Dear Seniors,
We have outsourced some services through contracts. Now I am asked by my company’s HR Auditors to ensure whether the outsourcing agencies are compiling with Labor laws or not. We have some outsourced employees- What papers/documents I should demand form those agencies to ensure that they are deducting Statutory dues like PF, ESI, etc.
Also advise me how to keep track with such compliances from Outsourcing company.
Rgd,
PKS
From India, Mumbai
2We have outsourced some services through contracts. Now I am asked by my company’s HR Auditors to ensure whether the outsourcing agencies are compiling with Labor laws or not. We have some outsourced employees- What papers/documents I should demand form those agencies to ensure that they are deducting Statutory dues like PF, ESI, etc.
Also advise me how to keep track with such compliances from Outsourcing company.
Rgd,
PKS
From India, Mumbai
Dear Pushpendra,
I assume the outsourced employees are working in your premises.
Being a principal employer, you are expected to ensure that outsourced agency or contractor should comply with all labour laws that are applicable to your company and your trade under which you fall in.
Primarily following complaiances should be done-
Ensure that all Statutory legislation like PF ESI act are complied. The contribution is duly remitted to treasury.
Ask them to submit their previous month's remittance challans along with current months bill to establish promptness of remittances. Also get a copy of payroll duly certified by the outsourced employer.
Further you request them to furnish Half yearly and annual returns under above Acts. It will give you complete details of deductions/remittance of employees reflected in the payroll.
You should ensure that they are complied with Minimum wages Act.
However, i am not sure of Rajastan contract labour act. whether the scope of act covers such outsourced activity and such outsourcing requires to have a specific permission from Labour departnment. In some states, it requires permission. You will have to refer to a expert in labour law.
rgds
vishwanath
From India, Bangalore
I assume the outsourced employees are working in your premises.
Being a principal employer, you are expected to ensure that outsourced agency or contractor should comply with all labour laws that are applicable to your company and your trade under which you fall in.
Primarily following complaiances should be done-
Ensure that all Statutory legislation like PF ESI act are complied. The contribution is duly remitted to treasury.
Ask them to submit their previous month's remittance challans along with current months bill to establish promptness of remittances. Also get a copy of payroll duly certified by the outsourced employer.
Further you request them to furnish Half yearly and annual returns under above Acts. It will give you complete details of deductions/remittance of employees reflected in the payroll.
You should ensure that they are complied with Minimum wages Act.
However, i am not sure of Rajastan contract labour act. whether the scope of act covers such outsourced activity and such outsourcing requires to have a specific permission from Labour departnment. In some states, it requires permission. You will have to refer to a expert in labour law.
rgds
vishwanath
From India, Bangalore
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STATUTORY COMPLIANCES CHECK LIST.xls