02 March 2019
When contract labour are engaged in a company, labour contractor is employer and company is Principal employer. PMPRY is initiated to encourage new employment generation. Govt. is reimbursing employer's contribution to encourage employers for employment generation. However, in recent times it is observed some companies are demanding to repay employer's contribution paid by them to contractor towards contract labour. My query is, is principal employer entitled for the same?
03 March 2019
As PMPRY is initiated to encourage new employment generation, new employment is generated by principal employer so the principal employer is entitled for it.
27 March 2019
Still my query is though contractor is providing manpower for principal employer, actually employment generation such sourcing, deployment etc., will be done by contractor only. Statutorily too, contractor is first employer of contract worker, in case of his failure to pay etc., only Principal employer comes in. My observation is that as an employer, contractor is entitled for PMPRY benefit. I am a HR person, so query is still lingering in my mind. Please clarify.
CAclubindia
