We are a Public Ltd company and undertake EPC contracts for hydro power generation plant. We also having a factory where we manufacture equipment for hydro power plant.
However, we undertake complete order for supply of equipment as well as erection and commissioning thereof at site for our customer(may be private Developer or Govt Electricity Boards).
Equipment are supplied from our factory or directly from market by our vendors on our behalf to our Customer/ Developer. But the work of erection and commmissioning is got done by us through sub-contractor for our customer/developer under our supervision.
Normally the projects are put-up in remote place (any working site for the first time) where water fall is available.
Now the position is as under :-
1. Owner of Project : Developer
2. We (Supplier of Equipment &
also a contractor being responsible for Erect/Comm)
3. Sub-Contracor(the agency for doing Erect/Commissioning work for Developer on our behalf.
The payment for the work done by sub-contractor are made by us and we, in turn, charge for entire erction commissioning and supervision thereof from Developer.
The sub-contractor directly have no relation with developer for work done. We hire sub contractor and make them payment.
Questions:
1. Who is responbile to issue Form-V to the sub-contractor engaging labour for doing erection/ commissioning work -whether Developer or Contractor(We)?
2. Whether it is necessary to have Regn Certification (RC) under CLRA before issuing Form-V to its Contractor or it can issue Form-V without having RC ?
3. Whether PF is applicable in case the sub-contractor is not having more than 20 workmen at a particular site at any day. Though he may or may not be having workmen at any other place/site.
4. What is our (contractor's) responsibility w.r.t. ESIC as a principal employer for our sub-contractor. Whether an ESI Inspector can ask for ESI compliance for the payment made to sub-contractor for work done at project ?
5. Is it necessary for a contractor to have Form-V under CLRA for Registration under EPF Act and ESI Act ? Can PF or ESI Authority also allot CODE without Form-V to a contractor?
Anticipating your expert comments / reply to the above queries.
With regards,
SK Yadav
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1) The CLRA Act includes the sub-contractor within the meaning of contractor. Hence Form V is issued only by the Principal Employer to the Contractor. A contractor need not isse any separate form V for the sub-contractor as hte contractor does not becoem the principal employer vis a vis the sub-contractor.
2) Registration is necessary.
3) PF is applicable even in case the workers engaged by sub-contractor is less than 20
4) ESI is also applicable.
5) ESI & PF can be done even without Form V
