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CONTRACT LABOUR
1. At the outset, it must be ensured that there is no
notification prohibiting contract labour system by the
appropriate government for employment of contract
labour in any process. Operation or any work of the
establishment.
2. Before identifying a contract, it is desirable to
advertise in classified column (which will be
economical) in the local newspaper inviting offers
from the contractors and a copy of newspaper along
with the invoice be preserved.
3. The principal employer is required to obtain
registration under section 7 of the contract Labour (R
& A) Act in form no.1 (in triplicate) to the Registering
officer of the area in which the establishment sough
to be registered is located. The said form shall be
accompanied by demand draft showing the payment
of fees for payment of registration.
4. Only those contractors be identified who have their
own independent code number under the Employees
Provident Fund & MP Act and the ESIC
5. Whenever a contractor will be having 20 or more
persons working for him, it is obligatory that licence
be taken under the Act. Accordingly the principal
employer will issue Form V (Form of certificate by the
15.
No advance should be paid by the principal
employer to the contractors employees directly. Only
contractor must regulate the same.
16.
Maintenance of all types of record in respect of
the employees employed by the contractor should be
his own responsibility and principal employer should
have regular check it.
17.
If the principal employer is covered by the EPFO
and ESIC, then preference should be given to those
contractors who have their own code number under
these Acts.
18.
The principal employer must ensure compliance
of the obligation pertaining to the various provisions
regarding amenities and benefits as prescribed under
the Act.
19.
The principal employer must ensure the
submission of annual return to the prescribed
authority in the prescribed form under the Act.
20.
Experience certificate should not be issued by
the principal employer to the employees of the
contractor.
21.
No Performance appraisal of any sort shall be
made by the Principal employer to the employees of
the contractor.
22.
Principal employer should avoid any settlement
process, either bi partite or tri-partite.
23.
Contractor should prepare and hand over the
pass book to the inter state migrant employees
under the interstate workers migrant Act 1976.
24.
Avoid engagement of on roll and off roll
employees in same or similar job.
25.
26.
Principal employer must send annual returns by
15th February every year.
27.
Principal employer should see that the contract
labour should not work in principal employers
establishment after termination of contract.
28.
The colour of the uniform of the contract labour
should be different than that of employees of the
principal employer.
29.
Canteen facilities if being provided by the
principal employer to its employees the contract
labour should be charged at little higher rate if it is
decided they can also avail such facility.
30.
The
principal
employer
should
get
an
undertaking in the following of each month from the
contractor that not only the wages have been paid to
its employees but also they have enrolled under ESIC