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Contract Labour Prnicipal Employer Liability

Godse Sopan Karbhari - Member Since: Oct 2008
Subject - Contract Labour Prnicipal Employer Liability
Hi,
We are a manufacturig unit registered under the factories act. We have leased a part of our company (One shed) to some other industry. It is a common gate entry for all vehicles and persons, contract based security monitors all the relevant records for both the companies. There are seperate contractors working and we have obtained contract labour registration for our contractors. We do not know the status of other industry wether they have obtained Factory Licence and contract labour registration.

My question is - What is my legal liability under the Factories act and Contract Labour Act.
Regards,
Sopan
irudayamarockiam Full Member - Member Since: Feb 2009
Subject - Re: Contract Labour Prnicipal Employer Liability
DEar Mr.Sopan,
1. In case you have already registered under Factories Act as well as under Sec. 7 (1) Contract Labour ( abolition) Act as well as caused to obtain separate “Licences” under Sec. 12 (1) by virtue of identifiable and separate manufacturing process which is not connected with the lessee of your premises, your legal obligation ends there.
2. Though prima facie, common entrance will impose burden on you to comply with the statutory requirements of not only Factories Act, Contract Labour ( abolition) Act but also other Acts such as ESI, EPF. Payment of Wages Act etc, being the lessor of the other portion used for some other “industry”, you must satisfy yourself and other Enforcement Officers under various Acts that the other ‘industry’ has got nothing to do with your manufacturing process either directly or indirectly. In which case, what is stated under para 1 above will hold good for you.
A.Irudayam, M.A., M.B.A., LL.B.
Advocate and HR Consultant
+919940686632


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