Coverage of the Contract Labour
(Regulation and Abolition) Act, 1970
This Act applies:
(a)to every establishment in which twenty or more workmen are employed or were employed on any day of the preceding 12 months as contract labour;
(b)to every contractor who employs or who employed on any day of the preceding twelve months twenty or more workmen.
In this Act:
“contractor” in relation to an establishment, means a person who undertakes to produce a given result for the establishment, other than mere supply of goods or articles of manufacture to such establishment, through contract labour or who supplies contract labour for any work of the establishment and includes a sub-contractor;
“Establishment” means:-
(i)any office or department of the Government or a local authority, or
(ii)any place where any industry, trade, business, manufacture or occupation is carried on;
“Principal Employer” means:-
(i)In relation to any office or department of the Government or a local authority, the head of that office or department or such other officer as the Government or the local authority, as the case may be, may specify in this behalf.
(ii)In a factory, the owner or occupier of the factory and where a person has been named as he manager of the factory under Factories Act,1948 (63 of 1948), the person so named,
(iii)In a mine, the owner or agent of the mine and where a person has been named as the manager of the mine, the person so named,
(iv)In any other establishment, any person responsible for the supervision and control of the establishment.
Registration of Principal Employer
Every principal employer of an establishment to which this Act applies is bound to get the establishment registered. The principal employer for obtaining Registration Certificate shall submit application on Form No-I to the registering officer of the area in which the establishment sought to be registered is located and shall deposit fee as per Fee Schedule (Annexure-I).
Licensing of Contractor
No contractor to whom this Act applies shall undertakeor execute any work through contract labour except under & in accordance with a license issued in that behalf by the licensing officer. A contractor for obtaining license shall obtain a certificate on prescribed Form No-Vfrom the principal employer and submit the certificate alongwith the Application on Form No-IV to the licensing officer of the area in which the establishment in relation to which he is the contractor is located. He shall deposit fee as per Fee Schedule (Annexure-II) and security @ Rs. 30/- for each of the workman to be employed as contract labour with the Govt. treasury through treasury challan signed by concerned Licensing Officer. The security is refundable on completion of the contract work. The contractor license remains valid for a period of twelve months and can be renewed on making an application in Form No-VII and on payment of fee which is the same as in for registration.
Registering Officers/Licensing Officers
The Government of Himachal Pradesh has appointed the Labour Officers to be registering Officers for registration of establishments employing contract labour and as licensing officers for licensing of contractors for establishments located within their jurisdiction as under:-
SR. NO. / NAME AND ADDRESS OF THE REGISTERING OFFICER/LICENSING OFFICER / JURISDICTION1. / Labour Officer, Kangra at Dharamshala,H.P. / District Chamba
District Hamirpur
District Kangra
2. / Labour Officer Mandi,H.P. / District Mandi
District Bilaspur
District Kullu except Sub-Division Anni
District Lahaul Spiti except Sub-Division Spiti
3. / Labour Officer, Shimla, H.P. / District Shimla
Arki Sub-Division of District Solan
4. / Labour Officer, Solan,H.P. / District Sirmour,
District Una,
District Solan except Sub-Division. Arki
5. / Labour Officer, Rampur,Distt. Shimla.,H.P. / District Kinnaur,
Sub-Division Spiti of District Lahaul & Spiti ,
Sub-Division Anni of District Kullu
Sub-Division Rampurof District Shimla.
Registers and Records and Returns
Every principal employer is bound to maintain in respect of each registered establishment as register of contractors in Form No-XII.
Every contractor is bound to maintain in respect of each registered establishment where he employs contract labour a register of workmen employed in Form No-XIII and is bound to issue an Employment Cardin Form No-XIV to each worker within three days of the employment of the worker. Further in respect of each work on which he engages contract labour every contractor is bound to maintain a Muster Roll, Register(s) of Wages, Deductions, Fines, Advances, Overtime and is bound to issue wage slips to the workmen atleast a day prior to the disbursement of wages.
Every contractor is bound to send half yearly return in Form No-XXIV so as to reach the Licensing Officer concerned not later than 30 days from the close of the half year. Every principal employer of a registered establishment is bound to send annually return in Form No-XXV so as to reach the Registering Officer concerned not later than the 15th February following the end of the year to which it relates.
