Hi, Our company is a Sub contractor in mining sector providing technical support. We have employees starting from uneducated to BE level, Salary levels are from 9,000 Per month to 50,000 Per month. we pay PF for all employees.
We have recently terminated 5 people from a particular mine site as the work at mine site is stopped due to High court orders. We could not give any notice to them as this happened suddenly, however we did not have any written contract or appointment letter issue to these employees.
Are we liable to give any compensation to these employees? we have paid the salary due to them for the number of days worked .
Kindly guide, We do not have any factory we only work at the project site as per customer requirement.

From India, Mumbai
It is discernible from your narration that your company provides simultaneous technical support to different mines i.e., different principal employers on contract basis. As such it can be implied that you can very well redeploy your employees among the various principal employers in the event of abrupt stoppage of work in a particular unit due to reasons beyond your control like the one cited in the post. Therefore your normal status as employer can not be altered by the adhoc deployment of the workmen as contract labour. The resultant effect is that your contractual and legal obligation of providing continuos work to them remains all the same like any other employer engaging workmen for their own work. Basically employment is a matter of contractual relationship between the employer and employee in which physical factors such as nature of activity, type of establishment, place of work etc., pale into insignificance. So, in the event of any such impasse like the present one, my personal opinion is that you have to pay them statutory retrenchment compensation and all other terminal benefits in commensurate with their length of service and last-drawn wages.
From India, Salem
Dear Sir,
Whether a Person employed by an Employer without an Appointment Written or Verbal Order is still an Employed Person on the Muster Roll of that concerned Employer as per the Laws of the Land and Business Ethics. Irrespective of the Cause resulting in the said Termination, the erstwhile Employer has Legal Liability intact and hence act according to the Spirit of Laws.
Kritarth Consulting Pvt Ltd,
IR,HR and Organization Management Consultant,
Bengaluru Base
info@kritarth.in 91 9560453 756

From India, Delhi

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