Understand contract labour, PF, ESIC, minimum wages and documentation when you outsource manpower — and how to protect your organisation as the principal employer.
Who is the principal employer?
When you engage outsourced staff through a contractor, your organisation is generally treated as the principal employer under Indian labour law. The contractor employs and pays the staff, but the principal employer can be held liable if statutory dues are not paid. That's why choosing a compliant manpower partner matters.
Key compliance areas to verify
- Minimum wages — wages must meet the notified rates for the state, category and skill level.
- Provident Fund (EPF) — monthly contributions and ECR challans for eligible employees.
- ESIC — health insurance contributions for eligible employees.
- Contract labour registrations and licences, where applicable.
- Bonus, leave and gratuity provisions as per applicable law.
- Wage registers, attendance records and salary proofs.
Documents to ask your vendor for every month
Ask for PF and ESIC challans with employee-wise details, a salary register, attendance records and the GST invoice. Keep them on file for audits. A good vendor will share these proactively.
How JIS removes the compliance burden
JIS manages hiring, verification, payroll and statutory compliance for every outsourced employee, with transparent monthly reporting. We are not a placement agency — we are a long-term service partner, so there is no placement fee.
This article is general information and not legal advice; please consult your legal or HR advisor for your specific situation.