Please suggest on the following;
1.Our company has issued a Job Contract to a Contractor ( for a certain volume spreaded over a fixed period of say 1 year). Contractor has engaged labour at our premises for complition of the same.
2.Due to lack of order we (the Principle Employer) asked the contractor to stop work for one month. Contractor restricted labour entrance due to the reason of non availibility of site clearance.
3.In view of that contract workers unions are demanding lay off compensation as they were availlable during the period but contractor failed to provide work.
On the other contractor is rigid not to pay wages for one month siting the reason of No work No pay. IN THIS CASE ISN'T THE CONTRACTOR NEED TO PAY LAY OFF TO HIS WORKERS.?
4. FURTHER (IN A DIFFERENT CASE) WHETHER CONTRACTOR WHO HAS ENGAGED LABOUR FOR SIX MONTHS (LESS THAN 240 DAYS) IS LIABLE TO PAY RETRENCHMENT COMPENSATION TO THE WORKERS AFTER COMPLETION OF THE WORK?
When the work for which the workmen are engaged is completed, the relationship ends automatically. This will not amount to closing down of establishment within section 25FFA of the ID Act. While describing compensation payable in case of closing down of undertaking in section 25FFF, the subclause 2 states that where an undertaking is set up for construction of building, bridges........and is closed down within two years of its setting up due to completion of work, no compensation is payable to the workmen. At the same time if the work for which the undertaking was set up is closed down due to completion of work after two years of its staring the project then the workers will get compensation and notice as provided in section 25F. Therefore, the period within which the work is completed is also relevant in deciding the retrenchment compensation.
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