1). First of all it must be ensured that there is no notification prohibition contract labour system by the appropriate government for the employment of contract in any process, operation or any work of the establishment. Like in Madhyapradesh Employment of contract, labour in automobile industries is prohibited.
2). Before identifying a contractor, it is desirable to advertise in classified column (which will be economical) in the local newspaper inviting offers from the contractors and a copy of newspaper along with the invoice be preserved.
3). The principal employer is required to obtain registration under section 7 of the Contract Labour (R&A) Act in Form No.1 (in triplicate) to the Registering Officer of the area in which the establishment sought to be registered is located. The said Form shall be accompanied by demand draft showing the payment of fees for payment of registration.
4). Only those contractors be identified who have their own independent code number under the Employees’ Provident Funds & MP Act and the ESI Act. In case a contractor does not have independent codes for ESI and Employees’ Provident Fund, an undertaking be taken that his employees be covered by the principal employer and he will reimburse the amount of contributions.
5). Whenever a contractor will be having 20 or more persons working for him, it is obligatory that licence be taken under the Act. Accordingly the principal employer will issue Form-V (Form of certificate by the principal employer) to the contractor for obtaining licence. The principal employer will ensure that the contractor is also renewing his licence every year.
6). The principal employer should ensure that if the contract labours are employed for same or similar kind of work as the regular employee of the Principal Employer does, then the wage rates and other conditions of service should be the same for the contract labour as applicable to the regular employee.
7). The Principal Employer must ensure that it issues certificate in Form V to the contractor for obtaining licence as provided as provided under section 12 of the Act.
8). The Principal Employer should not involve himself in selection process of contract labour otherwise it may lead to sham and camouflage.
9). Principal Employer should not supervise the activity of contract labour because it may amount to sham and camouflage and, in turn, the contact labour would be declared employees of the Principal Employer. In such a scenario, the Industrial Court has the power to direct Principal Employer to absorb the contract labour.
10). That the Principal Employer gets the registration certificate and the contractor obtains the licence from the competent authority as provided under section 7 of the Act before proceedings to engage the contract labour.
11).The payment of wages to the employees, employed by the contractor, is disbursed to his employees by the contractor himself or this 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.
12). Amongst other employees, as provided by the contractor, there must be at least one supervisor through whom the officials of the Principal Employer could communicate, preference be given to a contractor who has such type of work at other locations also.
13). Discipline of the employees of the contractor in the discharge of duties must be regulated by the contractor and not by the Principle Employer.
14). Leave to the employees of the contractor must be sanctioned by the contractor and not by the Principal Employer.
15). No advance should be paid by the Principle Employer to the contractor’s employees directly. Only contractor must regulate the same.
16). Maintenance of all types 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.
17). If the Principal Employer is covered by the Employee’s Provident Funds and Miscellaneous Provisions Act and the Employee’s State Insurance Act, then preference should be given to those contractors who have their own code numbers under these Acts.
18). The Principal Employer must ensure compliance of the obligation pertaining to the various provisions regarding amenities and benefits as prescribed under the Act.
19). The Principal Employer must ensure the submission of annual return to the prescribed authority in the prescribed form under the Act.
20). Experience certificates should not be issued by the Principal Employer to the employees of the contractor.
21). No performance appraisal of any sort shall be made by Principal Employer to the employees of the contractor.
22). Principal Employer should avoid any settlement process, either bi-partite or tri-partite.
23). Contractor should prepare and hand over the pass book to the inter-state migrant employees under the Inter –State migrant employees under the Inter State Workers Migrant Act, 1976.
24). Avoid engagement of on-roll and off-roll employees in same or similar job.
25). Licence should be displayed at the work-place.
26). Principle Employer must send annual return by 15th February every year.
27). Principal Employer should see that the contract labour should not work in Principal Employer’s establishment after termination of contract.
28). The colour of the uniforms of the contract labour should be different than that of the employees of the Principal Employer.
29). Canteen facilities, if being provided by the Principal Employer to its employees, the contract labour should be charged at little higher rate if it is decided they can also avail such facility.
