Dear All,
Need some inputs from my seniors and experts from the industry.
I want some clarifications as to what is the difference between hiring people on direct contract and through 3rd party contract and as a employer what are our direct and indirect obligations for such kind of employment.?
From India, Hyderabad
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Need some inputs from my seniors and experts from the industry.
I want some clarifications as to what is the difference between hiring people on direct contract and through 3rd party contract and as a employer what are our direct and indirect obligations for such kind of employment.?
From India, Hyderabad
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There is hardly any difference between employing through direct contractor and third party contractor. In both the cases the employer who employs is Principal Employer and he has connection only with the immediate contractor. As such he has to ensure that wages to the workers employed through the contractor/ sub contractor are paid in time and as per law. Since he will make payments only to the immediate contractor/ sub contractor he need not look into what agreement exists between the immediate contractor and the contractor who apoints him.
I believe that we can have more ideas on this matters from other friends also so that we can have a general picture about it.
Regards,
Madhu.T.K
From India, Kannur
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4769I believe that we can have more ideas on this matters from other friends also so that we can have a general picture about it.
Regards,
Madhu.T.K
From India, Kannur
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I was going through some old posts that had no proper thread to revive. Contract labour, being a sensitive topic, I thought of extending it further and put to use.
Mr.Madhu, you are right. In both the cases, compliance of labour contract act comes into picture. The prescribed registers for Contract Labour has to be followed :
i) By Principal Employer, if it directly employs contract staff at its project site
ii) By Contractor, if the contractor is engaged by principal employer at its site
The following Registers are to be maintained as per Labor Contract Act.
a) Muster Roll Form XVI
b) Register of Wages Form XVII
c) Wages/Muster Roll Form XVIII
d) Register of deduction Form XX
e) Register of Fines Form XXI
f) Register of Advance Form XXII
g) Register of Overtime Form XXIII
It is also understood that i) the contractor shall indemnify the Company against all losses or damages, if any, caused to it on account of acts of the personnel deployed by him.
ii) The contractor shall ensure regular and effective supervision and control of the personnel deployed by him and gives suitable direction for under taking the contractual obligations.
Hope Pawan is clear now.
Regards,
Chandru
From India, Madras
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Mr.Madhu, you are right. In both the cases, compliance of labour contract act comes into picture. The prescribed registers for Contract Labour has to be followed :
i) By Principal Employer, if it directly employs contract staff at its project site
ii) By Contractor, if the contractor is engaged by principal employer at its site
The following Registers are to be maintained as per Labor Contract Act.
a) Muster Roll Form XVI
b) Register of Wages Form XVII
c) Wages/Muster Roll Form XVIII
d) Register of deduction Form XX
e) Register of Fines Form XXI
f) Register of Advance Form XXII
g) Register of Overtime Form XXIII
It is also understood that i) the contractor shall indemnify the Company against all losses or damages, if any, caused to it on account of acts of the personnel deployed by him.
ii) The contractor shall ensure regular and effective supervision and control of the personnel deployed by him and gives suitable direction for under taking the contractual obligations.
Hope Pawan is clear now.
Regards,
Chandru
From India, Madras
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Hi, Sir,
I had a compliance dispute and required some suggestions on how to claim or sue in the court of law. Here are the illustrations:
Company 'A' had appointed employees to a client company, B. These employees were working for Client company B under a contract for six months. The contract was later extended for another six months. However, the salary was being paid by Client company B to Company 'A', which then credited the salary to the employees.
The contract ended after 12 months, from Jan 13 to Jan 14, but now Company 'A' is not providing a new contract letter for a further 12 months. The old contract letter included clauses stating that an appraisal would be conducted after the completion of twelve months. Company 'A' now claims that it's a client-driven process. However, when approached, Client company B states that this process is controlled by Company 'A', which appointed the employees on a third-party payroll basis.
I am confused about who is responsible for this cycle - Company 'A', the employees, or Client company B.
Thanks & Regards,
Mahendar Marri
From India, Mumbai
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I had a compliance dispute and required some suggestions on how to claim or sue in the court of law. Here are the illustrations:
Company 'A' had appointed employees to a client company, B. These employees were working for Client company B under a contract for six months. The contract was later extended for another six months. However, the salary was being paid by Client company B to Company 'A', which then credited the salary to the employees.
The contract ended after 12 months, from Jan 13 to Jan 14, but now Company 'A' is not providing a new contract letter for a further 12 months. The old contract letter included clauses stating that an appraisal would be conducted after the completion of twelve months. Company 'A' now claims that it's a client-driven process. However, when approached, Client company B states that this process is controlled by Company 'A', which appointed the employees on a third-party payroll basis.
I am confused about who is responsible for this cycle - Company 'A', the employees, or Client company B.
Thanks & Regards,
Mahendar Marri
From India, Mumbai
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Legal Clarification on Negative Covenants in Employment Agreements.pdf