Fee Schedule
Fees for Registration of the Principal Employer
Annexure-I
(a) / Is 20 / Rs.20
(b) / Exceeds 20 but does not exceed 50 / Rs.50
(c) / Exceeds 50 but does not exceed 100 / Rs.100
(d) / Exceeds 100 but does not exceed 200 / Rs.200
(e) / Exceeds 200 but does not exceed 400 / Rs.400
(f) / Exceeds 400 / Rs.500
FORM V
FORM OF CERTIFICATE BY PRINCIPAL EMPLOYER
[under Contract Labour (regulation & Abolition) Act, 1970]
[Rule 21(2)]
Certified that I have engaged the applicant______
______as a contractor in my
establishment. I undertake to be bound by all the provisions of the Contract Labour
(Regulation and Abolition) Act, 1970, and the Contract Labour (Regulation
and Abolition) Rules, 1973, in sofar as the provisions are applicable to me in respect
of the employment of contract labour by the applicant in my establishment.
Place :
Date:
Signature & Seal of
the Principal Employer
Subject - Definition of Principal Employer
This is as per CLRA "Principal Employer" means- (i) in relation to any office or department of the Government or a local authority, the head of that office or department or such other officer as the Government or the local authority, as the case may be, may specify in this behalf, (ii) in a factory, the owner or occupier of the factory and where a person has been named as the manager of the factory under the Factories Act, 1948 (63 of 194, the person so named. (iii) in a mine, the owner or agent of the mine and where a person has been named as the manager of the mine, the person so named, (iv) in any other establishment, any person responsible for the supervision and control of the establishment.
Subject - Re: Regarding Principal Employer
If you engage some workers on contract basis through a contractor, you are the principal employer. If company Z is employing some workers through X, the contractor, between them Z is the principal employer and X is the contractor and whereas this X has given sub contract to Y then between X and Y, X becomes principal employer. Therefore it is relative and not absolute. Simply, principal employer is the employer for whom work is done by others.
Job Highrarchy
Subject - Re: contract labour are eligible for bonus under payment of bonus act
Dear Swamy
Whoever it is the Contractor also gots the profit, since he is taking profit, he too eligible to pay the Bonus to it's employees under Normal Practice. Here, the Principal Employer has to ensure whether the Bonus is paid to the Contract Employees or not. In the Wage Pattern itself, the Principal Employer has to make the break up which is inclusive of Bonus. The Bonus Act may talks about the Infancy Period ie, any organisation's age is below 5 years that has been exempted to pay Bonus, but in the same act it is clearly mentioned that, if the Organisation starts to getting Profit within 2 years, then it has to pay the Bonus to its employees from the Origin with Interest, that is why? Most of the Organisations are paying bonus from the starting Budget Year itself.
Since the Contractor is the Contractor to the Principal Employer, the Parent of the Contractor shall be Contract Labour Act (Regulation & Abolition). So you have to pay the Bonus to your Contract Employees, as a Principal Employer, you should ensure with the Contractor, whether the Bonus has been disbursed or not.
Thanks & Regards
Subject - Re: Statutory Liabilities of prinicipal employer
The term Principal employer is usually used in relation to an employer who appoints employees through a contractor. Basically there is no difference between the terms- Employer and Principal employer. When used in the context of contract employees, it becomes principal employer. As all employees (subject to the wages ceiling fixed under the different legislations) whether directly employed or through a contractor are working for the employer, it is his respnsibility to implement the labour enactments in his establishment. Accordingly, the employer has to remit the PF dues of his employees in time and recover the employees' share from the salary of the employees. Similar is the case of ESI. At the same time it becomes the responsibility of the Principal employer (for whom the contracted employees work) to remit the EPF, ESI etc of the employees employed through contractor and certainly he can deduct the same- both share- from the payment to be made to the contractor. That means though contracted employees are employees of the contractor but are working for another and that another person, the principal employer, is respnsible for the initial payment of dues and are recoverable from the contractor as if he had made the payment of ESI or PF on behalf of the contractor.
The word "occupier" is also used in certain Acts such as Factories Act, Payment of Bonus Act etc which has the scope of Principal employer.
The Principal employer is responsible for implementation of labour welfare and social security measures provided under different labour and factory enactments.
Regards,
Click on the above link foor details. I have posted the question in this site for expart opinion for PSUs like BSNL. below are the details. For detail study on principal employer click on
You may circulate this to Branch Secretaries if feel relevant.
