Could you please tell me that what are the obligations of the principal employer and contractor under CLRA Act, 1970.
From India
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From India
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1. The principal employer must ensure that he has obtained registration if he engages 20 or more contract laborers.
2. If any one contractor is engaging 20 or more workers, the principal employer should ensure that the contractor has a license to engage contract labor and is renewed every year.
3. The principal employer should ensure that the contractor is paying wages (also ensure that he is paying at least the minimum wages fixed by the government) within seven days, the time prescribed under the Payment of Wages Act. He should also ensure that the employees are getting facilities like a canteen, restrooms, etc.
4. He should ensure that the contractor is duly paying the ESI and EPF in respect of employees engaged in his establishment.
5. The principal employer is not expected to employ contract labor in activities that are perennial in nature and can be performed by regular workers. If he engages contract labor for work of a regular nature, there can be intervention by the government to prohibit such engagement. If prohibited, the principal employer should not engage any more contract labor.
6. The contract should not be a sham contract. A sham contract is one that is just for namesake, but the control and supervision over the workers will be in the hands of the principal employer. If a contract is found to be sham, the workers can claim regularization as permanent employees of the principal employer.
7. The principal employer should not directly control the workers of the contractor. He should not become a party to any wage settlement between the contractor and his workers. He should not initiate disciplinary action against the contract workers nor should he be the authority to grant leave to them. All these will lead to declaring the contract to be a sham or camouflage.
Please read a write-up on the above on my blog following the given link:
http://madhu-t-k.blogspot.com/2010/1...ct-labour.html
Regards,
Madhu.T.K
From India, Kannur
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44762. If any one contractor is engaging 20 or more workers, the principal employer should ensure that the contractor has a license to engage contract labor and is renewed every year.
3. The principal employer should ensure that the contractor is paying wages (also ensure that he is paying at least the minimum wages fixed by the government) within seven days, the time prescribed under the Payment of Wages Act. He should also ensure that the employees are getting facilities like a canteen, restrooms, etc.
4. He should ensure that the contractor is duly paying the ESI and EPF in respect of employees engaged in his establishment.
5. The principal employer is not expected to employ contract labor in activities that are perennial in nature and can be performed by regular workers. If he engages contract labor for work of a regular nature, there can be intervention by the government to prohibit such engagement. If prohibited, the principal employer should not engage any more contract labor.
6. The contract should not be a sham contract. A sham contract is one that is just for namesake, but the control and supervision over the workers will be in the hands of the principal employer. If a contract is found to be sham, the workers can claim regularization as permanent employees of the principal employer.
7. The principal employer should not directly control the workers of the contractor. He should not become a party to any wage settlement between the contractor and his workers. He should not initiate disciplinary action against the contract workers nor should he be the authority to grant leave to them. All these will lead to declaring the contract to be a sham or camouflage.
Please read a write-up on the above on my blog following the given link:
http://madhu-t-k.blogspot.com/2010/1...ct-labour.html
Regards,
Madhu.T.K
From India, Kannur
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