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Parag Kumar (Legal officer)     09 September 2011

Labour law query

Can anyone let me know that if a company is involved in agricultural business for that business employes labourers in various fields through a contractor and on daily wages but those labourers get there wages on completion of every month and their ESI and PF also gets deducted from there wages. Then those labourers are eligible for how many holidays in a year and under which act and which provision. And whether they will be called as contract labourer as working under the contractor or labourer working under the employment of company.



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 7 Replies

V. VASUDEVAN (LEGAL COUNSEL)     09 September 2011

This query needs more details. Has the Contract duly registered with the Contract Labour Authorities. Is the contractor an independant firm/company or  a name lender. Please provide more details for clarifications.

Parag Kumar (Legal officer)     11 September 2011

Dear sir, 

the contractor  is not a registered one but actuly he is an independant person.

V. VASUDEVAN (LEGAL COUNSEL)     11 September 2011

In such case the Company is considered to be the principal employer and obglied to comply with all labour laws. As for leave please check if the business is registred under the Factories Act or Shops and Commercial Establishments Act. The leave entitlement would with the relevant Act and rules.

Parag Kumar (Legal officer)     12 September 2011

but sir what if the contractor is registered one or is not an individaul but a company and if our company is also registered under the factories act then what is the remedy?

V. VASUDEVAN (LEGAL COUNSEL)     12 September 2011

Please ready my answer properly. A Company has to be registered under the relevant Act - Has it been registered under the Shops & Establishment Act!

Parag Kumar (Legal officer)     12 September 2011

No, sir i meant the contractor as a contracting agency not company duly incorporated and our company being registered under the  factories act

KC AGGARWAL   26 April 2016

Whether or not the company is registered, it should come within the definition of Shop and Establishment act. The relevant definitions are as under:-

"commercial establishment" means any premises wherein any trade, business or profession or any work in connection with, or incidental or ancillary thereto is carried on and includes a society registered under the Societies Registration Act, 1860 (21 of 1860), and charitable or other trust, whether registered or not, which carries on any business, trade or profession or work in connection with, or incidental or ancillary thereto, journalistic and printing establishments, contractors and auditors establishments, quarries and mines not governed by the Mines Act, 1952 (35 of 1952), educational or other institutions run for private gain, and premises in which business of banking, insurance, stocks and shares, brokerage or produce exchange is carried on, but does not include a shop or a factory registered under the Factories Act, 1948 (43 of 1948), or theatres, cinemas, restaurants, eating houses, residential hotels, clubs or other places of public amusements or entertainment;

"establishment" means a shop, a commercial establishment, residential hotel, restaurant, eating-house, theatre or other places of public amusement or entertainment to which this Act applies and includes such other establishment as Government may, by notification in the Official Gazette, declare to be an establishment for the purpose of this Act;

If yes, then proceeding under or applying the Shop and Establishment is the best bet in the facts and circumstances.  

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