LABOUR CONTRACT AGREEMENT

This is Contracting Agreement (The Agreement) is entered on 01 st January

2019, between M/s ………………………..(hereinafter referred to as
“Company”) (which expression shall unless it be otherwise repugnant to
the context or meaning thereof be deemed to mean and include his Legal
Heirs, Successors, Executors, Administrators and Assigns) of the party of the
FIRST PART.
And

M/s ………………………………………………………………………. an Independent

Contractor (hereinafter referred to as “Contractor”)” (which expression
shall unless it be otherwise repugnant to the context or meaning thereof be
deemed to mean and include his Legal Heirs, Successors, Executors,
Administrators and Assigns) of the party of the SECOND PART.
01. Recitals:

The Company desires to obtain the Work Services of Contractor on its own
behalf and Contractor desires to provide Contract Services to the Company
upon the terms and conditions in this Agreement.

WHEREAS, Contractor is recognized as the Expertise to do such kind of

Work and has taken or done similar such type of Jobs in other concerns.

WHEREAS, the Company requires the Services of an Expert Contractor; to

provide Services related to and in support of efforts in which Contractor has
Expertise under the mutual convents set forth below.
02. Scope and Nature of Work:
Company shall allow the Contractor the use of their Factory Premises,
Machinery, Equipment, Tools, Facilities, Utilities, Power and Provide to
Contractor required necessary Raw Material for manufacture of the Sheet
Metal Automotive Components and Contractor in turn agrees to
manufacture the material components to the requirements of the
Company.

Contractor shall do the Work as per Specification and Drawings and

Approved Work Plans produced by the Company. Contractor to perform
and execute all Works / Services in respect of the areas specified in to this
Agreement. The Specified areas of work may be increased or decreased
from time to time at the discretion of the Company.

The Management will decide the extra number of workers to be engaged

for execution of work on any given point of time. The Management also
reserves the right to reduce the number of persons at any given point of
time by giving Three days clear notice and in that event.

03. Contract Work Obligations:

The Contractor agrees to Execute, Fulfill and Discharge the Work and
Obligations hereinafter provided in the manner hereinafter agreed to the
entire satisfaction of the Company Management.

That the Contractor will execute and efficiently handle the work entrusted
to him with due diligence and in accordance with the directions and specific
instructions of the Company Management.
Contractor represents and warrants that it has examined and thoroughly
familiarized itself with all existing conditions affecting the agreed Contract
Services, including the laws that apply to, relate to, or affect the agreed
services
04. Work Location & Commitment:

You shall be responsible for all statutory compliances and industrial

relations of our Unit at …………………………………………………………..

05. Performance and Time Duration Commitment:

Contractor shall render full time services in a Week at the Company

premises or other places upon agreement of the parties.

The Company will periodically provide the Contractor with a Schedule of

the Work Assignments, Responsibilities and Deliverables for the applicable
period. The Nature of Work will be scheduled on an as-needed basis.

06. Selection and Control of Contract Labour:

Contractor must ensure that the Contract Labour deployed at the premises
of Company is physically and Mentally Fit and Do Not have any sort of
Criminal Record. Contractor must maintain appropriate Records of his
Contract Labour deployed to carry out the Job(s).

Contract Labour engaged by the Contractor shall be strictly of Age group

18yrs and above.

Contractor shall deploy only Trained and Well Disciplined Labour at the
Premises of the Company

Contractor must Provide Employment Card / Identity Card with Photograph

duly attested by the Contractor to his Labour.

Contractor shall obtain Complete Bio-Data and Antecedent Verification in

the Prescribed Format for each Labour and Supervisor engaged by him and
shall submit the same to the HR Department before Commencement of the
Work. Contractor should engage only those who shall be more than
18(Eighteen) years of age.

In case of Employment of Women for Work by the Contractor, Contractor

will have to discharge his Obligations under Relevant Laws, Acts.

07. Planning and Control of Contract Labour:

If Contract is on Job Work basis then Contractor shall decide the number of
Workmen required and engaged for the Execution of the Job. He will review
his Work as to the number of workmen required from time to time i.e.
decrease or increase the workforce of his job. The Contractor shall decide
the mode and manner of work to be done by his workmen. The Contractor
shall be solely responsible for the acts of omission and commission by the
persons engaged by it in the discharge of its obligations under this
Agreement.
Otherwise Contractor agrees to provide additional manpower at Short
notice given by the Company for temporary manpower deployment on the
same rates which were mutually agreed. At the same time due to any
reasons whatsoever if the allotted Contract Labour remains absent for day
or more then the Contractor must arrange the replacement without any
additional charge to Company to fulfill the agreed strength of the Contract
labour.

