Salary/wages Disbursement - CiteHR
Executive - Administration.
Pavan Kumar B
Asst. Manager Hr Compliance
+2 Others

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"contractor has submitted montly bills and delay in process from principal employer side for making payment / cheque to the contractor. In that case if contractor not paying wages/monthly salary to their emplyees on time or in 1st week / before 7th of the next month"
what should we do as a principal employer ?

The principal employer has to give the advance to the contractor to pay the salary. The same will be adjusted in the payment bill.

If he is a large contractor then he would rotate the fund by adjusting some how to manage the salary but if the contractor is doing only for little client then it would be a problem for them to disburse the salary.

Contractor make profit mainly by the service tax only since today every company agrees to pay only the minimum wages for the position and also they are very keen on PF and ESI where the principal employer is responsible also earlier days some of the contractors made money by not paying correct ESI / PF for the contract employees. so only today PF / ESI dept is very strict on the contribution and also ensure principal employer is also liable/responsible for the payment of wages, ESI / PF contribution to the employees of contract labors.

So as a principal employer you have to credit the monthly amount to the contractor so taht he disburse the salary to his employees without any problem or delay.

thank you for the reply. to give advance is a good suggestion but as non compliance of payment in 1st week of the month - who is primary responsible, prinicpal employer / contractor ?
Non compliance is because the contractor is not paid on time. If the principal employer has paid on time and if the contractor has not given the salary then you can take action against the contractor.
But here it is purely the mistake of principal employer who has to take the blame and solve the issue and support the contractor to disburse the salary to their employees.

Hi what are the revise minimum wage of Karnataka.(Regarding to September 2011 middle revise and 2011 to 2012)
Dear All,
Principal employer is Responsible for Delay in wages disbursment of contract labour.
& for that verious copmanies is formed policy of Security diposit of Contractor for any kind of non complience / libelity.
so it is the better option for timely disbursement of contract labour wages.

This is perfectly alright. However such contract when agreed mutually are not binding on principal employed to make timely payment to contractor.
In such cases, contractor is liable for pay the dues to his worker.
S K Priyadarshi

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