In the ever-changing landscape of employment and labour laws, the use of outsourcing and contractual labour has become prevalent in industries. However, principal employers must recognize that outsourcing work does not equate to outsourcing responsibility, particularly regarding legal compliance. The principal employer remains vicariously liable for various obligations of the contractor under Indian labour laws. This article provides a detailed overview of how principal employers can ensure legal compliance by contractors and protect themselves from potential legal and financial risks.
The following legislations are particularly relevant:
1. Contract Labour (Regulation and Abolition) Act, 1970
2. Employees’ Provident Fund and Miscellaneous Provisions Act, 1952
3. Employees’ State Insurance Act, 1948
4. Minimum Wages Act, 1948
5. Payment of Wages Act, 1936
6. Payment of Bonus Act, 1965
7. Factories Act, 1948/Shops and Establishments Acts
8. Occupational Safety, Health and Working Conditions Code, 2020 (when...
