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Vendor & contractor compliance / for principal employers

Your contractors' workforce, verified before you clear a single invoice.

In India, the principal employer answers for the contract workforce on its premises. We carry the verification, the statutory filing and the audit trail across every vendor. You keep vendor selection and the payment-release decision.

  • 1,000+enterprises safeguarded
  • 99%compliance standard
  • ~40%lower compliance cost
Know your exposure A contractor's PF, ESI or wage lapse can land as your penalty. Under India's labour codes and social-security law, the principal employer answers for the workforce engaged on its premises. See broad compliance

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01The stakes

When a contractor slips, the exposure is yours.

Engage a vendor and you take on more than their invoice. If their workers are underpaid, or their PF and ESI go undeposited, the recovery, the prosecution and the questions from your board and clients come to you as principal employer. The fix is not to worry harder; it is to verify every vendor before you pay them.

Financial and penal exposure. Unpaid wages, damages and contributions can be recovered from the principal employer, and officers can face prosecution under India's labour codes and social-security law, PF and ESI included. The vendor's shortfall becomes your cost.

The deemed-employment question. A contract arrangement that does not hold up on paper can put worker absorption and back-pay on the table. Clean documentation per contractor is what keeps the line between your workforce and theirs defensible.

Reputation and client audits. ESG reviews and customer audits now examine how the contract workforce on your sites is treated. A vendor's lapse can turn into a brand issue and a contract-renewal risk, well beyond the fine.

You keep

Selection and sign-off

  • Which vendors you engage and on what commercial terms.
  • The payment-release decision on every invoice.
  • Materiality thresholds and final sign-off on what you file.
  • The relationship with your vendors. We operate inside your controls, not around them.
MYND carries

The work and the accountability

  • Document collection and verification for every contractor, every cycle.
  • Wage, PF and ESI checks surfaced before an invoice is cleared.
  • Statutory registers, returns and filings kept current per site.
  • Third-party audits and the defensible register, plus tracking every regulatory change.
02Complete coverage

Every statute your contract workforce touches, covered.

Across factories, project sites and establishments, we check each contractor against the statutes that make a principal employer answerable for its vendors. Four areas, one register.

01

Workforce engagement & licensing

Is the contractor licensed and registered to deploy this workforce, whether facilities, construction or private security, on your site at all? We verify it before work begins.

Contract Labour (R&A) Act, 1970 Building & Other Construction Workers Act, 1996 Private Security Agencies (Regulation) Act, 2005
02

Statutory payments & wages

Are the contractor's workers paid at least the minimum wage, on time, with bonus, gratuity and any state house-rent allowance where due? We reconcile it against wage registers.

Minimum Wages Act, 1948 Payment of Wages Act, 1936 Payment of Bonus Act, 1965 Payment of Gratuity Act, 1972 W. Bengal HRA Rules, 1975 Maharashtra Min. HRA Act, 1983
03

Social security & welfare

Are PF and ESI actually deposited for every worker, with Professional Tax, Labour Welfare Fund, maternity and injury cover in place? We check the challans, not just the promise.

Employees' Provident Funds & MP Act, 1952 Employees' State Insurance Act, 1948 Maternity Benefit Act, 1961 Employees' Compensation Act, 1923 Labour Welfare Fund (State) Professional Tax (State)
04

Worker safety & compensation

On construction and project sites especially, are the safety, welfare and conditions-of-service obligations met for the people working under your name?

Building & Other Construction Workers (RE&CS) Act, 1996

Most of these central statutes are being consolidated under India's four Labour Codes, in force from 21 November 2025: contract-labour, inter-state migrant and construction laws under the OSH Code; minimum wages, wages and bonus under the Code on Wages; and PF, ESI, gratuity, maternity and employees' compensation under the Code on Social Security. Central and several state rules are still being notified, so we track each contractor against the applicable Act and its successor Code through the transition. Professional Tax, the Labour Welfare Fund and the Private Security Agencies Act continue in their own right.

