Using contract labour without proper compliance documentation exposes businesses to direct liability. Here is how to protect your organisation.
Contractor compliance is not complete when a vendor submits a bill. Principal employers need proof of registration, wage payment, PF and ESIC coverage, challans, returns, licences, and timely renewals.
Documents to verify
A contractor file should be reviewed before onboarding and then monitored every month. The evidence should match the worksite, worker count, wage period, and statutory coverage.
- CLRA licence or registration details where applicable.
- Wage disbursement proof, attendance, PF and ESIC challans, and returns.
- Indemnities, declarations, renewal records, and inspection responses.
Operational discipline
Set a monthly evidence cut-off, hold vendor invoices until documents are complete, and document every approval or exception with owner and due date.
How Iztty helps
Iztty helps teams onboard contractors, assign document checks, escalate missing evidence, and keep principal employer risk visible across sites.