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Engagement of Contract Labour is an age old practice. With the introduction of new economic policy, this has assumed greater importance.

Even today, in the business world, this is the most talked about subject. Employers of various industries - from micro to large – do depend on this workforce in order to sustain and as Principal Employers, they need to take utmost care when they engage a contractor. Besides being compliant, they have to ensure that the contractors engaged by them to stay compliant.

Some of the important activities:

  • Registration & license under Contract Labour Regulation and Abolition Act

  • Payment of minimum wages to contract labourers

  • Timely payment of minimum wage, bonus, leave wages etc

  • Maintaining records, registers, forms & notices under various legislations

  • Remittances of ESI, EPF & LWF contributions for contract workers

  • Compliance under BOCW Act and ISMA Act

  • Accident related compliance for contract workers

  • Retirement or terminal benefit for contract workers

  • Maternity benefits for contract labourers

Possible consequences if not complied with

  • Absorption of the contract labourers

  • Payment of arrears of contribution with interest

  • Fine and / or imprisonment

  • Prosecution of the employer or board of director

Even today, in the business world, this is the most talked about subject. Employers of various industries - from micro to large – do depend on this workforce in order to sustain and as Principal Employers, they need to take utmost care when they engage a contractor. Besides being compliant, they have to ensure that the contractors engaged by them to stay compliant.

Service Highlights

  • Management of time office

  • Obtain Registration Certificate(RC)

  • Obtain license for each applicable contractor if applicable

  • Maintain contractor-wise registers, records and returns

  • Ensure minimum wage payment through effective processes

  • EPF and ESI contribution through principal employer's sub code / contractor's code

  • Coordination of benefits under EPF, ESI, LWF & WC for CL

  • Accident coordination support

The Naithik HR Advantage

  • Hassle free processes in engaging contract workforce

  • Technology driven services for routine 'on location' compliance as well as back-up data

  • Instant access to knowledge and information on nation-wide differences in contract labour engagement

  • Maintain contractor-wise registers, records and returns

  • Expertise in labour legislation consultation for board level decision making

  • Eliminates the need to deal with the contractors for compliance related aspects

  • Customized processes to regulate and monitor the engagement of contract workforce

  • 24/7 compliance support

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