Dear Sir,

I would like to know if we are the O&M contractor of the Client company. The Client company has 35 employees, and we are contractors with 258 employees. However, I am uncertain whether canteen facilities should be provided by the client company or the contractor company in this case.

I would appreciate your suggestions.

Thank you.

From India, New Delhi
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Dear KEPCO HR,

I would like to request you to review sections 16 and 20 of the CLRA Act, 1970. Section 16(1)(c) mandates the contractor to establish and maintain one or more canteens where 100 or more contract laborers are regularly employed. Section 20 imposes vicarious liability on the Principal Employer in the event of the contractor's failure to comply promptly and authorizes them to make proportionate deductions from the amounts owed to the contractor.

I trust that you now comprehend the situation.

From India, Salem
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Dear Sir (Umakanthan),

Thank you for your prompt reply. Yes, I have gone through the above sections, but I would also like to say that the Factory Act of 1948, Section 46, mentions, "The State Government may make rules requiring that in any specified factory wherein more than two hundred and fifty workers are ordinarily employed, a canteen or canteens shall be provided and maintained by the occupier for the use of the workers."

The Factory Act is a governing act, so we should follow this act. There is a big confusion. Kindly help with this.

From India, New Delhi
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Dear KEEPCO HR,

As per the information provided by you, in your client company, the strength of workers - regular and contract is more than 250 employees. Consequently, the principal employer has to provide canteen facilities to the workmen.

From India, New Delhi
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I do agree with the observation of the learned friend Srinath. By virtue of the definition of the term "worker" under the Act, the number of labor, including contract labor, casual labor, etc., is included in the maximum number of workers to be employed on the premises for the purpose of granting registration and a license under the Act.
From India, Salem
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