Dear all,
I am working in a pvt. ltd. company as a HR head in west bengal .
There are 8 contractors are engaged in our manufacturing unit . And under all contractors there are approx. 40 emplyees/labours/workers with each contractors are working .
So, my question is from all HR experts:
1. Can we increase the no. of employee more than 40 in one contractor?
2. In that case,as per law,who is responsible for ESI PF & EPF contributions of contractual labours who is working under contractors .
3. What would be advantages and disadvantages of increasing the no. of employee by 40 in one contractor?
What law says.
From India, Bangalore
I am working in a pvt. ltd. company as a HR head in west bengal .
There are 8 contractors are engaged in our manufacturing unit . And under all contractors there are approx. 40 emplyees/labours/workers with each contractors are working .
So, my question is from all HR experts:
1. Can we increase the no. of employee more than 40 in one contractor?
2. In that case,as per law,who is responsible for ESI PF & EPF contributions of contractual labours who is working under contractors .
3. What would be advantages and disadvantages of increasing the no. of employee by 40 in one contractor?
What law says.
From India, Bangalore
Dear Baghel,
Please find the answers point wise as follows :
You being the principal employer and the concerned contractor being the immediate employer has to take up Labour license for adequate number of resources.Make sure your contractor puts the actual number of resources on its role deployed at your premises while he submits the Half yearly return (Form XXIV) as per the provision of contract labour act.You also need to fill up the annual return with adequate numbers.
The contractor,being the immediate employer,is fully responsible for adhering to all applicable enactments and statutory compliance (Minimum Wages,PF,ESI (Employees compensation),Payment of Bonus,Keeping all the applicable registers,filling of all returns etc).In case the contractor fails to do so,your organization being the principal employer has to take care of all these aspects by adjusting the financial values of all such contributions with the payable to the contractor.
For these please ensure that before registering any contractors with your organization they have all the statutory code with their name and you must conduct timely audit on Statutory matters (at least once in a quater).
For all of these points being adequately taken care of in a cost effective manner,you can also consider to engage our expertise in Contract Staffing/Manpower outsourcing with your organization.
From India, Chandigarh
44Please find the answers point wise as follows :
You being the principal employer and the concerned contractor being the immediate employer has to take up Labour license for adequate number of resources.Make sure your contractor puts the actual number of resources on its role deployed at your premises while he submits the Half yearly return (Form XXIV) as per the provision of contract labour act.You also need to fill up the annual return with adequate numbers.
The contractor,being the immediate employer,is fully responsible for adhering to all applicable enactments and statutory compliance (Minimum Wages,PF,ESI (Employees compensation),Payment of Bonus,Keeping all the applicable registers,filling of all returns etc).In case the contractor fails to do so,your organization being the principal employer has to take care of all these aspects by adjusting the financial values of all such contributions with the payable to the contractor.
For these please ensure that before registering any contractors with your organization they have all the statutory code with their name and you must conduct timely audit on Statutory matters (at least once in a quater).
For all of these points being adequately taken care of in a cost effective manner,you can also consider to engage our expertise in Contract Staffing/Manpower outsourcing with your organization.
From India, Chandigarh
offering skilled labour and unskilled labour across India . We have ESI EPF , Service Tax , Pan Number . for more details call@09608888077 mail- 
Visit – Waken Facility Services Private Limited
From India
From India
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Notification No G.S.R. 1128(E) Contract Labour (Regulation and Abolition) Central Amendment .pdf
LABOUR CONTRACT AGREEMENT.doc
Contract Labour Act.zip