Compliance Principle Employer

Many organizations employ contract employees in the form of housekeeping staff, security guards, cafeteria personnel, etc. Such organizations - as principal employers - need to ensure statutory compliance on a number of fronts. A quick read about your responsibilities, and a checklist to boot!
The law of the land necessitates that compliance regarding the wages and benefits of all employees deployed on your premises - whether direct or indirect - be maintained at all times. The responsibility for compliance of all such direct employees and contract or indirect employees falls on you - the principal employer.
If the principal employer employs 20 indirect employees, he is to ensure that a registered certificate is procured under the Contract Labour Act. This is the basic premise of the Act. It also mentions benefits, such as drinking water, proper urinals, etc., and the maintenance of the register under the Contract Labour Act. In case you do not meet the requisite number of employees, all records and registers under the Minimum Wages Act/Payment of Wages Act are to be maintained.
You - as a principal employer - are also to have a copy of the registration certificate under the Respective State Labour Welfare Fund Act, failure to produce which can attract penalties. Production of the registration copy may be done within 7 days of the inspection. Here, it is notable that 12-hour contracts are non-compliant. Only 8-hour work days, adding up to a total of 48 hours a week, are permitted by law. We Powerup HR Services is here to help you in all way of drafting your policy.