Pmpry reimbursement from contractor?

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Sitaram Sishtla (Querist)
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02 March 2019 When contract labour are engaged in a company, labour contractor is employer and company is Principal employer. PMPRY is initiated to encourage new employment generation. Govt. is reimbursing employer's contribution to encourage employers for employment generation.
However, in recent times it is observed some companies are demanding to repay employer's contribution paid by them to contractor towards contract labour.
My query is, is principal employer entitled for the same?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 March 2019 As PMPRY is initiated to encourage new employment generation, new employment is generated by principal employer so the principal employer is entitled for it.

Sitaram Sishtla

Sitaram Sishtla (Querist)
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27 March 2019 Still my query is though contractor is providing manpower for principal employer, actually employment generation such sourcing, deployment etc., will be done by contractor only. Statutorily too, contractor is first employer of contract worker, in case of his failure to pay etc., only Principal employer comes in. My observation is that as an employer, contractor is entitled for PMPRY benefit.
I am a HR person, so query is still lingering in my mind. Please clarify.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 March 2019 Employer's contribution is part of contract price paid by principal employer so it has to be paid back to him.

Sitaram Sishtla

Sitaram Sishtla (Querist)
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28 March 2019 Thank you for the clarification.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 March 2019 Welcome...............

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