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Contract Labour Compliance

Employers of various industries - from micro to large - do depend on Contract Labour workforce in order to sustain and as Principal Employers, they need to take care when they engage a contractor. Besides being compliant, they have to ensure that the contractors engaged by them to stay compliant.

Some of the important activities:

  • Registration & license under Contract Labour Regulation and Abolition Act
  • Payment of minimum wages to contract labourers
  • Timely payment of minimum wage, bonus, leave wages etc
  • Maintaining records, registers, forms & notices under various legislations
  • Remittances of ESI, EPF & LWF contributions for contract workers
  • Compliance under BOCW Act and ISMA Act
  • Accident related compliance for contract workers
  • Retirement or terminal benefit for contract workers
  • Maternity benefits for contract labourers

Key Highlights:

  • Obtain Registration of Principal Employer (RC)
  • Obtain license for each applicable contractor if applicable
  • Maintain contractor-wise registers, records and returns
  • Ensure minimum wage payment through effective processes
  • EPF and ESI contribution through principal employer's sub code / contractor's code
  • Coordination of benefits under EPF, ESI, LWF & WC for CL
  • Accident coordination support


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