03How it works

A gate every invoice passes through.

The register is not a report you read after the fact. It is a check that sits in front of your payments, so a contractor's lapse is caught in the cycle it happens, not at the year-end audit.

01

We map your sites and vendors Setup

Whether it is 20 vendors or 2,000, across one plant or ten, we map your contract workforce, your risk zones and the Acts that apply, then build a register that mirrors your policies. No rip-and-replace: we connect to the ERP and procurement systems you already run.

02

We collect and verify the documents Every cycle

Licences, wage registers, PF and ESI challans, insurance and returns, collected from each contractor and checked against the applicable statutes. Verified against the record, not taken on trust.

03

Nothing clears to pay unverified The gate

Each vendor's wage, PF and ESI status is surfaced before their invoice moves. A gap is flagged and held for correction. You keep the release decision, and you make it with the compliance status in front of you, never blind.

04

We file and keep the register audit-ready Ongoing

Returns and registers stay current per site, and every document is stored so it can be produced the moment an inspector, auditor or client asks how you assured your contract workforce.

05

We review as the rules change Continuous

Regulations shift and so do your sites. Regular reviews, risk scoring and corrective-action plans keep the register current, not frozen at go-live.

Start on one site or one vendor group. We prove the register and the audit trail on a pilot before you scale, so you see it work on your own vendors before you rely on it everywhere.

04What we manage

The work your team stops chasing.

From the first contractor document to the terminal benefit of a departing worker, the operational load of vendor compliance sits with us. Here is what that covers.

01

Core management & monitoring

  • Vendor compliance across factories, establishments and project sites.
  • Registers, forms and notices kept current under each applicable Act.
  • Compliance under the BOCW and Inter-State Migrant Workmen Acts for construction and migrant contract labour.
  • Minimum wages, and timely PF, ESI and LWF, verified for every contractor.
  • Principal-employer registration certificates updated as your vendor base changes.
  • Coordination with authorities on inspections and notices, and accident-related compliance for contract workers.
02

Contract-labour lifecycle

  • Entry and exit of contract workers managed to stay within licence conditions.
  • Statutory registers prepared and submitted for each contractor.
  • Retirement and terminal benefits for contract workers tracked to closure.
03

Benefits & worker support

  • ESI and EPF benefit facilitation for eligible contract workers.
  • Support for workers accessing the statutory entitlements they are owed.
  • A single point of accountability for every compliance task, on clearly defined SLAs.
05The register

Your vendor status, live.

Instead of chasing documents at audit time, you get one register that shows where every vendor stands right now, and every record behind it, ready to produce.

One live register, not a monthly PDF. Status per vendor and per site, updated as documents come in, so you can challenge any item and show any auditor exactly where a vendor stands today.

Every document, retrievable in seconds. Licences, returns and audit reports digitized and stored, so an inspection never means a scramble through filing cabinets.

Automated audits and risk scoring. Periodic vendor audits run on a schedule, gaps scored by exposure, and corrective-action plans raised before a lapse becomes a liability.

Runs onMYNDX platformVendorXCompliance dashboards
06Benefits by team

One register, read differently by each desk.

Compliance, procurement and leadership each carry a different piece of vendor risk. The same live register answers all three.

Compliance & legal

Compliance, legal & EHS
  1. Regulatory risk minimized and penalties avoided across the contract workforce.
  2. Audits simplified with centralized documentation and a real-time status per vendor.
  3. Regulatory change tracked for you, so you are never the last to know.
  4. Faster, accurate statutory reporting, ready the moment an inspector asks.

Procurement

Procurement & vendor management
  1. Vendor onboarding accelerated with compliance checks built in from day one.
  2. Complete visibility into every vendor's compliance status, in one place.
  3. Admin workload cut through automated document and reminder workflows.
  4. Stronger vendor relationships through clear, transparent expectations.

