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INSTRUCTIONS TO CONTRACTOR FOR STATUTORY COMPLIANCES
FOR JOB / WORK / LABOUR CONTRACT (Ref:- 10/99/PER(Fy)CLC)
1.0 Statutory registrations and clearances – Pre-Requisites
Contractor shall commence the work only after obtaining the following:
1.1) Labour Licence.
1.2) Provident fund code no.
1.3) ESI code no
1.4) Registration no.
1.5) Notice of commencement in Form 6-A & Maintain Register of workers
2.0 Contractor shall ensure following while executing contract.
2.1) Employment card as per rule no 76 of contract labour(Regulation &
Abolition) MP rules,1973.
2.2) Appointment letter to his employees.
2.3) Annual leave with wages including EL, CL, National Holiday & Festival
2.4) Leave record register.
2.5) Shall engage only adult workers who have attained the age of 18.
2.6) Work to be done on second/third shift, overtime, Sundays or on other
declared holidays with written permission.
2.7) Obtain insurance cover for his employees/equipments, tools etc & third
party insurance coverage at his own cost.
2.8) Remit Provident fund contributions in prescribed 3A & 6A
2.9) ESI contributions in Form 6.
2.10) Submit challans of PF & ESI contributions every month.
2.11) Provide Personal protective equipments for his employees.
2.12) Distribute wage slip each month to his employees
2.13) Ensure payment as per minimum wages act, 1948 in presence of HR and
concerned dept representative.
2.14) Preferably Uniform to labours different from BHEL employees.
2.15) Submit employee and employer contribution as per Shram Kalyan Nidhi
3.0 Appointment and termination of workers by contractor
2.1 Contractor shall make appointment of his Employees only for a specific period
and same shall be recorded in employment card. Appointment letter should
clearly state that the services shall stand terminated on expiry of contract period
or completion of the work
2.2 Contractor shall have the sole discretion to decide on employing, rewarding or
terminating the services etc. of his employees. However, his employees must
possess such qualifications, experience, age requirement and medical and
physical standards as required for the work awarded to the contractor.
2.3 In case of termination of services of any employee of contractor, the contractor
will ensure that wage payment and other dues to his employee is made within
48 hours of termination of services of such employee. While termination of the
services of any of his employee, the contractor will discharge all formalities as
per the Industrial Dispute Act such as payment of retrenchment compensation
and gratuity as due and admissible.
3.0 Leave with wages
3.1 Contractor shall allow Annual leave with wages as under
3.2 One-day leave for every 20 days of work performed during preceding calendar
year after completing 240 days of service in preceding calendar year.
3.3 Un-availed leave can be carried forward to next Calendar year but carry forward
should not exceed 30 days. Leave should not be taken more than 3 times in a
Calendar year and for which application before 15 days should be made.
3.4 In addition, 7 festival and 3 National Holidays and 7 days Casual leave shall
also be availed by employee of contractor during the Calendar year.
3.5 Contractor shall maintain leave record register.
4.0 Attendance Card
4.1 Contractor has to provide attendance card to his employee who will obtain
endorsement of time of arrival at the work place and time of leaving the work
place. The contractor shall maintain Attendance card which will be retained by
his employee and will be handed over to the contractor after the end of each
4.2 Contractor shall provide to each of his employee an identification card which
shall have his photograph verified by contractor, his name, place of work and
name of the contractor.
5.0 Statutory obligations
5.1 Contractor shall engage only adult workers who have attained the age of 18
years and female workers shall not be employed between 7 PM to 6 Am
days including Sundays and Holidays.
5.2 Contractor shall observe local laws. As far as possible unskilled workers shall
be engaged from the local areas only in which work is being executed.
5.3 Contractor shall not employ any inter-state migrant workmen as defined in the
Inter-State Migrant Workmen Act in the establishment except by prior
permission of the Principal Employer.
5.4 Contractor shall observe Provisions of the Factories Act in respect of working
hours, holidays, rest intervals, leave and overtime to his employee. No work
shall be done on second/third shift, overtime, Sundays or on other declared
holidays without written permission.
5.5 In case a contractor employs women as his employee, he will discharge his
obligation under law in respect of such women workers such as prohibition of
engaging them during night-hours, prohibition of employing them for more than
9 hours per day, provision of creche facility, grant of maternity leave as per
5.6 Payment of bonus under the Payment of Bonus Act, Payment of gratuity under
the payment of Gratuity Act, will be the sole responsibility of the contractor.
6.0 PF & ESI Contribution & Returns
6.1 Contractor shall remit Provident fund contribution of employee’s together with
Employer’s within 15 days from the date of disbursement of wages to his
employee. Monthly and annual returns in 3A & 6A prescribed forms
submitted to the RPFC office, Bhopal. Present rate of employer share of PF is
13.61% and employee share is 12%.
