Do's and Dont's for principal employer

There are several dos and don's for principal employer:  Some of them are:

1.  There should be a written agreement between the P.E. (Principal Employer) and contractor.

2. There should be stipulation that the contractor would follow the laws of land and maintain all the requisite registers pertainning the the workers. 

3. The principal employer has to obtain licence to engage contractor.  And also he shoud engage only those contractors, who have obtained licence to engage contract labour.

4. Wages have to be disbursed every month in the presence of the agent of the P.E.  He should also sign on the register.  If minimum wages Act is applicable (in most of cases, it is) to verify whether minium wages are being paid or not?  Similarly overtime wages must be double of normal rate of wages.

5. To verify that monthly PF and ESI contributions are being remitted by the contractor.  Yearly bonus is being paid to the employees by the contractor orf not?

6.  Whether the contractor is providing drinking water, toilet facility and canteen facility, if women workers are there, then creche facility etc.

prabhakar

karlprabhakar@gmail.com