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L.C.PAL (n/a)     19 October 2007

ESI & PF AT SITE

Dear All,

We are a mfg. unit in the business of Hydro Turbines & Associates.   We received orders from State Govts./Private Developers for manufactruing, installation & upto first time start of the Turbine Machine (turbine machine generates electricity). 

Further to execute the order we hire contractors (Civil & Mechanical) whose having their workforce and we have no control over their workforce.   The contractors having workforce 5-- 20/25.    We pay to contractors on the basis of completion of work not on the basis of engagement of labour per day/per month.   All the times our sites are in the remote areas.  

Now situation is this that :

1------ We received Order from State Govt./Private Developers

2-----  We further distribute work to another contractors.

Now questions arise:   1) Who is Principal Employer  ?   2)  Who will issue Form - V under Contract Labour (R&A) Act, ?   3)  Is there any liability of P.F. ?    4)  is there any liability of E.S.I. ?  

Keep in view that our almost sites are in the remote areas.  Please give your expert comments on the said question.   Thanking you very much in anticipation.

Regards

L.C.Pal

09811444654

 

 

 


Learning

 6 Replies

Shambasiv (n/a)     19 October 2007

The attachment will be useful for your doubts on CLRA act

Prakash Yedhula (Lawyer)     19 October 2007

Find attached the opinion rendered by me in Tamilnadu regarding the statutory compliances for construction company.

Prakash Yedhula (Lawyer)     19 October 2007

[font=tahoma]1) Who is Principal Employer?

 In the case of the Government or local authority ΓÇô the Head of the Office or department or local authority or any other officer specified in this behalf by the Government or local authority.

 In the case of a factory, the owner or occupier of the factory and the Manager appointed under the Factories Act. 

 In the case of a mine, the owner or agent of the mine and the Manager of the Mine.

In any other establishment the person who is responsible for supervision and control of the establishment.

2) Who will issue Form - V under Contract Labour (R&A) Act, ?

For V will be issued by the Principal Employer to the Contractor

3)  Is there any liability of P.F. ?  

4)  is there any liability of E.S.I. ?  

Yes

 



[/font]

L.C.PAL (n/a)     19 October 2007

Thank you very much for your expert comments & attachments.

Sir, please clarify more in this particular case;   

WHO IS PRINCIPAL EMPLOYER ?   -----------  STATE GOVT./PRIVATE DEVELOPER

                                                                                       OR

                                                                      OUR MFG. UNIT WHO RECEIVED ORDERS

 

IS ESI APPLICABLE AT REMOTE SITE WHERE DISPENSARY IS NOT AVAILABLE FOR TREATMENT ?     (SITES ARE FAR FROM CITIES ABOUT 200-300 KMS.)

 

WHAT IS THE LEGAL POSITION REGARDING P.F.  ?

 

WHO WILL ISSUE FORM-V UNDER CL(R&A) ACT ?       ---- STATE GOVT./PVT. DEVELOPER  OR OUR MFG. UNIT WHO RECEIVED ORDERS.

 

Regards

L.C.Pal

 



 

kirankumaradv (n/a)     19 October 2007

The main features of the CLRA Act can be summarised thus:-

The Act applies to every establishment in which 20 or more workmen are employed or were employed on any day on the preceding 12 months as contract labour and to every contractor who employs or who employed on any day of the preceding 12 months 20 or more workmen. It does not apply to establishments where the work performed is of intermittent or casual nature. The Act also applies to establishments of the Government and local authorities as well.

The Central Government and the State Governments are required to set up Central Advisory Board and State Advisory Boards, which are authorised to constitute Committees as deemed proper. The functions of the Boards are advisory, on matters arising out of the administration of the Act as are referred to them. The Boards carry out the functions assigned to them under the Act.

The establishments covered under the Act are required to be registered as the Principal Employer. Likewise, every contractor to whom the Act applies is required to obtain a licence and not to undertake or execute any work through contract labour except under and in accordance with the licence issued.

The Act has provided for establishment of canteens. For the welfare and health of contract labour, provision is made for restrooms, first aid, wholesome drinking water, latrines and urinals. In case of failure on the part of the contractor to provide such facilities, the Principal Employer is made liable to provide the amenities.

The contractor is required to pay wages and a duty is cast on him to ensure disbursement of wages in the presence of the authorised representative of the Principal Employer. In case of failure on the part of the contractor to pay wages either in part or in full, the Principal Employer is liable to pay the same. In case the contract labour perform same or similar kind of work as regular workmen, they will be entitled to the same wages and service conditions as regular workmen as per the Contract Labour (Regulation and Abolition) Central Rules, 1971.

The Act makes provision for the appointment of Inspecting staff, for maintenance of registers and records, for penalties for the contravention of the provisions of the Act and Rules made thereunder and for making Rules for carrying out the purpose of the Act. In the central sphere, officers of the CIRM have been appointed as Inspectors.

Apart from the regulatory measures provided under the Act for the benefit of the contract labour, the ΓÇÿappropriate governmentΓÇÖ under section 10(1) of the Act is authorised, after consultation with the Central Board or State Board, as the case may be, to prohibit, by notification in the official gazette, employment of contract labour in any establishment in any process, operation or other work.

Sub-section (2) of Section 10 lays down sufficient guidelines for deciding upon the abolition of contract labour in any process, operation or other work in any establishment and the ΓÇÿappropriate governmentΓÇÖ while taking action under this Section will have to take an overall picture of the industry carrying on similar activities. The guidelines furnished under sub-section (2) oblige the ΓÇÿappropriate governmentΓÇÖ to consider, as relevant data, the material to which it must have regard. The Central Government on the recommendations of the Board has abolished contract labour system in a number of jobs in different industries and so far 75 notifications have been issued.

Shambasiv (n/a)     19 October 2007

1) The Government if the Principal Employer in your case.

2) You have to get ESI Registration. Apart from providing hospitals there are other benefits covered under ESI. Click the link belwo to have a look at that.

 [url=https://www.firstappeal.com/view_topic.php?id=216&forum_id=27]https://www.firstappeal.com/view_topic.php?id=216&forum_id=27[/url]

3) You have to get registered under the EPF Act too.

4) You should obtain Form V from the Government.  


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