Anonymous
Vendor has not provided any of the documents related to monetary obligations such as Wage Register, PF ECR , Pay Slips. Will the principal employer responsible ?
From India, Mumbai
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Drsivaglobalhr
Doctor Siva Global Hr
Ram K Navaratna
Hr Consultancy

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drsivaglobalhr
293

Dear Colleague,
For your query the section 21 of the Contract Labour ( R&A) Act may be relevant in case of payment of wages for such contract arrangement. IT SAYS PRINICIPAL EMPLOYER IS RESPONSIBLE

21. Responsibility for payment of wages.—(1) A contractor shall be responsible for payment of
wages to each worker employed by him as contract labour and such wages shall be paid before the expiry of such period as may be prescribed.
(2) Every principal employer shall nominate a representative duly authorised by him to be present at the time of disbursement of wages by the contractor and it shall be the duty of such representative to certify the amounts paid as wages in such manner as may be prescribed.
(3) It shall be the duty of the contractor to ensure the disbursement of wages in the presence of the authorised representative of the principal employer.
(4) In case the contractor fails to make payment of wages within the prescribed period or makes short payment, then the principal employer shall be liable to make payment of wages in full or the unpaid balance due, as the case may be, to the contract labour employed by the contractor and recover the amount so paid from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor.

Similarly on PF / ESI and other statutory compliances there is a responsibility to the Principal Employer. For your information “EPFO launched electronic facility for principal employers to view EPF compliances of their contractors. The EPFO said registered employers engaging employees through contractors can add details of contractors and contract employees via the unified portal of the retirement fund organisation."Principal employers who are not registered yet, can register afresh and check remittances by contractors. This will help principal employers ensure that all contract employees deployed via a contractor are enrolled with EPFO and “remit EPF contribution though Electronic Challan cum Return (ECR)."

EPF ACT:

11[8A. Recovery of moneys by employers and contractors.—(1) 12[The amount of contribution
(that is to say the employer’s contribution as well as the employee’s contribution in pursuance of any Scheme and the employer’s contribution in pursuance of the Insurance Scheme)], and any charges for meeting the cost of administering the Fund paid or payable by an employer in respect of an employee employed by or through a contractor may be recovered by such employer from the contractor, either by deduction from any amount payable to the contractor, under any contract or as a debt payable by the contractor.
(2) A contractor from whom the amounts mentioned in sub-section (1) may be recovered in respect of any employee employed by or through him, may recover from such employee the employee’s contribution [under any Scheme] by deduction from the basic wages, dearness allowance and retaining allowance (if any) payable to such employee.
(3) Notwithstanding any contract to the contrary, no contractor shall be entitled to deduct the
employer’s contribution or the charges referred to in sub-section (1) from the basic wages, dearness allowance, and retaining allowance (if any) payable to an employee employ

From India, Chennai
Ram K Navaratna
233

Good explanations. Thanks Ram K Navaratna HR Resonance
From India, Bangalore

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