HR CONNECT
Engagement of Contract Labour is an age old practice. With the introduction of new economic policy, this has assumed greater importance.
Even today, in the business world, this is the most talked about subject. Employers of various industries – from micro to large – do depend on this workforce in order to sustain and as Principal Employers, they need to take utmost care when they engage a contractor. Besides being compliant, they have to ensure that the contractors engaged by them to stay compliant.
Some of the important activities:
- Registration & license under Contract Labour Regulation and Abolition Act
- Payment of minimum wages to contract labourers
- Timely payment of minimum wage, bonus, leave wages etc
- Maintaining records, registers, forms & notices under various legislations
- Remittances of ESI, EPF & LWF contributions for contract workers
- Compliance under BOCW Act and ISMA Act
- Accident related compliance for contract workers
- Retirement or terminal benefit for contract workers
- Maternity benefits for contract labourers
Possible consequences if not complied with
- Absorption of the contract labourers
- Payment of arrears of contribution with interest
- Fine and / or imprisonment
- Prosecution of the employer or board of director
Our Contract Labour Compliance Services is beneficial for all stakeholders: the principal employer, contract workforce and the contractor. We have pioneered in the engagement of blue-collared workers in organizations. Our efforts in ensuring minimum wages, timely remittance of ESI, EPF and LWF payments and access to health care have enhanced their quality of life and generated impact on their families.
Service Highlights
- Management of time office
- Obtain Registration Certificate(RC)
- Obtain license for each applicable contractor if applicable
- Maintain contractor-wise registers, records and returns
- Ensure minimum wage payment through effective processes