Seeking Advice on Handling Employment Disputes
I run an HR company. A few months back, I sought help from an individual who promised to provide manpower. I did not provide any employment-related paperwork as I only required his assistance for one month due to a heavy workload. Despite never visiting the office, he did visit a few sites. I paid him Rs. 15,000 in advance by cheque and then an additional Rs. 8,500 later by cheque. Subsequently, I informed him that we no longer required his services due to his lack of responsiveness over the phone and absence from the office. Unfortunately, I lost a few contracts because of his actions.
Later on, he approached the labor inspector claiming that we had not paid him enough and that he was our employee. He is currently demanding more compensation.
Please advise me on what actions to take now and provide guidance on how to handle similar situations in the future.
Thank you.
From India, New Delhi
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I run an HR company. A few months back, I sought help from an individual who promised to provide manpower. I did not provide any employment-related paperwork as I only required his assistance for one month due to a heavy workload. Despite never visiting the office, he did visit a few sites. I paid him Rs. 15,000 in advance by cheque and then an additional Rs. 8,500 later by cheque. Subsequently, I informed him that we no longer required his services due to his lack of responsiveness over the phone and absence from the office. Unfortunately, I lost a few contracts because of his actions.
Later on, he approached the labor inspector claiming that we had not paid him enough and that he was our employee. He is currently demanding more compensation.
Please advise me on what actions to take now and provide guidance on how to handle similar situations in the future.
Thank you.
From India, New Delhi
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Payment by cheque must have an offer from his side for providing manpower that is evidenced. The labor inspector will ask for Form XXIV from him as evidence of providing manpower to your establishment, and the principal employer has to issue Form V. Without these documents, no case will stand.
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HR Manual (Employee Hand Book).doc