Position regarding manpower requirement will be reviewed from time to

time depending upon the changes in work content / deployment and actual
manpower agreed and deployed accordingly only will be considered for
Payment.

08. Maintaining Discipline in the Premises:

Labour engaged by the Contractor should be Disciplined and Exhibit Good

Conduct & Behavior in dealing with employees of Company. They shall not
in any manner cause any Interference, Annoyance, Nuisance to the
Management or its Business or Work or its other Contractors

The Contractor shall take appropriate Disciplinary action against the

Workman if he is found to have committed any acts of Misconduct
including Discharge or Dismissal after Compliance with the required Labour
laws.

If Company finds that the Conduct, Behavior and Performance at Work of

any of its Contract Labour is Unsatisfactory, It may issue directions to the
Contractor to immediately recall the Particular person and substitute him
by another and Contractor shall comply with such directions issued by the
Company further with.

09. Providing Safety Shoes & Uniforms:

The Contractor is responsible to provide his Labour with Pair of Safety

Shoes and Pair of Uniforms (Uniform should not be of similar Color as of
Regular Staff of the Company) otherwise the same will be provided by
Company and incurred Cost will be deducted from Contractor’s Monthly
Bill.

10. Mode and Methods of Rate of Calculation:

Company will pay to the Contractor as per agreed Rates.

The number of Contract Workmen required to be deployed must also be
discussed between Company & Contractor.
In case of any revision, the same must be agreed upon between the
Company and Contractor.
Contract Bill shall be subject to Deduction of all Applicable Taxes as per
statutory norms.

11. Payment Terms & Conditions with Stipulated Time Periods:

Company shall pay to Contractor invoiced amount not later than 15 days
after the receipt date of the invoice. The Contractor shall submit the bills to
the Company along with Documents of Performance of Work as per
Contract and shall be paid only based on those Documents. Subject to
deduction of the amount proportionately to the Defective Job / Work /
Performance.

The Contractor shall disburse Wages to his Workmen on or before 7th of

every month. The Contractor shall pay its Labour the Wages which shall not
be less the Minimum Wages fixed by the Government and as Revised from
time to time by the Government. It shall also give such persons all Benefits
and Welfare Measures provided for under any statutory law for the time
being in force.

Contractor shall issue every month Pay slip to Contract Labour clearly
indicating their Earned Wages

In case the Contractor fails to make Payment of Wages to his Labour or

Payment of Bonus to Contract Labour or Remittance of Statutory
Contribution to the concerned authorities, the Security Deposit / Other Bill
payment dues under the Contract can be utilized by the Company to
discharge the liability of the Contractor.

12. Adherence to Statutory Compliances / Liabilities:

Contractor shall comply with all Statutory Requirements, Rules,

Regulations, Notifications in relation to Employment of his Labour issued
from time to time by the concerned authorities within the stipulated time
periods and shall furnish the Copies of such Remittances Proofs.

The Contractor must obtain a Valid Contract License issued by the

competent designated Statutory Authority, under the Contract Labour
(R&A) Act and the Rules framed there under.

The Contractor shall comply with the following Statutory Acts or any other
applicable Labour Laws.

1. The Contract Labour (Regulation & Abolition) Act, 1970.

2. The Employees’ State Insurance Act;
3. The Provident Fund and Miscellaneous Provisions Act,
4. The Minimum Wages Act, 1948
5. The Payment of Wages Act, 1936
6. The Factories Act, 1948
7. The Workmen’s Compensation Act, 1923
8. The Payment of Bonus Act, 1965
9. The Payment of Gratuity Act, 1972

Contractor shall have Valid Contractor Labour License and shall engage only
that Number of the Persons in the Company Premises as Specified in the
Labour License and he shall periodically renew the Labour License as per
the Provisions of the Contract Labour Act

Contractor shall have their Own Independent Provident Fund and ESIC
Establishment Code Numbers allotted by the respective Authorities,
Contractor shall make the necessary payments under the P.F. Act 1952 and
ESI Act 1948 and shall submit the necessary remittance document proofs
along with the monthly Bill.

