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Dear sir, Contractor is quoting 1 paisa as service charge in financial bid and after getting contract, he starts exploitation of contract labour by recovering Rs 50 to 100/- day. Moreover, he threatens those labours who are not giving desired money back to the contractor. In addition to this, Contractor fulfills all statutory compliance while submitting the monthly bills i.e. EPF/ESI/Wages sheet statement shows that minimum wages has been paid to the labour.
Can we take any action against the contractor in above scenario ?

From India, undefined
Dear Mr. Tiwari,
This a classic case of exploitation of contract labor by the contractor. If there is no other issue (Political, rules etc.), please remove the contractor immediately. Set some proper norms as follows:-
1. Find out actual cost of the contractor - Minimum wage + Employer's portion of PF & ESI + some reasonable service charge + GST as applicable.
2. Reimburse the above and when Bonus, Gratuity, Leave pay etc. payable - please also reimburse the same in actual.
3. Every month cross check from contract labor if there is any exploitation or not.
As a PE it is your responsibility to protect the contract labor - forget about legally but socially.
Thanks & Regards,
S K Bandyopadhyay ( Howrah, WB)
USD HR Solutions
+91 98310 81531

From India, New Delhi
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