Dear Members
Greetings of the day !!!!!!!
Before engaging any contractor you must complete the following formalities:-
1) Collect one time documents like Contractors PF RC, ESIC RC, PT RC, Shops & Establishment RC, ROC RC, PAN Copy, Service TAx RC etc., and keep it in your records properly.
2) While negotiating the rates with Contractor, many of the companies normally they do mistake by considering the lowest quote, but ensure he quote Minimum Wages as prescribed by the Law for the particular categories of employment / establishment and all other Cost Company factors like PF, ESI etc.,Professional Tax , Labour Welfare Fund (if Any), if the state has a House Rent Allwowance Act etc otherwise in case any difference payments or violations principal employer bounds to pay the same.
3) Have a proper Agreements in the Stamp Paper depending upon the value of the Contract,mention all clauses scientifically, more focus on statutory payments / compliances and other service regulations to avoid disputes
4) Ensure Insurance are covered for all the Contract Employees, wherever ESIC Act not forced, obtain Workmen Compensation Policy in lieu of ESIC Act
5) As a Principal Employer obtain Registration Certificate in Form 2 under CLRA Act before engaging any contractor
6) Insist Contractor to obtain CLRA Licence in case he engages 20 (Some States 10)and more employees
7) Make amendments to Form 2 by providing the list of Contractors as and when their contract is renewed or new contractors engaged.
Or maintain a separate annexure with the the license.
8) Send notice of Commencement of Contract Work or Completion of Contract Work to Labour Department as applicable.
9) File Half Yearly and Annual Returns as applicable.
10) Very important one is as a Principal Employer verify contractors muster and wage registers on monthly basis and certify the same. Many of the companies not adhering this. Apart from this get their ESI, PF payment details, wage slips, employment cards, workmen register etc.,
So, if you follow the above guidelines your establishment is safe.
From India, Kolkata
161Greetings of the day !!!!!!!
Before engaging any contractor you must complete the following formalities:-
1) Collect one time documents like Contractors PF RC, ESIC RC, PT RC, Shops & Establishment RC, ROC RC, PAN Copy, Service TAx RC etc., and keep it in your records properly.
2) While negotiating the rates with Contractor, many of the companies normally they do mistake by considering the lowest quote, but ensure he quote Minimum Wages as prescribed by the Law for the particular categories of employment / establishment and all other Cost Company factors like PF, ESI etc.,Professional Tax , Labour Welfare Fund (if Any), if the state has a House Rent Allwowance Act etc otherwise in case any difference payments or violations principal employer bounds to pay the same.
3) Have a proper Agreements in the Stamp Paper depending upon the value of the Contract,mention all clauses scientifically, more focus on statutory payments / compliances and other service regulations to avoid disputes
4) Ensure Insurance are covered for all the Contract Employees, wherever ESIC Act not forced, obtain Workmen Compensation Policy in lieu of ESIC Act
5) As a Principal Employer obtain Registration Certificate in Form 2 under CLRA Act before engaging any contractor
6) Insist Contractor to obtain CLRA Licence in case he engages 20 (Some States 10)and more employees
7) Make amendments to Form 2 by providing the list of Contractors as and when their contract is renewed or new contractors engaged.
Or maintain a separate annexure with the the license.
8) Send notice of Commencement of Contract Work or Completion of Contract Work to Labour Department as applicable.
9) File Half Yearly and Annual Returns as applicable.
10) Very important one is as a Principal Employer verify contractors muster and wage registers on monthly basis and certify the same. Many of the companies not adhering this. Apart from this get their ESI, PF payment details, wage slips, employment cards, workmen register etc.,
So, if you follow the above guidelines your establishment is safe.
From India, Kolkata
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