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.