6.2 Contractor shall remit ESI contributions of employee’s together with employer’s
within 21 days of the last day of the calendar month in which the contribution
falls due and shall send a return of contribution in Form 6
before 12th May and
12th November of every year alongwith receipted challans to ESI office.
Present rate of employer share is ESI 4.75% and employee is 1.75%
6.3 Contractor shall submit a copy of latest PF& ESI returns and inspection reports
from statutory authorities alongwith a copy of challans for having deposited PF
& ESI contributions every month.
6.4 Contractor shall submit following Certificate for each contract separately.
“ It is certified that PF challans of the amount -------------------- pertains to my
workers whose names are appearing in the wage sheet of the month -------------
------ and these workers are engaged in --------------------------- (type of work)
against work Work order no. ------------------------ in --------------- (name of
Signature of Contractor
Note : - Similar certificate shall be submitted for ESI also.
6.5 Contractor shall fully comply all other formalities as per the PF & ESI statutory
provisions and submit a copy of the same for replying to Statutory authorities in
case of any complaints.
7.0 Contribution to M.P. Welfare Board
7.1 Contractor should ensure payment of contribution as per section 9 of “The M.P.
Shram Kalyan Nidhi Adhiniyam 1982. Both employee’s contribution and
employer’s contribution should be paid every year before 15
th day of July and
15th day of January.
7.2 Presently, if the name of employee stands on the register of an establishment
th June and 31st December respectively, the amount of contribution
payable every six month by every employee shall be ONE RUPEES only and
by an employer shall be THREE RUPEES payable every six months. The
contribution payable by employer every six month shall not be less than Rs.
8.0 Medical care in case of accident
8.1 It is the responsibility of contractor to undertake necessary care and make
arrangement for transportation and the treatment of his employee at ESI
Hospital. Medical treatment in emergency cases on written request of
contractor shall be done in Kasturba Hospital for which the charges should be
deposited in advance or BHEL is authorised to deduct the medical expenses
from the bills of the Contractor. BHEL will have the right to deduct the medical
expenses from the bills of the contractor.
8.2 Contractor should assist and guide his employees for claiming lawful benefits
Contractor shall employ adequate number of competent and qualified
supervisors to supervise and control his employee at the work spot during
execution of work for effective supervision. They will also identify their
employee and regulate entry at gate at the time of entering and leaving the
factory. Name and address of the Supervisor shall be submitted to the
concerned department by the contractor.
10.0 Payment of wages
10.1 Payment shall be made by the contractor to his employees as per their
category & nature of work, which shall not be less than the rates declared from
time to time under Minimum Wages Act, by Govt. of M.P.
10.2 Over and above the daily wage rate, payment shall be made for leave with
10.3 Contractor shall be responsible for making payment of wages before expiry of
7 days from the last day of wage period and to ensure disbursement of wages
in the presence of the authorised representative of contract operating division
who shall record under his signature at the end of entries in the Register of
wages in the following form
“ Certified that the amount shown in column no. ………. has been paid to the
workers concerned in my presence on date ………….. at time…………..”.
Signature of representative
10.4 Contractor shall distribute wage slip to his employee one day before the last
day of the month.
10.5 Contractor shall furnish a copy of the Wage Bills after disbursement of wage to
his employee duly witnessed by the nominated representative of the contract
operating division. The contractor must note that this copy will be used by
BHEL to make payment of wages for the subsequent month in the event of
failure on the part of contractor to make payment of wage within the prescribed
period. If payment of wage through this method in the absence of any other
available document results in excess payment than what is due and
admissible to the employee of the contractor, the responsibility for such
excess payment will be that of the contractor.
11.0 Safety and disciplinary action
11.1 Contractor shall ensure that his employee does not indulge in any unsafe or
hazardous practices. They use safety equipment such as safety belts, safety
shoes, goggles, helmet and masks where use of such equipment is required in
day-to-day operations. All such safety gadgets will be provided by the
contractor failing which the contract operating division will provide safety
equipment to such employee of the contractor at the cost of the contractor to
be recovered from his bills. Contractor shall fully indemnify BHEL against any
claim for damages for injury to person or property resulting from such
11.2 Contractor to ensure that employee deployed in the premises is physically and
mentally fit and do not have any criminal record.
11.3 Contractor will be responsible for good conduct of his employees. In case of
misconduct, contractor shall take prompt disciplinary action as per "Model
Standing Orders" on the advise of Contracting officer.
11.4 The contractor has to provide a distinct uniform different from BHEL
employees. The Uniform should have logo of the Contractors firm / company.
