Do’s & Don’ts Of Contract Labour Engagement

The Contractor should possess a valid license to take up the works in an establishment or organisation. 

2.    Every establishment which engages contract labour should obtain a Certificate of Registration under the Contract labour (R & A ) Act, 1970. 

3.    The work of the contractor should never be supervised or administered by the officers of the principal employer.  In other words, the element of supervision, control and direction should only be from the contractor and not from the principal employer. 

4.    The establishment in the first instance, must ensure that they have got a registration certificate from the competent authority as provided u/s 7 of the Contract Labour ( R & A)  Act, 1970. Before proceeding to engage the contract labour. 

5.    The establishment must ensure that they issue certificate in Form – V to the contractor for obtaining license as provided u/s 12 of the Act. 

6.    It must be ensured that the contractor who is employing more than 20 persons has a valid license issued in his name by the competent authority as provided under the Act. 

7.    The payment of wages to the employees employed by the contractor is disbursed to his employees by the contractor himself or his nominee and principal employer has to depute his representative to be present and sign the payment register in token of having disbursed the salary in his presence by the contractor. 

8.     There should not be any supervision and control by the principal employer in respect of employees employed by the contractor to fulfill the obligation of the contract. 

9.     The work for which contract labour is engaged is not of perennial nature. 

10.  Discipline of the employees of the contractor in the discharge of duties must be regulated by the contractor and not by the principal employer.

11.  Contract should not specify the number of persons required but must quanitfy the work itself.

12.  Leave to the employees of contractor must be sanctioned by the contractor and not by the principal employer.

13.  No advance should be paid by the principal employer to the contractor’s employees directly. Only contractor must regulate the same. 

14.  Maintenance of all type of record in respect of the employees employed by the contractor should be his own responsibility and principal employer should not intervene in such matters. 

15.  If the establishment is covered by the Employees’ Provident Fund & Misc. Provisions Act and the Employees’ State Insurance Act then the preference should be given to those contractors who have their own code numbers under these Acts. 

16.  To ensure to submit annual return to the prescribed authority in the prescribed form under the Act.

17.   The contractor should submit the printed bills and sign under the Rubber Stamp.

18.  The contractor should maintain records through his staff and not by the staff of principal employer.

19.  The contractor’s labour should do only the specific work agreed by the contractor.

20.  The contractor should issue the photo identity card to his workers under his name, trading style and signature.