I have suppliers in an outside company. We have a written agreement for material supply. In this regard, suppliers' employees have ESI & EPF compliance fully in place. However, if an employee comes to supply under my premises and there is an accident, who will be responsible? What procedure should we follow, and who should notify the government officials?
We have an umbrella contract in the company, and we are pushing suppliers to operate under this umbrella contract. The umbrella contract checks ESI & EPF compliance thoroughly, but it's only for verification. In the event of an accident, what further processes should be followed? Can you explain to someone experienced in this field?
From India, Chennai
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We have an umbrella contract in the company, and we are pushing suppliers to operate under this umbrella contract. The umbrella contract checks ESI & EPF compliance thoroughly, but it's only for verification. In the event of an accident, what further processes should be followed? Can you explain to someone experienced in this field?
From India, Chennai
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Dear Sapthagiri,
According to the Contract Labour Act, the ultimate responsibility falls on the principal employer if the same is not provided and fulfilled by the immediate employer. This includes providing shelter, restrooms, canteen facilities, first aid, ensuring safety, timely wage payments, compensation, and compliance with statutory regulations.
Thank you for your attention to this matter.
Best regards,
[Your Name]
From India, undefined
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8According to the Contract Labour Act, the ultimate responsibility falls on the principal employer if the same is not provided and fulfilled by the immediate employer. This includes providing shelter, restrooms, canteen facilities, first aid, ensuring safety, timely wage payments, compensation, and compliance with statutory regulations.
Thank you for your attention to this matter.
Best regards,
[Your Name]
From India, undefined
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Dear Sapthagiri, If you go through the definition of the term "contractor" under Section 2(1)(c) of the CLRA Act, 1970 a little more carefully, I think you can find the answer yourself. The definition encompasses only those contractors who commit to producing a specific result for the establishment through contract labor or who provide contract labor for any work of the establishment, including subcontractors. Furthermore, the definition explicitly excludes individuals with any contractual obligation to supply goods or manufactured articles.
The supply of materials can be facilitated either through third parties like courier services or by direct personal door delivery, depending on the terms of the material supply contract between the establishment and the supplier. In both scenarios, the employment of human labor is inevitable. Consequently, neither the contractee/establishment becomes a "principal employer" nor the contractor/material supplier becomes a "contractor" under the CLRA Act, 1970.
The employment accident risks faced by the material supplier's employees must naturally be borne by the material supplier alone.
From India, Salem
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The supply of materials can be facilitated either through third parties like courier services or by direct personal door delivery, depending on the terms of the material supply contract between the establishment and the supplier. In both scenarios, the employment of human labor is inevitable. Consequently, neither the contractee/establishment becomes a "principal employer" nor the contractor/material supplier becomes a "contractor" under the CLRA Act, 1970.
The employment accident risks faced by the material supplier's employees must naturally be borne by the material supplier alone.
From India, Salem
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Dear contributing members,
I believe that the person responding to queries bears implicit accountability. Therefore, when answering a query, please ensure a proper understanding of legal points, facts, and reasoning so that knowledge seekers receive accurate information and solutions and are not misled.
I hope moderators would agree with me as, in the last few posts, I have noticed some straightforward, superficial, layman's answers.
Shailesh Parikh
99 98 97 10 65
Vadodara
From India, Mumbai
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I believe that the person responding to queries bears implicit accountability. Therefore, when answering a query, please ensure a proper understanding of legal points, facts, and reasoning so that knowledge seekers receive accurate information and solutions and are not misled.
I hope moderators would agree with me as, in the last few posts, I have noticed some straightforward, superficial, layman's answers.
Shailesh Parikh
99 98 97 10 65
Vadodara
From India, Mumbai
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Dear concerned,
Everyone has their own separate way to express and explain. Every person who has some knowledge can offer insights to make the issue clear. However, it is not fair to dismiss a layman's answer. We should always mind our own business and do the best we can.
Thank you.
From India, undefined
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Everyone has their own separate way to express and explain. Every person who has some knowledge can offer insights to make the issue clear. However, it is not fair to dismiss a layman's answer. We should always mind our own business and do the best we can.
Thank you.
From India, undefined
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Query itself is incomplete, though after repeated reading it is still hard to understand that the person who got injured in goods handling belongs to:
a) supplier
b) recipient
c) logistic channel partner
And to whomever it would belong, the principal employer has to ensure that they maintain the labor law formalities; otherwise, accept the responsibility for the same.
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a) supplier
b) recipient
c) logistic channel partner
And to whomever it would belong, the principal employer has to ensure that they maintain the labor law formalities; otherwise, accept the responsibility for the same.
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In simple terms, if it is to be explained, in the case of a failure of the contractor to fulfill his legal responsibilities stipulated under the Contract Labour Act, the principal employer is held accountable. I hope my learned colleague will agree.
R. R. Kapoor
Vadodara
From India, Vadodara
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R. R. Kapoor
Vadodara
From India, Vadodara
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Dear friends,
The liability enjoined upon a Principal Employer under the CLRA Act, 1970 against the omissions and commissions of a Contractor which affect the contract labor is in the nature of vicarious liability only. However, such vicarious liability arises only when there exists the relationship of Principal Employer and Contractor between the parties. As the contract to supply materials mentioned in the post is not a contract contemplated by the Act, there is no possibility of charging the Company, which is just a contractee, with accountability for any accidents likely to happen to the supplier's employees during the course of their employment.
From India, Salem
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The liability enjoined upon a Principal Employer under the CLRA Act, 1970 against the omissions and commissions of a Contractor which affect the contract labor is in the nature of vicarious liability only. However, such vicarious liability arises only when there exists the relationship of Principal Employer and Contractor between the parties. As the contract to supply materials mentioned in the post is not a contract contemplated by the Act, there is no possibility of charging the Company, which is just a contractee, with accountability for any accidents likely to happen to the supplier's employees during the course of their employment.
From India, Salem
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