When you outsource housekeeping, security or technical staff, the people work at your site but are employed by your vendor. If that vendor cuts corners on statutory obligations, the principal employer can be held responsible. Before you sign, check these five.
- EPF registration and monthly deposits. Ask for the establishment code and recent challans showing provident fund contributions for the staff deployed at your site.
- ESIC registration and contributions. Eligible workers must be covered for medical and cash benefits. Ask for contribution records against named employees.
- Minimum Wages Act adherence. Wages must meet the notified rates for the state and skill category. Check the wage register, not just the quote.
- Contract labour licence. Where the Contract Labour (Regulation and Abolition) Act applies, the contractor needs a valid licence and the principal employer a registration.
- Employees' compensation cover. Workers must be covered for workplace injury. Ask for the policy and confirm it names your site.
How Lorvenx handles it
Lorvenx handles payroll processing, statutory compliances and labour licensing for employers. See our Payroll & Compliance services.