In case ESIC is not applicable, then The Workmen’s Compensation Act, 1923
should be Applicable.

Contractor shall submit Copies of the Statutory Challan Payments,

Monthly / Half yearly / Annual Returns to Company from time to time

Contractor shall be solely responsible for Non-Payment / Delayed Payment

of Wages, Contributions under EPF & MP Act, ESI Act etc.

Contractor shall maintain the required Registers, Records and Documents

as prescribed under the Contract Labour (Regulation & Abolition) Act,
Provident Fund Act; Employees’ State Insurance Act, and obtain the License
as and when it becomes applicable. All such records should be produced for
verification to Unit HR periodically and as when requested.

It is agreed that the Company shall not be Liable or responsible for any or
all Claims by or of the Workmen employed by the Contractor under the
Factories Act 1948, Industrial Disputes Act 1947 and other allied labour
legislations which shall be met by Contractor. It is understood and agreed
again that the Contractor shall be solely responsible for Payment of Wages
and other allowances if any, Wages for National and Festival Holidays as per
the Statutory and other Compensation or Payments as required by and in
accordance with Chapter V of the Industrial Disputes Act 1947 and of all
Claims under the Payment of Bonus Act and Payment of Gratuity Act.

13. Safety Precautions and Measures:

The Contractor shall provide the required Personal Protective Equipment

like Safety Helmets, Aprons, Safety Goggles, Safety Shoes, Hand Gloves,
Nose Masks, Welding Screens, Ear Plugs etc., to the Contract Laborers
engaged by him. All sorts of Safety Precautionary Measures to be taken
shall be deemed to form an Integral part of the Agreement and Non-
Compliance with Safety Requirement amounts to Breach of the Contract.
In case of a Fatal or Disabling Injury Accident to any Person due to
Negligent / Lapses by the Contractor. In that scenario Company shall have
the right to impose appropriate Financial Penalty on the Contractor and
Recover the same from Payments due to the Contractor for suitably
compensating the Victim or his Dependents. Before imposing the Penalty,
appropriate enquiry shall be held by Company.

14. Provision of Machinery, Equipment’s and Tools:

The Contractor shall be responsible for the upkeep and safe custody of
Company Equipment and Tools provided to him. Similarly, any damage or
Loss or Theft caused to the Machinery, Equipment and Tools entrusted to
the Contractor, the Contractor shall bear the Loss incurred to the Company
out of the above-mentioned acts or any other acts of due negligence of his
engaged Contract Labour.

15. Damages for Failure to Comply:

It is explicitly understood and agreed to by the Contractor that he shall

carry out the Work in a proper manner and if any defects should be found
therein the Company shall be entitled to Reject such Components / Goods
and Recover the Cost of the Raw Material Supplied.
That in case Contractor fails to complete the work assigned to him from
time to time he shall be liable for all liquidated and calculated damages
suffered or likely to be suffered by the Management and the Management
shall be entitled to deduct, the amount due, to the Contractor, if any, or
otherwise.

The Contractor shall be responsible for Rejections of the Items /

Components on Quality Parameters or Damage or Loss to the Company
caused due to the Negligence of the Workmen employed by him and Shall
Compensate the Company adequately for such Loss which shall be assessed
and determined by the Company.
16. Agreement Duration and Termination Terms:

The term of this Agreement shall commence on 01st April 2019 and shall,
subject to the provisions for termination set forth herein, continue until and
terminate on 31st March 2020. This agreement shall be renewed by mutual
consent of both the parties hereto for such period as may be determined.
However, in case of any breach of the Agreement by the Contractor, the
first shall have the right to terminate it forthwith without any notice.
During the Contract if the Company is not satisfied with Contractor services
or any other serious lapses from the Contractor side then Company is at
liberty to terminate the Contract.

If the Company terminates the accord prior to the expiration of the Term,
or the Contractor wishes to terminate the accord prior to the expiration of
the term of this accord one month written acknowledged notice is
necessary for both the parties

Upon termination of the Agreement, all Techno - Functional Records,

Manuals, Drawings, Graphs, Flow Charts, Registers, Documents,
Specifications and Other Documents pertaining to any Confidential
Information of the Company, whether prepared by Contractor or others
and all copies of any documents, shall be returned to the Company with
immediate effect.

Failure of the Contractor to Return Materials and Information as stated

herein above shall be construed as Criminal breach of trust of Company.

