The Contract Labour(Regulation and Abolition) Act is basically a frame work for regulating employment through contract labour and in some cases abolition of such kind of engagements and it provides for licensing of establishments which employ contract labour (certainly subject to a condition of 20 or more such employees) and getting a firm registered for taking up such kind of works. As such, as far as a contractor is concerned, he is running a service of man power supply and therefore, he is expected to get registration under the Shops and Commercial Establishments Act. Once he comes under the said Act, all the employees under him, whether they work in Factory X or Y, or Shop A or B, will be eligible for all benefits conferred under the same Act, ie, Shops and Establishments Act.
It is only in the context of his legal relationship with the company where his workers are working on contract that he is a "contractor", whereas, his relationship with his workmen will be that of employer and employee. Being so, he is suppose to give leave and other benefits under the Shops Act, Provident Fund as per Employees Provident Fund Act, ESI as per ESI Act and so on. Like leave, nothing is stated in the Contract Labour Act which makes a contractor or principal employer liable to give EPF and ESI. But there is no objection that employees engaged through contractor are to be given PF and ESI. The case of leave also shall be taken in the same manner only.
Regards,
Madhu.T.K
It is only in the context of his legal relationship with the company where his workers are working on contract that he is a "contractor", whereas, his relationship with his workmen will be that of employer and employee. Being so, he is suppose to give leave and other benefits under the Shops Act, Provident Fund as per Employees Provident Fund Act, ESI as per ESI Act and so on. Like leave, nothing is stated in the Contract Labour Act which makes a contractor or principal employer liable to give EPF and ESI. But there is no objection that employees engaged through contractor are to be given PF and ESI. The case of leave also shall be taken in the same manner only.
Regards,
Madhu.T.K