Contract Labour Act, 1970
Contractor licensing, principal employer registration support, register maintenance, and the documentation trail connecting deployment to wages to statutory contribution.
Solutions · Compliance Management
Labour Law and Statutory Compliance Management
Licences, registrations, registers, returns and inspection support, maintained continuously for employers across manufacturing, logistics, retail and industrial operations. This is the layer we built the business on.
Audit-ready every day of the year, not the week before
Compliance only holds when it is continuous. A register has to be written as events happen, because a period that has already passed cannot be documented afterwards. A licence has to be renewed against the headcount actually deployed. A wage register has to reconcile to attendance from the month it was created, not from the month someone asks to see it.
SourceIT runs compliance as an operating discipline. Registrations are tracked against renewal dates. Registers are maintained in the prescribed formats as events occur. Returns are filed against a calendar. Documentation is assembled before anyone asks for it.
When an inspector arrives, there is nothing to prepare.
The compliance areas we manage
Central legislation and the state rules that implement it, handled as one account.
Employees' Provident Fund
Establishment and member registration, UAN generation and KYC, monthly ECR filing and remittance, transfers, withdrawals and inspection response.
Employees' State Insurance
Establishment and employee registration, monthly contribution filing and remittance, and support for benefit claims and disputes.
Shops and Establishments
Registration and renewal under the applicable state legislation for each location you operate.
Minimum Wages and Payment of Wages
Wage rate mapping against the applicable scheduled employment and zone, revision tracking, and wage register maintenance.
Bonus and Gratuity
Eligibility computation, provisioning and statutory record maintenance under the Payment of Bonus and Payment of Gratuity Acts.
Professional Tax and Labour Welfare Fund
Registration, deduction, remittance and returns under the applicable state rules.
Maternity Benefit and Equal Remuneration
Policy support and statutory record maintenance, alongside workplace safety obligations.
Apprenticeship compliance
Registration, contract execution and statutory reporting under the Apprentices Act, 1961 and NAPS. See NAPS Apprenticeships.
Contract labour compliance and principal employer liability
When you engage contract labour, the law does not transfer the consequences of non-compliance along with the work. Under the Contract Labour Act the principal employer carries residual liability. If wages go unpaid, the principal employer can be required to pay them. If records do not exist, the principal employer's site is the one the inspector is standing in.
Every worker SourceIT deploys sits inside the structure below by default. It is not an add-on, and there is no version of our staffing engagement that leaves it out.
What proper contract labour compliance requires
A valid contractor licence for the site, covering the actual deployed headcount, renewed before expiry.
Principal employer registration in place and current.
Statutory registers maintained in the prescribed formats, contemporaneously.
Wage payment through auditable channels, with the wage register reconciling to attendance and to payroll output.
PF and ESIC contributions filed and remitted, with proof retained and producible.
Annual and half-yearly returns filed to schedule under the applicable central and state rules.
Documentation available at the site itself, not only at a head office in another city.
Registers and records we maintain
Kept in the prescribed formats under the applicable central and state rules, updated as events occur.
Register of workers employed, and register of contractors
Muster roll and attendance records
Wage register, wage slips and wage payment records
Register of deductions, fines, damages and advances
Register of overtime
Leave register and leave with wages records
PF and ESIC contribution records and challans
Employment and appointment records, with verification documentation
Statutory notices and abstract displays at site
The reconciliation rule
Attendance, wage register and payroll output must agree. Those are the three documents an inspector compares first. We reconcile them monthly, before filing, so the agreement is established long before anyone checks it.
Inspection support
An inspection is a conversation about how the site actually operates, so someone who knows the answer should be standing there.
We attend in person
A SourceIT compliance representative is present at inspections relating to workforce we deploy, in person.
Documentation is pre-assembled
The inspection pack exists as a maintained artefact month to month, so it is produced on request.
Responses are drafted and tracked
Notices, observations and show-cause responses are prepared, filed within the response window and tracked through to closure.
Findings feed back into the process
Anything an inspection surfaces is corrected in the operating process itself, not only in the response letter.
The compliance health check
Before changing anything, it is worth knowing where you stand. A compliance health check reviews your current position across registrations, registers, filings and site documentation, and produces a written finding list ranked by exposure.
Licence and registration currency
Register completeness and format
Filing history against due dates
Wage register reconciliation
Site documentation and display compliance
Contractor documentation where third parties are engaged
Book a Compliance Health Check
Talk to a Compliance Expert
You get a written report of findings, ranked by risk, with the remediation sequence. Yours to keep, whether or not you engage us.
Frequently asked questions about statutory compliance
What is statutory compliance in HR?
Statutory compliance is the obligation to operate within the labour and employment laws that apply to an establishment: registration and licensing, wage and working condition standards, social security contributions such as PF and ESIC, record maintenance in prescribed formats, and periodic returns to the relevant authorities.
Who is liable if our contractor does not comply?
The principal employer retains residual liability under the Contract Labour Act. If a contractor fails to pay wages or maintain records, the obligation can fall back on the principal employer. This is why contractor selection is a risk decision as much as a price decision.
What documents does a labour inspector usually ask for?
Typically the contractor licence and principal employer registration, muster roll and attendance records, the wage register and wage slips, PF and ESIC contribution proof, the register of workers, and the statutory abstract displays at site. The most common finding is that attendance, wage register and payroll do not reconcile.
Do compliance requirements differ by state?
Yes, significantly. Central legislation is implemented through state rules, and minimum wage notifications, register formats, return schedules, professional tax and welfare fund applicability all vary. A multi-state operation is running several regimes at once.
Can you manage compliance without providing our staffing?
Yes. Compliance management is available as a standalone service, including for a client's own directly employed workforce and for third-party contractors engaged at your sites.
How often should compliance be reviewed?
Continuously for filings and registers, with a full documented review at least annually and whenever headcount, site count or the nature of operations changes materially. A headcount increase can change licensing requirements on its own.
What happens if we have historical gaps?
Historical gaps cannot be undone, but they can be quantified, disclosed appropriately and remediated going forward. The health check identifies them so that you know your exposure and can plan the sequence in which to close it.
Runs alongside the rest of the stack
Recruitment & Staffing
Contract, temporary and flexi deployment, with every worker inside the compliance structure by default.
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Payroll Management
Salary processing, PF, ESIC, TDS and Form 16, filed on the same calendar the registers are kept to.
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NAPS/NATS Apprenticeship
Registration, contract execution and statutory reporting under the Apprentices Act and NAPS.
Learn moreGet compliance ready. Talk to our team.
Tell us where you operate and what you run. We will walk you through the obligations that apply to those sites, what your current position already covers, and what it takes to close the rest.