Legal Document Details

by shreeyaa

We are having recruitment consultancy but now we want to start contractual staffing services. please tell me the legal process means what type of formalities we should do.

Is PF & ESI is required for vender and if yes than please tell me process to fill this.


Thank you for this question. I am not a legal consultant so my first recommendation is to find a legal expert who knows the laws in you locality.

I can however give you some ideas on what topics should be covered.

When you take on a staffing job, you are employing a person through your company who is assigned to work at another job site. This means you have responsibility to pay that employee and manage the personnel side of the work.

The employer at the site (your client) must manage the day to day work and work with both you and the employee to make sure the right kind of work is being done at the right level of competency and effort.

In effect you are co employers since neither has complete control over the totality of the employee's work experience.

From a legal perspective, this means you need to have your agreement cover who is responsible for which parts of the employees work experience. Additionally should anything negative happen you need access to all records kept by your client regarding any accidents or situations.

Next you need to agree on payment and terms. You should always have some leverage if an employer does not pay you. Thing such as late fees, automatic rate increases and collection fees can give you some leverage. Of course you should say that you have the right to pull the employee off the assignment if you are not being paid.

Finally, make sure there is some limit of liability on your side and some limit in terms of the time a claim can be made against you regarding your relationship with the client.

Now again, these are just some principles. Depending on where you are located, law my or may not apply. You should seek legal counsel but use these ideas as talking points with your legal representative.

Good luck.

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