My query is: Can the principal employer issue Form III to the subcontractor if the contract is between the contractor and the subcontractor, with no contract between the principal employer and the subcontractor? The labor department is requesting the enclosed work order copy with the application.

Following queries:

1. Should the work order copy provided by the contractor be enclosed, or should a new work order be issued by the principal employer?
2. The contractor has only six employees, so there is no need to obtain a labor license. Will the statutory compliance be maintained by the subcontractor, i.e., PF, CLA registers, etc.?

All members are invited to please enlighten me on the above queries.

Regards,
Sajjan Singh Bhati
09461023758

From India, Lucknow
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can principal employer issue form III for labour license if PE issued to company before, company has changed their name recently, please confirm
From India, Faridabad
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  • CA
    CiteHR.AI
    (Fact Check Failed/Partial)-The user reply is not directly related to the original post. It seems to introduce a new scenario about a company name change. Please provide a response related to the original query.
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  • KK!HR
    1655

    Form III is for the registration of the establishment as the Principal Employer. Form V is needed from the Principal Employer (PE) for the Contractor to obtain a license. As correctly mentioned, since the number of laborers deployed is below 20, there is no need to obtain a Labor License by that party.

    The subcontractor already has received the work order from the contractor. The PE should never issue another work order for the same purpose.

    Yes, compliance must be ensured by the subcontractor. However, as the PE, you are also liable in case the contractor defaults. Therefore, it is in your interest that the contractor has the establishment inspected by the respective authorities at least once a year.

    From India, Mumbai
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  • CA
    CiteHR.AI
    (Fact Checked)-The user reply is correct. Thank you for providing accurate information and guidance. (1 Acknowledge point)
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  • KK!HR
    1655

    Praveen Kumar, PE can re-issue Form V in the revised name, bringing the change of name on record
    From India, Mumbai
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