17. Covenants:

Contractor shall coordinate his activities with the Company and all activities
of Contractor shall require the prior written consent of the Plant Head of
the Company.

18. Confidentiality of Information:

During the Term and for a period of One year thereafter, Contractor shall
hold Company’s Confidential Information in Strict Trust and Confidence and
avoid the Disclosure or Release thereof to any Other Person or Entity.

Contractor shall not any time during or after the period of Contract Publicly
Divulge, Disseminate and Publish or otherwise disclose any Company
Confidential Information without the Company’s Prior Written Consent.

19. Agreement pertaining to Employees of Contractor:

Contractor agrees that all of its employees providing Services on

Contractor’s behalf to Company or having access to or receiving the
Company’s information shall, prior to providing such Services or such access
or receipt, execute employment agreements with Contractor binding such
employees automatically to assign ownership to the Contractor (or the
Company) of all Service Product, protective of the Company’s Information
commensurate with this Section and barring conflicts of interest and
covenants of non-competition with the Company at least as protective of
the Company as imposed on the Contractor.
20. Rights to Contractor Work:

The parties acknowledge that any work created by Contractor regarding the
performance of services for the Company pursuant hereto is being created
at the insistence of the Company and shall not be a property of the
Contractor.

The Company shall have the sole right to use the whole work, any part or
parts thereof, or none of the work, as it sees fit. The Company may alter
the work, add to it, or combine it with any other work or works, at its sole
discretion. Notwithstanding the foregoing, all original material submitted by
Contractor as part of the work or as part of the process of creating the
work, including but not limited to Technical Programs, Drawings, listings,
Printouts, Documentation, Notes, Flow charts, and Programming aids, shall
be the property of the Company whether the Company uses such material.
No rights are reserved by Contractor.

All programs, specifications, documentation and all other Technical

information prepared by Contractor about the performance of his services
hereunder will become the Company's sole property. Title to all material
and documentation, including but not limited to, systems specifications
furnished by the Company to Contractor or delivered by the Company into
Contractor's possession shall remain with the Company. Contractor shall
immediately return all such material or documentation not later than 2
days of any request or upon the termination or conclusion of his
engagement under this Agreement, whichever shall occur first.

21. Indemnification

Contractor agrees to indemnify Company against any damage by Contract

labour to the Product, Machinery, Equipment or the Facility or any other
legal obligation arising out.

Contractor agrees to indemnify Company from all loss or liability incurred

by reason of the alleged breach by Contractor of any obligation owed by
Contractor to Third Party.

Contractor agrees to indemnify and hold Company and its Director, Officers
and Employees harmless from any Legal action, Claims, Loss, Damages
orInvestigations arising out of the conduct of Contractor in performing
itsServices hereunder unless such activity or activities are required by or
doneat the request of Company.

22. Independent Contractor Status:

The Contractor shall operate always as an independent contractor of the

Company. This Agreement does not authorize the Contractor to act for the
Company as its agent or to make commitments on behalf of the Company.
This Agreement does not establish any Partnership, Joint Venture, or other
Business entity or Association between the Parties and neither party is
intended to have any interest in the business or the property of the other.

The Contractor acknowledges that it is an independent contract

relationship, not an employment relationship. The Contractor
acknowledges and agrees that the Company will not provide the Contractor
or its engaged Contract Labour with any Employee benefits and that it is
not entitled to any benefits provided by the Company to its Employees.

23. Observance of Company Rules:

At all times while on Company's premises, Contractor and its engaged

Contract Labour will observe Company's rules and regulations with respect
to conduct, health and safety and protection of persons and property.

24. Conflict of Interest:

During the term of this Agreement, Contractor will not accept work, enter
into a contract, or accept an obligation from any Third party, that is
inconsistent or incompatible with Contractor's obligations, or the scope of
Services rendered for Company under this Agreement.

The Contractor agrees to inform the Company of all the Contractor's

interests, if any, which may be, or which the Contractor has reason to
believe may be, incompatible with the interests of the Company or the
Company's customers. In addition to the foregoing, the Contractor agrees
not to make improper use of any information that comes to himself or his
agents or representatives in the performance of services under this
Agreement.

Contractor shall not engage into any activity, which is in competition with
Business of the Company and shall not in any manner concerned or
interested directly or indirectly with the Business of Manufacturing of Sheet
Metal Automotive Components and parts thereof of any type during the
tenure of this agreement and for further period of 5 years from the date of
completion of this agreement or extension of the same.

