Industrial Relations And Labour Laws
Safety Consultant

Hi, Pls help me out to understand that in contract labour act, who will be lieable to pay Bonus & Gratuity, Contractor or Principal Employer?
Also please let me know can we bifricate the minimum wage? like Basic, HRA & other allownces conv. etc.?
Waiting for your reply members.

From India
The Contract Labour Act is an act to regulate and abolish the employment of contract labour. Hence the Act is Contract Labour (Regulation and Abolition)Act, 1970. Under this Act, the obligation for payment of wages, bonus etc to the contracted employees falls with the contractor only. But the principal employer has to ensure that every thing as per different Acts are paid to the contract employees working under him. Similarly, the contractor himself is responsible for arranging rest rooms, canteens, first aid facility etc to his employees. However, if the contractor fails to pay wages or provides the facilities as required under the Act, the principal employer has to make payment or provide such facilities. This amount he spent can be recovered from the contractor from the bill amount he has to pay the contractor.

Regarding the minimum wages, the Govt has fixed minimum rates of wages as minimum basic rate + DA (variable according to changes in the cost of living) Any amount you pay as conveyance etc will be in addition to the basic + Variable DA.



From India, Kannur
The principal employer shall be binding for all the welfare and labor measures towards the labor as per the legislations and at the same time the contractor is liable to face penalty and legal consequences for any failure to follow the legislative measures.
In an MNC at bangalore, cases have been registered by the factory inspectorate for not paying the OT amount to the contract labor.
it was seen that the employer has paid to the contractor, but the camount has not reached the labor.
here, the labor commisioner has clearly stated that it is the responsibility of prime employer to ensure that the OT amount reaches the labor within prescribed time along with the wages of that month

From India, Bangalore
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