Amit Da
Subject - who is the principal employer in PSUs like BSNL
For example in BSNL the cadre hierarchy is like this CGM ->GM->DGM->DE->SDE->JTOfor executives. Now for execution of various jobs labours are emgaged under comtractors in various offices. Now can CGM or GM be the principal employer as over all incharge? The job awarding and execution done in DE/SDE/JTOlevel and different from one DEtoother DE in nature as well as quantity. DGM/DE/SDE/JTOdo not have any financial power. Financial power is with GM/CGM and all policy regarding contract labour is controlled by CGM centrally. Inyouropiniun who should be ideal principal employer in this case. Early reply will be higly appreciated
Reply
pandit satishContributing Member - Member Since: Apr 2012
India Delhi
Subject - Re: who is the principal employer in PSUs like BSNL
Dear sdebhl,
Principle employer is the company not the any employee of the company they are just driver of the company principle employer the company itself.
Reply
sdebhl- Member Since: Sep 2012
India Kolkata
Subject - who is the principal employer in PSUs like BSNL
For example in BSNL the cadre hierarchy is like this CGM ->GM->DGM->DE->SDE->JTO for executives. Now for execution of various jobs labours are emgaged under comtractors in various offices. Now can CGM or GM be the principal employer as over all incharge? The job awarding and execution done in DE/SDE/JTO level and different from one DE to other DE in nature as well as quantity. DGM/DE/SDE/JTO do not have any financial power. Financial power is with GM/CGM and all policy regarding contract labour is controlled by CGM centrally. In your opiniun who should be ideal principal employer in this case. Early reply will be higly appreciated
Reply
pandit satishContributing Member - Member Since: Apr 2012
India Delhi
Subject - Re: who is the principal employer in PSUs like BSNL
Dear sdebhl,
Principle employer is the company not the any employee of the company they are just driver of the company principle employer the company itself.
Reply
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Sharmila DasContributing Member - Member Since: Dec 2008
India Visakhapatnam
Subject - Re: who is the principal employer in PSUs like BSNL
Dear sdebhl,
How can a GM or a CGM be a Principal employer?
Principal employer is a term given to the organization that provides third party contracts. In which case, if the contract labour is hired through a contractor then the hiring partaker is called a PE. Policies and contracts can be taken care by the GM/CGM, in your case "BSNL" is the PE.
Reply
korgaonkar k aContributing Member - Member Since: Mar 2009
India Mumbai
Subject - Re: who is the principal employer in PSUs like BSNL
Dear sdebhl,
According to Section 2(g) (i), Principal Employer in relation to any office or department of the Government or a local authority means the head of that office or department or such other officer as the Government or the local authority, as the case may be, may specify in this behalf.
BSNL is a PSU wherein the Principal Employer is the head of the establishment / location who has obtained RC in his name.
RC is issued to Govt. offices /departments including PSU in the name of person holding the position of CEO / Executive / Executive Engineer / HOD etc.
Thanks and regards.
Keshav Korgaonkar
Shantadurgaent.com,Insurance Advisors,Corporate Advisors,Legal Advise,Wage and salary,Shantadurgaent.com,Labour Compliance Audit,SSI registration,NOC from
Reply
Sharmila DasContributing Member - Member Since: Dec 2008
India Visakhapatnam
Subject - Re: who is the principal employer in PSUs like BSNL
Dear sdebhl,
How can a GM or a CGM be a Principal employer?
Principal employer is a term giventothe organization that provides third party contracts. In which case, if the contract labour is hired through a contractor then the hiring partaker is called a PE. Policies and contracts can be taken care by the GM/CGM, inyourcase "BSNL" is the PE.
Reply
korgaonkar k aContributing Member - Member Since: Mar 2009
India Mumbai
Subject - Re: who is the principal employer in PSUs like BSNL
Dear sdebhl,
AccordingtoSection 2(g) (i), Principal Employer in relationtoany office or department of the Government or a local authority means the head of that office or department or such other officer as the Government or the local authority, as the case may be, may specify in this behalf.
BSNL is a PSU wherein the Principal Employer is the head of the establishment / location who has obtained RC in his name.
RC is issuedtoGovt. offices /departments including PSU in the name of person holding the position of CEO / Executive / Executive Engineer / HOD etc.
Thanks and regards.
Keshav Korgaonkar
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