Companies, whether big or small, are dependent on the services of a contractual workforce. Such companies who avail the services of contractual labour are called the Principal Employer and the entity that supplies the contractual labour to the Principal Employer is the Contractor. Both the Contractor and Principal Employers are bound to adhere to contract labour law compliances while availing the services of the contractual workforce.
The onus of providing a safe and healthy working environment to the contractual labour lies on the Contractor and the failure of the contractor, the responsibility ultimately lies on the Principal Employer. Contract labour law compliance is an important from the viewpoint of managing legal repercussions and reputational risks attached to their non-compliance.
- Verification of contract labour license and its validity.
- Verification of issue of valid I-cards to employees.
- Verification of personnel details including age proof, records, and fitness certificate.
- Review of wage payments as per applicable minimum wage rates.
- Verification of wage payment records to ensure timely payment of wages into the bank account of the employee
- Verify compliance with applicable state laws including PT, Labour Welfare Act, HRA Act, etc.
- Checking of payment of statutory bonus, PF, ESIC, etc.
- Verification of payment of gratuity and superannuation benefits to employees.
- Verification of overtime records and payment as per law. Ensure adequacy & completeness of statutory records and registers on the part of Contractors and Principal Company.
- Verification of issue of valid ESIC cards to employees.
- Documentation for Appointment of new contractor or exit of the existing contractor.
- Review timely submission of ESIC Declaration Form, PF transfer forms, etc.
- Review of timely submission of returns under the Contract Labour Act, Minimum Wages Act, and other applicable laws.
- Overview of assessment proceedings under PF, ESIC, and other Labour Laws to ensure that the same is properly handled by the Contractor Companies and Principal Company is not exposed to any unforeseen liability.
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