"Party A" awards a contract for materials and services to "Party B" on a principal-to-principal basis. "Party B" enters an agreement with a contractor, "Party C," for manpower supply. "Party C" deploys its employees as contract labor. Party B is responsible for the supervision. Services are rendered at the premises of Party A.

Query: Who is the principal employer?

From India, Kolkata
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nathrao
3251

Principal employer will remain A. A has entered into a contract with B to provide supplies, and B has subcontracted it to C. The relationship between C and A is only through B, and there is no privity of contract between C and A. Was there any clause preventing subcontracting.
From India, Pune
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What is principal to principal basis?
From India, Thiruvananthapuram
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nathrao
3251

Principal to principal contract means a contract where in both the people to the contract have entered into a contract in their own capacity with no agents in between.
From India, Pune
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Mr. Nathrao, There is no clause preventing subcontracting.
From India, Kolkata
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nathrao
3251

It would have been safe if no outsourcing was mentioned as a clause in the contract. Notwithstanding this, A has the liability as the principal employer.

All contracts must have certain vital details mentioned, depending on the nature of the contract. Have a standard contract for such hiring contracts that cover you legally and are up to date as per legal provisions.

From India, Pune
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Dear Mr. Nathrao, I forgot to mention I am Party B in the scheme of things. Thanks for your valuable inputs. Best Regards
From India, Kolkata
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