25. Waiver of Breach:

No term or provision hereof will be considered waived by Company, and no

breach excused by Company, unless such waiver or consent is in writing
signed by Company. The waiver by Company of, or consent by Company to,
a breach of any provision of this Agreement by the Contractor, shall not
operate or be construed as a waiver of, consent to, or excuse of any other
or subsequent breach by Contractor. This Agreement may be amended or
modified only by agreement of authorized representatives of the parties in
writing.
26. Adherence to Laws:

Contractor agrees that in carrying out his duties and responsibilities under
this Agreement, he will neither undertake nor cause, nor permit to be
undertaken, any activity which either (i) is illegal under any laws, decrees,
rules, or regulations in effect (ii) would have the effect of causing the
Company to be in violation of any laws, decrees, rules, or regulations in
effect

Contractor agrees to notify the Company immediately of any extortive

solicitation, demand, or other request for anything of value, by or on behalf
of any entity or individual, relating to the subject matter of this Agreement.

27. Successors and Assignment:

Contractor may not subcontract or otherwise delegate Contractor's

obligations under this Agreement without Company's prior written consent.
This Agreement is not assignable by Contractor. It shall not be assigned and
if assigned will not inure to the benefit of such successors or assignee's.
Subject to the foregoing, this Agreement will be for the benefit of
Company's successors and assigns, and will be binding on Contractor's
assignees.

28. Severable / Reformation Provisions:

Each provision herein shall be treated as a separate and independent

clause. Further the unenforceability of any one provision shall in no way
impair the enforceability of any other provision of this Agreement, and any
provision of this Agreement which is unenforceable in any jurisdiction shall
not render unenforceable such provision in any other jurisdiction.
Moreover, if one or more of the provisions contained in this Agreement
shall for any reason be held to be excessively broad as to duration, scope,
subject or activity so as to be unenforceable at law, such provision(s) shall
be construed by the appropriate judicial body by limiting and reducing it
(them), so as to be enforceable to the maximum extent compatible with the
applicable law as it shall then appear.

29. Notices / Correspondence:

Any notices required or permitted hereunder shall be given to the

appropriate party at the address specified below or at such other address
as the party shall specify in writing. Such notice shall be deemed given upon
personal delivery to the appropriate address or sent by certified or
registered mail, three days after the date of mailing.
30. Legal and Equitable Remedies:

Contractor hereby acknowledges and agrees that in the event of any breach
of this Agreement by Contractor, including, without limitation, the actual or
threatened disclosure of Information or Service Product without the prior
express written consent of the Company, the Company will suffer an
irreparable injury, such that no remedy at law will afford it adequate
protection against, or appropriate compensation for, such injury.
Accordingly, Contractor hereby agrees that the Company shall be entitled
to specific performance of Contractor's obligations under this Agreement,
as well as such further relief as may be granted by a court of competent
jurisdiction.

31. Arbitration:

In case of any Dispute / Differences arising out of and in relation to the

interpretation or observance of this Contract of Agreement between the
parties hereto, the same shall be mutually and amicably discussed and
settled by the Parties, failing which it shall be referred to Arbitration of a
Single Arbitrator under the provisions of Conciliation and Arbitration Act or
any statutory reenactment of the

Same in respect of this agreement, all Arbitration matters shall be taken up

with the Courts of Kanchipuram and Arbitrator’s decision shall be final and
binding on both the parties.

32. Captions:

The Captions contained in this Agreement are included only for

Convenience of Reference and Do not affect the Construction of this
Agreement or any part thereof

33. Entire Agreement:

The terms and provisions contained herein Constitute the entire Agreement
between the Parties and this Agreement shall supersede any and all
Previous Agreements, Whether Verbal or Written, which have been entered
into by and between the Parties with respect to the Subject matter thereof.
34. Counter Parts:

This Agreement may be executed in two or more counterparts, each of

which shall constitute and deemed to be an original and all of which
together shall be deemed to constitute a single and same agreement
instrument.

In witness whereof, the parties hereto have executed this Contractor

Agreement as of date set forth below.

Signed and Delivered for and behalf of

M/s ……………………………………….

By: Mr. …………………………………….

……………………………………….

Date: 01st April 2019

Signed and Delivered for and behalf of

M/s ……………………………………..

Mr. ………………………..
……………………………….
Date: 1St April 2019

We accept the above terms and conditions of the Agreement.