Respected Seniors,
I am a pioneer in Human Resource Management. Please guide on "If a company appoints a Canteen Contractor on its premises, do the casual employees of the Canteen Contractor come under statutory compliance such as PF, ESI? If yes, how, because the company is paying for food or plate charges? How should their attendance be maintained?"
From India, Madurai
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1I am a pioneer in Human Resource Management. Please guide on "If a company appoints a Canteen Contractor on its premises, do the casual employees of the Canteen Contractor come under statutory compliance such as PF, ESI? If yes, how, because the company is paying for food or plate charges? How should their attendance be maintained?"
From India, Madurai
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Hi,
1. Sir, the canteen employees engaged through a contractor are covered under the EPF & MP Act as well as under the ESI Act, 1948. The compliance is to be made based on the records of payment of wages and attendance as maintained by the said contractor in the normal course of his business/work. The inspecting authorities under the above Acts, when conducting inspections, will also demand the production of records of the canteen contractor and show compliance in respect of the said contractor employees.
2. In case compliance is not found to be satisfactory to the authorities, the competent authorities can claim contributions on an ad hoc basis as per the information available to them. For non-production of records and non-compliance of any category of employees, prosecution can also be launched under the provisions of the said Act(s).
From India, Noida
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1. Sir, the canteen employees engaged through a contractor are covered under the EPF & MP Act as well as under the ESI Act, 1948. The compliance is to be made based on the records of payment of wages and attendance as maintained by the said contractor in the normal course of his business/work. The inspecting authorities under the above Acts, when conducting inspections, will also demand the production of records of the canteen contractor and show compliance in respect of the said contractor employees.
2. In case compliance is not found to be satisfactory to the authorities, the competent authorities can claim contributions on an ad hoc basis as per the information available to them. For non-production of records and non-compliance of any category of employees, prosecution can also be launched under the provisions of the said Act(s).
From India, Noida
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I am curious. What makes you a pioneer?
Please read the Contract Labour Act. The definition of contract labour is any person who is working on your premises because you have an agreement with his direct employer to deliver some result. So the canteen workers are contractors, and all regulations apply.
So it does not matter how the contract amount is computed. You are still liable to ensure his workers are paid minimum wages, overtime if necessary, all statutory dues are deposited with the government, and that they are working normal shift hours and get proper paid leave as provided in the relevant legislation.
From India, Mumbai
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Please read the Contract Labour Act. The definition of contract labour is any person who is working on your premises because you have an agreement with his direct employer to deliver some result. So the canteen workers are contractors, and all regulations apply.
So it does not matter how the contract amount is computed. You are still liable to ensure his workers are paid minimum wages, overtime if necessary, all statutory dues are deposited with the government, and that they are working normal shift hours and get proper paid leave as provided in the relevant legislation.
From India, Mumbai
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Dear friend,
I am accountant working as an accountant and my work is to issue work order for sub-contractors . So , what i will suggest you is to mention below line on your work order for "
is the casual employees of Canteen Contractor comes under statutory compliance viz.pf,esi," ---You will follow all the labour laws and other local laws and will obtain a License. You will Pay P.F/ESI  as applicable for the employee deployed by you. We are in no case responsible for any such payment. Alternatively BSC-C&C’JV’ will deduct P.F .25%.
--- Or --- You will follow all the labour laws and other local laws and will obtain a License. You will Pay P.F/ESI  as applicable for the employee deployed by you. We are in no case responsible for any such payment. Alternatively Company’ will deduct P.F .25%.
Hope that it will help you.
Thank you :)
From India, Bangalore
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I am accountant working as an accountant and my work is to issue work order for sub-contractors . So , what i will suggest you is to mention below line on your work order for "
is the casual employees of Canteen Contractor comes under statutory compliance viz.pf,esi," ---You will follow all the labour laws and other local laws and will obtain a License. You will Pay P.F/ESI  as applicable for the employee deployed by you. We are in no case responsible for any such payment. Alternatively BSC-C&C’JV’ will deduct P.F .25%.
