In my years of heading a security and housekeeping agency, one of the most common questions people ask me is, who is responsible for the compliance of the security or housekeeping manpower. I will try to give my perspective on this, in this letter.

For compliances most of the customers feel that if they have taken the guard from a security agency, then the agency is responsible for all the compliances, whether it is ESI, PF, minimum wages, or most importantly over-time (in case of 12 hours of duty).

Needless to say, the agency has a very critical responsibility and it cannot wash off its hands from their responsibilities. However, the end customer, being the principal employer, is legally as bound as the agency, if not more. The only way the principal employer can pass off its responsibilities to the agency is, if it gives the agency a breakup which includes all the heads including ESI, PF, leaves, bonus besides having the guard do only 8 hours of duty for 6 days a week without any overtime at all. If this is not done then both the parties are equally responsible for the compliances. And you should at least get all the legally compliant paperwork from the security agency regularly prior to clearing its bill.

This is obviously relevant for housekeeping as well.
I hope it helps. Feel free to connect with me if you need any further help and information.

Regards,
Ravi Kapur