Nowadays large number business processes are outsourced to Vendors/Contractors and such contractors deploy large number of workers at the premises of the Principal employer. Even though such Contractors are registered under ESI, PF, LWF and various other enactments including licensing under the Contract Labour Act, invariably the compliance carried out by the Contractors is ignored or neglected by the Principal Employer and hence audit of the contactors’ compliance needs to be conducted to understand if the contractor is meeting its contractual obligation. Such compliance audit is necessary to ensure compliance heath check up of the Contractors in respect of the employees deputed at the premises of the Principal Employer and thus insulate the Principal Employer from any eventuality which serve as a critical process for ensuring the Principal Employer and Contractor both are safe and on right side of the Law.
Please note that any non-compliance by the Contractor/Vendor, it is ultimately Principal Employer who is responsible and consequently for any default by the contractors the Principal Employer can be prosecuted.
