Is it compulsory for any contractor to pay double wages to contract employee for working on festival holidays? - CiteHR
Umakanthan53
Labour Law & Hr Consultant

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Respected Seniors, Is it compulsory for any contractor to pay double wages to contract employee for working on festival holidays?
Principle employer has 12 number of festival holidays in a year. It is insisting contractor to pay double wages on working on these days to contract employees.
But they are not ready to reimburse the same to contractor. They will pay single wages for these days to contractor. Principle employer is covered under factory act.
Please advise for resolving the issue. Contractor is ready to pay single wages.
Thanks,
Santosh

Dear Santhosh,
Extra wages for working on a festival holiday would also fall within the statutory definition of the term "wages". Section 21(4) of the CLRA Act,1970 enjoins vicarious liability for payment of wages to contract labor on the principal employer. If any contract labor is required to work on any festival or national holiday with or without the knowledge of the principal employer, they should be paid double wages or alternative holiday with wages as per their choice. If any contractor fails to do so, it is the duty of the principal to pay such wages and get it deducted from such contractor.

Dear Sir,
Here my query is how festival holidays applicable to principal employer will also be applicable to contract employees...
If the principal employer will only pay single wages to contractor for working on these festival holidays, how they can demand for double wages from contractor to contract employees.
Pl advise.

Dear Sir,
Principal employer's HR states that as contract employees also falls under the defination of workmen under section 2 of factory act, festival holidays applicable to permanent employees also should be applicable to contract employees. Is it correct?

Factory is covered under Gujarat Factory act. Is there any act related to national and festival holidays act in Gujarat?
Dear Santhosh,
Mr.Umakanthan Sir have clearly mentioned above for your clarifications - If any contractor fails to do so, it is the duty of the principal employer to pay such wages and get it deducted from such contractor.
Regards
P.Senthil
Coimbatore.

Dear friend,
What your PE's HR says is correct but the PE's stand that he would pay only single wages for the holiday work done by the contract labor is not only contrary to his own HR's statement but also to section 21 of the CLRA Act. Both the Factories Act,1948 and the CLRA Act,1970 are Central Enactments and as such they have nation-wide application. As such there is no point in further discussion on any other grounds. If you are a contractor, institute civil action against the PE; in case you are a representative of the contract labor file a claim u/s 15 of the Payment of Wages Act,1936 before the Authority under the Act against both the PE and the contractor.

Dear sir,
Thanks for your advise.

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