Senior leadership

CFO, COO & the board
  1. Organizational risk contained with end-to-end oversight of the contract workforce.
  2. Lower compliance cost and a lighter load on your internal teams.
  3. Brand and ESG standing protected through ethical vendor governance.
  4. Decisions grounded in real vendor compliance data, not assurances.
07Why MYND

Two decades inside other companies' compliance.

Vendor compliance is not a side-line for us. It is part of the back-office we have run for 1,000+ enterprises across 50+ countries for 25 years, with specialists in central and state law and technology built to keep it audit-ready.

0+
Enterprises safeguarded
across 30+ industries
0+
Years of compliance depth
central & state law
0+
Professionals
compliance specialists on the team
0+
Countries
served directly
~40%
Lower compliance cost
typical when we own the work
0%
Client retention
year after year
0%
Accuracy & compliance
the standard, not the goal
20M+
Transactions a year
across the back-office we run
Recognised byEverest Group PEAK Matrix 2024NASSCOM AI/ML Award
Your data, held to standards you can verify ISO 27001 ISO 27701 SOC 1 & SOC 2 Type II DPDP-aligned Verify current scope in our Trust Center
08 FAQs

Vendor compliance, answered.

Straight answers to what compliance, procurement and finance ask before they hand vendor compliance over.

Still deciding? Talk to us
Why is a contractor's compliance my problem as principal employer?

Under India's labour codes, which consolidate the contract-labour, wage and social-security laws, the principal employer answers for the contract workforce engaged on its premises. If a contractor underpays minimum wages or fails to deposit PF and ESI, the liability, penalties and reputational exposure land on you. MYND verifies each contractor before you clear their invoices, so the lapse is caught before it becomes yours.

What does MYND check for each vendor?

Licensing and registration for contract labour and, where relevant, construction and private security work; minimum wages, timely wage payment and bonus; PF, ESI, gratuity and Labour Welfare Fund contributions; Professional Tax; and worker safety and compensation cover. Each contractor gets a documented monthly compliance status per site.

Do you hold payments until a vendor is compliant?

We verify each contractor's wage, PF and ESI compliance and surface any gap before their invoice is cleared. You keep the payment-release decision; we give you a defensible verified-or-flagged status for every vendor so nothing is paid blind.

What is the difference between an internal review and a third-party audit?

An internal review is run by your own team and can miss what it is close to. A third-party audit gives an independent, unbiased assessment of a contractor's compliance against the applicable Acts, which is what stands up when an inspector, auditor or client asks how you assured your contract workforce.

How often are vendors audited?

Frequency follows your risk profile and the statutory calendar. For contract-heavy sites we recommend a monthly compliance status with quarterly deeper audits, so exposure is caught within the cycle it arises, not at year-end.

Can we start with one site or one set of vendors?

Yes. Start with one plant, project site or vendor group, prove the register and the audit trail on a pilot, and add the rest as you grow. The engagement is modular, with no rip-and-replace of the systems you already run.

How is our vendor and worker data protected?

Data is held under ISO 27001 and ISO 27701 controls, encrypted in transit and at rest, with role-based access and a complete audit trail, and handled in line with India's DPDP Act. You can verify the current scope in our Trust Center.

09 Let's talk

See your exposure before you commit to anything.

Tell us where to start: one plant, one project or a vendor group. We'll run a free exposure check, show you which contractors carry risk today and what it could cost, and prove the register on a pilot before you rely on it.

OfficeReach Comercia Corporate Tower, 3rd Floor, Sector-68, Sohna Road, Gurugram, Haryana 122101
DeliveryIndia · Malaysia · UAE & the Middle East
HoursMon–Fri, 9:30am–6:30pm IST
10 Get started

Your contract workforce, one accountable partner.

Hand over the verification, the filings and the audit trail for your vendors. You keep vendor selection and every payment-release call, and gain a register you can put in front of any inspector.

Vendor Compliance | MYND Integrated Solutions