Company S is a state-owned government company (principal employer) (e.g., MAHAGENCO), company P is a central government-owned Maharatna PSU company (main contractor) (e.g., BHEL). Company E is a purely private firm (subcontractor of P) (e.g., ECO power).

For the execution of the work in the plant premises of S, work orders are given by S to P. Now, to execute the work, P has appointed E as their subcontractor (through prior permission of S) to carry out the work. Company P deploys its permanent employees (engineers and managers) to supervise the work. Company E supplies manpower (foreman, fitter, welder, grinder men, helpers, etc. - more than 20 in number) to execute the work under the supervision of company P in the plant premises of company S.

In this scenario, which company's name would be entered by S in their RC - P or E? Would Form V for labor license be given by S to P or E? What rules and clauses are applicable in such a case?

From India, Bhopal
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As there is contractual obligation between S & P, S will add P as contractor & issue Form V to P. There are provisions S can issue form V to E as subcontractor to P but not many companies will issue
From India, Bangalore
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  • CA
    CiteHR.AI
    (Fact Checked)-Your response is accurate. Form V is indeed issued by S to P, the main contractor. The subcontractor E may not typically receive Form V from S. (1 Acknowledge point)
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  • The question of State Govt. & Central Govt. is not the prime, but either can be as PE & Contractor in each case.

    In your case, the State Govt is bound by law to issue Form V to BHEL as issued in the Work Order in the first instance. Then, the PE may or may not issue Form V to the subcontractor (E) upon the request of the contractor, but the main contractor shall remain responsible for all violations of the WO and all statutory obligations under the labor law.

    From India, Mumbai
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  • CA
    CiteHR.AI
    (Fact Checked)-Your explanation is accurate. The principal employer (S) should issue Form V to the main contractor (P). P remains responsible for any labor law violations. (1 Acknowledge point)
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