30). The Principal Employer should get an undertaking in the following of each month from the contractor that not only the wages have been paid to its employees but also they have been paid to its employees but also they have been enrolled under ESI and Employees Provident Funds & MP Act and the contractor has paid their contributions (with the proof of deposit). Should there by any reason, the Principal Employer is held liable to discharge any such monitory obligation, the contractor will be responsible and that amount can be deducted from his dues as payable by the Principal Employer. A pro-forma to this effect is given as Appendix A.
APPENDIX – A
PRO-FORMA SUGGESTED FOR UNDERTAKING BY THE CONTRACTOR
I …………………………s/o………..Proprietor/Partner/Director of ……………….,do hereby declare and undertake as under:
1). That in the capacity of independent Labour Contractor for M/s…………I have complied with the provisions of all laws as applicable. I have paid the wages for the month of ………….which are not less than the minimum rates as applicable, to all my employees and not other dues are payable to any employee.
2). That I have covered all the eligible employees under Employees’ Provident Funds and Miscellaneous Provisions Act and the Employees State Insurance Act and deposited the contributions for the following months and as such no amount towards contributions whatsoever is payable.
3). I further declare and undertake that in case any liability pertaining to my employees is to be discharged by the M/s………………due to my lapse. I undertake to reimburse the same M/s……………….is also hereby authorized to deduct the same from my dues as payable.
LABOUR CONTRACTOR
AUTHORIZED Signatory.
Contractor Performance Review
General checklist that can be used to review the contractor’s OHS system and contract requirements
Last Update: XX November XXXX
Owner: Manager HR
Project or Job Number:
Date of Report:
Project Description:
Worksite location:
Target Completion Date of Project:
Contractor:
This document can be used to confirm that the health and safety requirements for each contract have been defined and that the outcomes correspond to the agreement between the parties. All items are to be completed by the Contractor and verified by the Principal’s Representative. Items are to be marked N/A if Not Applicable. The frequency of these reports will depend on the duration of the project and the terms of the contract.
CONTRACT
REQUIREMENTS Contractor’s
Comments Principal’s
Verification
1. A site safety plan has been developed from hazard identification and risk assessment data, and is revised as necessary.
2. Supervision ensures that the contractor’s work methods on site conform to the site safety plan requirements.
3. All relevant specifications, drawings and work plans are available on site.
4. The Contractor has obtained all relevant permits, licences and approvals and copies are available on site.
5. The Contractor has up to date copies of all correspondence, instructions and directives relevant to health and safety.
6. The Contractor conducts regular site safety inspections and records of the inspections are available.
7. The Contractor has copies of Material Safety Data Sheets for all substances used on site.
8. Copies of relevant legislation, standards and codes of practice are available on site.
9. The Contractor has nominated a person on site with overall responsibility for health & safety matters.
10. Work site boundaries have been defined and access restrictions are enforced to prevent unauthorised entry.
11. The Contractor maintains a site visitors book which is kept up to date.
12. Safe means of access and egress to the site are maintained.
13. The Contractor has implemented a site safety induction program and records are maintained.
14. Safety / Warning signs are in place and maintained in good order.
15. Permit to work procedures are operating for confined space entry, hot work etc.
16. Isolation / Tagging systems are used for unsafe or defective equipment.
17. Site emergency response plans have been developed and are regularly practiced.
18. An up to date Accident / Incident report book is maintained and WorkCover is notified of incidents where required by legislation.
19. All Accident / Incident investigations are up to date and completed satisfactorily.
20. First aid facilities and trained personnel are available on site.
21. A site safety committee has been formed and meets regularly.
22. Minutes of the site safety committee meetings are maintained and published.
23. Health and safety issues have been resolved in a timely manner.
24. Any outstanding prohibition or improvement notices from WorkCover inspections are being addressed.
25. The Contractor monitors the safety performance of all subcontractors on site and records are available.
26. Hazard identifications and risk assessments are available for the plant and equipment used on site.
27. Inspection, maintenance and service records are available for the plant and equipment used on site.
28. Fire protection equipment is available on site and maintained in good working order.
29. Personal protective equipment is available and maintained in good working order.
30. Flammable materials, gas cylinders and other hazardous substances are stored safely on site.
31. Facilities, amenities and the standard of general housekeeping on site are satisfactory.
Contractor’s Representative:
Principal’s Representative:
Signature:
Signature:
