Dear Mr. Keshav Korgaonkar, The contents of Circular is self explanatory to address the matter . Hope all concerned would adhere to the same. Thks, Anil Sharma
From India, Pune
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49From India, Pune
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Dear Mr. Devbrat Jha,
Please go through the query raised by Mr. Krishnan and subsequently my post on the same. We have dealt with a number of such cases as of today. If you are still not convinced or satisfied with my logical explanation, you may revert to me.
Email: anilsv.11@gmail.com
Mobile: +919619186855
From India, Pune
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Please go through the query raised by Mr. Krishnan and subsequently my post on the same. We have dealt with a number of such cases as of today. If you are still not convinced or satisfied with my logical explanation, you may revert to me.
Email: anilsv.11@gmail.com
Mobile: +919619186855
From India, Pune
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Dear Devbrat Jha ji,
I have gone through all the postings once again and found that no member, including myself, has suggested PE issue Form V to the subcontractor.
On the contrary, Shri. Krishnan, who started this thread, mentioned that the PE is asking the Main contractor to deposit the PF of the subcontractor under their code or to issue Form V to the subcontractor to enable them to obtain the labor license.
The members, including myself, replied in response to the query by Shri. Krishnan. The views expressed by individuals may or may not be correct. One can differ with others.
I have stated my opinion with support.
From India, Mumbai
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I have gone through all the postings once again and found that no member, including myself, has suggested PE issue Form V to the subcontractor.
On the contrary, Shri. Krishnan, who started this thread, mentioned that the PE is asking the Main contractor to deposit the PF of the subcontractor under their code or to issue Form V to the subcontractor to enable them to obtain the labor license.
The members, including myself, replied in response to the query by Shri. Krishnan. The views expressed by individuals may or may not be correct. One can differ with others.
I have stated my opinion with support.
From India, Mumbai
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Dear Mr. Sharma and Mr. Korgaonkar,
It is nice to find that so many HR professionals are contributing and exploring the nuances of Labour Laws.
I quote the original querist:
In an NTPC Project, the main contractor has engaged a sub-contractor and offloaded some part of the work. The sub-contractor is recovering the PF contributions from his employees and depositing them under his PF code regularly. The sub-contractors' laborers are covered under the labor license of the Main contractor. NTPC is asking the Main contractor to deposit the PF under their PF code or to issue Form V to the Sub-contractor to enable them to obtain the labor license.
Please advise me on the following:
1. Is it mandatory that the PF contributions be deposited with the Main contractor's PF code only even if the Subcontractor is having a PF registration?
2. Should the Subcontractor have a labor license for depositing the contribution under his PF code?
In the above case, we are talking about two different labor laws, independent of each other. My short and simple reply to the queries are as follows:
1. No, it is not.
2. No, it is not.
Further, on the issue of license under the Contract Labour Act (which in fact is indirectly a point of discussion, not raised by the querist specifically), I am still of the opinion that PE cannot issue two certificates in Form V, one to the main contractor and another to a contractor engaged by the main contractor, particularly in the absence of any contractual relationship between NTPC and the contractor of the main contractor. It is possible only when two separate contracts are awarded.
This is my opinion despite going through the copy of the Circular stated to be issued by the Labor Commissioner, Govt. Of Maharashtra.
The above opinion of mine has been duly endorsed by Shri P K Mukhopadhaya, Ex. Chief Labor Commissioner Of India.
I strongly believe we, as HR professionals, do have the right to hold different opinions. I don't intend to abase or demean anyone's opinions or views.
From India, Pune
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It is nice to find that so many HR professionals are contributing and exploring the nuances of Labour Laws.
I quote the original querist:
In an NTPC Project, the main contractor has engaged a sub-contractor and offloaded some part of the work. The sub-contractor is recovering the PF contributions from his employees and depositing them under his PF code regularly. The sub-contractors' laborers are covered under the labor license of the Main contractor. NTPC is asking the Main contractor to deposit the PF under their PF code or to issue Form V to the Sub-contractor to enable them to obtain the labor license.
Please advise me on the following:
1. Is it mandatory that the PF contributions be deposited with the Main contractor's PF code only even if the Subcontractor is having a PF registration?
2. Should the Subcontractor have a labor license for depositing the contribution under his PF code?
In the above case, we are talking about two different labor laws, independent of each other. My short and simple reply to the queries are as follows:
1. No, it is not.
2. No, it is not.
Further, on the issue of license under the Contract Labour Act (which in fact is indirectly a point of discussion, not raised by the querist specifically), I am still of the opinion that PE cannot issue two certificates in Form V, one to the main contractor and another to a contractor engaged by the main contractor, particularly in the absence of any contractual relationship between NTPC and the contractor of the main contractor. It is possible only when two separate contracts are awarded.
This is my opinion despite going through the copy of the Circular stated to be issued by the Labor Commissioner, Govt. Of Maharashtra.
The above opinion of mine has been duly endorsed by Shri P K Mukhopadhaya, Ex. Chief Labor Commissioner Of India.
I strongly believe we, as HR professionals, do have the right to hold different opinions. I don't intend to abase or demean anyone's opinions or views.
From India, Pune
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Dear All,
I have gone through the comments given by all the echelon in the field of Labour Law and particularly all the nuisance consultants. I beg to differ with Mr. Koregaonkar on the subject of the issuance of Form V to Subcontractors. In this regard, please refer to Section 13 of the CLRA Act, 1970 - Grant of License, and the basic documents needed to be provided to the ALC to issue the Contract Labour License to contractors.
In Maharashtra, the docs required are:
- Form V
- Form IV along with Annexure B
- Affidavit of Contractor
- Work Order / Agreement / Purchase Order
Kindly read the contents of Form V. Since the Principal Employer (PE) has not entered into a work contract with Subcontractors, how will the PE issue Form V to Subcontractors?
Kindly revert with your opinion on the matter.
From India, Mumbai
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I have gone through the comments given by all the echelon in the field of Labour Law and particularly all the nuisance consultants. I beg to differ with Mr. Koregaonkar on the subject of the issuance of Form V to Subcontractors. In this regard, please refer to Section 13 of the CLRA Act, 1970 - Grant of License, and the basic documents needed to be provided to the ALC to issue the Contract Labour License to contractors.
In Maharashtra, the docs required are:
- Form V
- Form IV along with Annexure B
- Affidavit of Contractor
- Work Order / Agreement / Purchase Order
Kindly read the contents of Form V. Since the Principal Employer (PE) has not entered into a work contract with Subcontractors, how will the PE issue Form V to Subcontractors?
Kindly revert with your opinion on the matter.
From India, Mumbai
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Hi,
When any government department issues a tender in the open market, it clearly mentions in the terms and conditions that joint ventures/sub-contractors will not be entertained. In the private sector, this is not an issue.
My suggestion is to refer to the terms and conditions and discuss with the concerned department. If they agree, you should create a simple agreement (ensuring that the sub-contractor complies with various labor laws) and submit it to the department. There is no need for your sub-contractor to procure a contract labor license.
If you have any queries, please contact
.
Thank you.
From India, Mumbai
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When any government department issues a tender in the open market, it clearly mentions in the terms and conditions that joint ventures/sub-contractors will not be entertained. In the private sector, this is not an issue.
My suggestion is to refer to the terms and conditions and discuss with the concerned department. If they agree, you should create a simple agreement (ensuring that the sub-contractor complies with various labor laws) and submit it to the department. There is no need for your sub-contractor to procure a contract labor license.
If you have any queries, please contact
Thank you.
From India, Mumbai
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Very informative. So it is mandatory for a Company to get registered as per act 1970 and issue Form V to the contractor to get his License. Please clarify Lakshmi GM HR SKS
From India, Bangalore
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From India, Bangalore
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Hello,
Responding to your query, Lakshmi, yes, it is mandatory to issue Form V to the contractor and insist on a Labour License. Otherwise, the contractor will not be a separate entity apart from you. This situation could lead to a lot of botheration and avoidable legal complications, including the risk of being considered a 'sham contract.'
KK
From India, Bhopal
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Responding to your query, Lakshmi, yes, it is mandatory to issue Form V to the contractor and insist on a Labour License. Otherwise, the contractor will not be a separate entity apart from you. This situation could lead to a lot of botheration and avoidable legal complications, including the risk of being considered a 'sham contract.'
KK
From India, Bhopal
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