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The Contractor shall strictly adhere to Safety & hygiene standards / Guidelines as per HSE Policy. The list
provided below is an indicative list to explain the principles behind HSE practice. If the contract labour fails
to comply with safety standards as per category A, B C & D below, penalty shall be levied on the Contractor,
as per the table below:
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Improper handling of VTS Devices in car etc. Rs.2000/violation or actual
cost whichever is higher
# Near miss is an unplanned event that did not result in injury, illness, or damage but had the potential
to do so. Only a fortunate break in the chain of events prevented an injury, fatality or damage; in other
words, a miss that was nonetheless very near.
In case of Death / Disablement of the contract labour as per category E & F below, contractor shall be
responsible for payment of compensation to the injured person / legal heir of the deceased person, as per
the table below:
If the Contractor or its sub-contractor(s) fails to comply with legal or other compliances as per table below,
penalty shall be levied on the Contractor.
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Monthly compliances Penalty
Late PF remittance Rs.1000/- for each instance up to 30 days.
Beyond 30 days, notice will be served to the
contractor to comply within 7 days. If
Contractor fails, then Contract is liable to be
terminated
Late ESIC remittance Rs.1000/- for each instance up to 30 days.
Beyond 30 days, notice will be served to the
contractor to comply within 7 days. If
Contractor fails, then Contract is liable to be
terminated
Late Payment of Wages Rs.1000/- for each instance up to 30 days.
Beyond 30 days, notice will be served to the
contractor to comply within 7 days. If
Contractor fails, then Contract is liable to be
terminated
Annual compliances Penalty
Payment of Bonus (As per Act, bonus to be disbursed Rs.1000/- for each instance up to 30 days.
before 30th Nov) Beyond 30 days, notice will be served to the
contractor to comply within 7 days. If
Contractor fails, then Contract is liable to be
terminated
Delay in renewal of license application which is to be made Rs.1000/- for each instance up to 30 days.
one month before the expiry Beyond 30 days, notice will be served to the
contractor to comply within 7 days. If
Contractor fails, then Contract is liable to be
terminated
Other non-compliance Penalty
Loss of I Card Rs.1000/- per instance and Police
Complaint to be filed in each case and proof
to be submitted. Rs. 100/- per instance shall
be applicable only to visitors who are issued
Torrent I cards
GUIDELINES
1. This note shall also be applicable to OEM service contractors & manpower contractors (with the said
Contractors supervision). Applicability of this note to any Govt. Departments and companies like BHEL
or other PSUs or others shall be considered on a case to case basis and approval of Director-in-
Charge shall be obtained on the same.
2. Penalty / Compensation as per category A, B, C, D & E above including Legal & other non-compliance
penalties shall be subject to an overall ceiling (aggregate) of 5% of the Contract value.
3. In case of death / permanent disablement of the contract labour as per category F, the contractor has
to pay the compensation subject to an overall limit of 10% of the particular contract value (including the
limit under point 2 above).
4. Where the contract is a rate contract, Contract value for the purpose of calculation of the above
ceilings shall be replaced by billing value.
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5. Penalty shall be applicable to a particular contract under which incident has occurred and shall not
apply to other contracts held by such contractor. It shall be ensured that all work of same nature at a
location will be clubbed under one Contract. Only where the nature of services is different / location is
different, shall separate Contracts be awarded to a single Contractor.
6. Penalty for category A, B, C & D including Legal & other non-compliance penalties, would be deducted
in the bill placed immediately after the incident(s). In cases where the Contract value is not the same as
the Billed value (e.g. ARCs, Civil Contracts, etc.); the variation in the deducted amount based on
estimated value and actual value shall be adjusted in the final payment to the Contractor under the
Contract.
7. Compensation to the extent of the Contractors share, as per category E & F, in all Contracts shall be
paid directly by the Contractor to the injured person / legal heir(s) of the deceased person, under
intimation to the organisation. The balance amount if any (incl. both Employees and Organisations
contribution) shall be paid directly by the Organisation to the injured person / legal heir of the deceased
person.
8. Director-in-Charge of the Unit, in consultation with Select Committee, shall review in case a contractor
reaches 5% limit of such penalties and take a call on whether or not to continue with such a Contractor.
9. Any deviation to this guideline has to be approved by Director-in-charge of the Unit, in writing. Cases of
all such deviations are to be reported to Corporate once every quarter.
10. The definition of the Disablement shall be as per The Employees Compensation Act, 1923.
11. Whether a particular incident is near miss or not shall be decided by the Director-in-charge of the Unit
after discussing the same with the concerned officials as well as the representative of the Contractor
and Directors decision shall be final.
12. The organization reserves the right to change / modify / alter / edit / withdraw this guideline at any time.
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