The uniform shall be kept in neat, tidy and wearable condition. Wherever
necessary, the Cap shall be integral part of the uniform.
11.5 Contract awarded is liable for termination for any contravention of statutory
provisions or any other reasons without assigning any explanation or notice to
11.6 Contractor shall fully comply provisions of various applicable labour laws.
12.0 Records & information to be furnished by contractor
12.1 Contractor shall maintain neatly, completely and legibly registers, records,
reports and returns for inspection by various authorities at short notice.
12.2 Contractor shall submit the details of work awarded to him by other
departments indicating work order No., nature of work and maximum number
of workers employed etc.
12.3 Contractor shall provide information as required in respect of all of his
employees employed by him to enable the Contract operating division to
monitor compliance of P.F./ESI and also to enable him to furnish information
to Ministry and Labour deptt. as may be required.
12.4 Contractor shall provide full particulars of each employee employed by him
before start of the work and from time to time. He will also endorse a copy of
returns furnished by him to the Labour Department under the Contract Labour
(Regulation and Abolition) Act 1970 .
13.0 Security deposit & Indemnity Bond
13.1 Contractor shall make Security Deposit to use this security amount to
discharge any legal obligations otherwise cast on the contractor under the
Contract Labour (Regulations and Abolition) Act, The Factories Act, Workmen
Compensation Act, The Minimum Wages Act, The Payment of Wages Act,
The Interstate Migrant Workmen Act or any other law for the time being in
force. Security money shall remain upto 3 months after termination/
completion of contract. No interest shall be payable on such Security deposit.
13.2 Notwithstanding the above, in case of any financial loss incurred by company
on account of contravention of Provident fund, ESI, Minimum Wages Act or
any other act, rule and regulations the contractor shall be responsible to make
good the loss incurred by the company.
13.3 The contractor will not engage any sub-contractor without a specific
permission in writing and where so permitted he will furnish an Indemnity
Bond. Indemnifying the BHEL from any actions of his sub-contractor(s) which
may be involving extra financial liabilities.
14.0 Abandoning the work
In the event of contractor abandoning the work or BHEL revoking the contract,
BHEL shall deserve the right to get the unfinished work completed at the
contractor’s risk and cost.
15.0 Termination of Contract
Contract awarded is liable for termination for any contravention of statutory
provisions or any other reasons without assigning any explanation or notice to
16.0 Compliance of Statutory provisions
16.1 Contractor shall fully comply provisions of the following enactments and other
enactments as applicable for such contracts.
• Contract Labour (R&A) Act 1970 and rules 1971.
• Payment of Wages Act.
• Minimum Wages act 1948, M.P. Rules 1958.
• Employees State Insurance Act 1948, Rules and Regulations 1950.
• Employees Provident Fund Act 1952 and Pension Scheme 1995.
• Workmen’s Compensation Act 1923.
• M.P. Industrial Relations Act 1960, Factory Act 1948.
• Maternity Benefit Act 1961.
• Equal Emolument Act 1976.
• M.P.Shram Kalyan Nidhi Adhiniyam 1982.
• Payment of Bonus Act 1963, Payment of Gratuity Act 1971.
• Inter State Migrant Act
GUIDE LINES IN CASE OF ACCIDENT
A) Steps to be followed
1) Locate the contractor & also inform CLC with the full details of the injured person
2) Take the injured person immediately hospital for first aid to.
a) ESI Hospital b)OHS of BHEL
3) The contractor should report the accident in form 16 to Manager (ESI), Sonagiri,
Bhopal within 24 hours of accident.
4) After First aid treatment, the contractor should immediately take his employee for
further treatment & admission at ESI Hospital, if required. In case of
hospitalisation in Kasturba Hospital, the contractor shall deposit necessary
amount in the hospital, for getting the treatment & get his employee discharged as
soon as possible for further treatment in ESI hospital.
5) Contractor should inform the concern deptt. & contract labour cell in case where
absence is more then 48 hours.
6) Contractor should inform the date of joining to the CLC for informing the statutory
B) Benefits from ESI as per ESI Act
1) Disablement benefits at @ 70% of wages for his absence from work, if the injured
person avails the medical treatment in ESI hospital.
2) In case of partial / permanent disablement the compensation as judged by
Medical Board will be paid by ESI for life, proportionate to the loss of earning
As the disablement benefit / sickness benefit is given by ESI, it is advisable that
the contractor should help the injured employee to take treatment in ESI Hospital only
and also for availing all statutory benefits.
C) Reporting of Accident by concerned department
Procedure as being followed for regular employee in BHEL Bhopal should be
followed for employees of the contractor also.