--- Or --- You will follow all the labour laws and other local laws and will obtain a License. You will Pay P.F/ESI  as applicable for the employee deployed by you. We are in no case responsible for any such payment. Alternatively Company’ will deduct P.F .25%.
Hope that it will help you.
Thank you :)
From India, Bangalore
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Writing any such nought in the contract is nothing but a measure to protect your own backside.
In law, this will make very little difference. You are still liable to ensure compliance and this does not absolve you of your requirements. The law, anyway, allows you to recover such cost as a debt. But you're likely horde of having done that is minimal.
So, while writing this is a good idea from the legal point of view of fighting against your contract in a court of law, in reality, it does nothing. You will need to was still monitor the compliance and ensure that it is done.
From India, Mumbai
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In law, this will make very little difference. You are still liable to ensure compliance and this does not absolve you of your requirements. The law, anyway, allows you to recover such cost as a debt. But you're likely horde of having done that is minimal.
So, while writing this is a good idea from the legal point of view of fighting against your contract in a court of law, in reality, it does nothing. You will need to was still monitor the compliance and ensure that it is done.
From India, Mumbai
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Dear All, Thank you for your comments....!!! Kindly advice the calculation of Annual Return Form of Contract Labour Form No.XXV to be filled by Principal employer. Thanking you in anticipation....
From India, Madurai
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From India, Madurai
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Hello sir,
Please send me details on how we will start a canteen facility in our company. I am new here as an HR assistant.
Please provide me with all the details regarding the appointment of the canteen contractor and their pay.
Kindly send all the details to: jayjadhav77@gmail.com and to India's best HR site, the one and only www.citehr.com.
Thanks and regards,
Jay
From India, New%20Delhi
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Please send me details on how we will start a canteen facility in our company. I am new here as an HR assistant.
Please provide me with all the details regarding the appointment of the canteen contractor and their pay.
Kindly send all the details to: jayjadhav77@gmail.com and to India's best HR site, the one and only www.citehr.com.
Thanks and regards,
Jay
From India, New%20Delhi
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Dear Jay,
Hereby attaching a summary for the appointment of a canteen contractor as per the government process. Being a private entity, you may not need to follow some processes; choose as per your requirements. If it suits your needs, I can send you other formats.
Best of luck for a fruitful career!
Regards,
From India, Madurai
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Hereby attaching a summary for the appointment of a canteen contractor as per the government process. Being a private entity, you may not need to follow some processes; choose as per your requirements. If it suits your needs, I can send you other formats.
Best of luck for a fruitful career!
Regards,
From India, Madurai
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Sir,
It appears that the contractor is functioning from his house and not on the premises of the employer. The employer buys food items or plates from the contractor. If the food items are served by the contractor on the employer's premises, the employer must comply with PF, ESI, and other legal requirements.
If the employer is a factory, the minimum wages of the Scheduled employments have to be paid by the Contractor. Are minimum wages applicable to the employees of the factory? Or are the minimum wages applicable to the Shops and Establishment Act, or Hotels and Restaurants?
If the food items are bought by the employer or his staff and distributed by the employer himself, will it not be a different situation?
From India, Mumbai
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It appears that the contractor is functioning from his house and not on the premises of the employer. The employer buys food items or plates from the contractor. If the food items are served by the contractor on the employer's premises, the employer must comply with PF, ESI, and other legal requirements.
If the employer is a factory, the minimum wages of the Scheduled employments have to be paid by the Contractor. Are minimum wages applicable to the employees of the factory? Or are the minimum wages applicable to the Shops and Establishment Act, or Hotels and Restaurants?
If the food items are bought by the employer or his staff and distributed by the employer himself, will it not be a different situation?
From India, Mumbai
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Notification No G.S.R. 1128(E) Contract Labour (Regulation and Abolition) Central Amendment .pdf
LABOUR CONTRACT AGREEMENT.doc
Contract Labour Act.zip