
From China, Leizhou
Dear Amita,
You have asked that a foreign Director can be PE for the purpose of CL (R&A) Act & Shops & Commercial Establishment Act. It is made clear that PE is only defined under The Contract Labour (R&A) Act, 1970. According section 2 (g) (ii), the definition of the PE may be read as under:
“in a factory, the owner or occupier of the factory & where a person has been named as manager of the factory under Factories Act,1948, the person so named.” & as per section 2(g) (iv) for any other establishment, any person responsible for supervision & control of the establishment.
Your unit seems to be covered under the Shops Act & according the definition of the PE for other Establishment the director can be declared as PE only when he responsible for supervision & control of the establishment.
Regards,
R.N.Khola
(Labour Law & Legal Consultants)
09810405361
From India, Delhi
You have asked that a foreign Director can be PE for the purpose of CL (R&A) Act & Shops & Commercial Establishment Act. It is made clear that PE is only defined under The Contract Labour (R&A) Act, 1970. According section 2 (g) (ii), the definition of the PE may be read as under:
“in a factory, the owner or occupier of the factory & where a person has been named as manager of the factory under Factories Act,1948, the person so named.” & as per section 2(g) (iv) for any other establishment, any person responsible for supervision & control of the establishment.
Your unit seems to be covered under the Shops Act & according the definition of the PE for other Establishment the director can be declared as PE only when he responsible for supervision & control of the establishment.
Regards,
R.N.Khola
(Labour Law & Legal Consultants)
09810405361
From India, Delhi
Dear Amita,
Yes,he/she can be PE even he reside in India for a short period,it does not matter about the presence becuase he/she have other responsibilities too like as marketing/business developments etc....so he has to travel.
In India there are so many MNC where the PE & directors are foreigners and your company is under shops & establishment where its allow to free to works in India & capture all top position becuase they have maintain the quality of services.The overall is the matter of responsibility of occupier.
Best Regards
Sajid Ansari
From India, Delhi
Yes,he/she can be PE even he reside in India for a short period,it does not matter about the presence becuase he/she have other responsibilities too like as marketing/business developments etc....so he has to travel.
In India there are so many MNC where the PE & directors are foreigners and your company is under shops & establishment where its allow to free to works in India & capture all top position becuase they have maintain the quality of services.The overall is the matter of responsibility of occupier.
Best Regards
Sajid Ansari
From India, Delhi
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