What are the recourses available to a Principle Employer if the Contractor has availed the bonus amount from PE and not made the payment to the contract workers? The PE has repaid the amount to the contract workers and now would like to proceed against the Contractor for their non-compliance
From India, Bengaluru
Hr Manager
Ceo-usd Hr Solutions
Pan Singh Dangwal
Joint Manager
Labour Law Advisor And Legal Consultant

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I hope you have enough documents to prove that Contractor has been received the Bonus amount from PE but did not paid to contract workers.

First action is to find out one good contractor and remove the existing contractor. Issue one letter to contractor with a copy to local police station as it is a case of fraud. Consult one good advocate (criminal ) as the offence is in criminal nature.

S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531

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From India, New Delhi

Before proceeding legal action as advised by our learned member, you may recover the bonus amount paid to contractor, from his next bill towards service charges l and then proceed with the case.
From India, Aizawl

You have to change your contractor and recover the amount paid in lieu of Bonus from the contractor as this is a civil commercial dispute so contact an Advocate for sending a Legal Notice and proceed further by filing a Recovery of Money Case.
From India, New Delhi

Please recover the amount from his bills and meantime find a suitable contractor. After recovering total amount immediately terminate the contract as per the contract labour act. Take the labourers in your confidence so that your work may not hamper. New contractor will employ the workers as fresh
From India, Jalandhar

It is common mistake done by many Principal Employers that they are passing bill of the contractor as per the rates quoted in tender which includes amount of Bonus and Gratuity. Actually the wages, Bonus and Gratuity is to be first paid by the contractor and then to be reimbursed by the Principal Employer on the production of proof of payment of wages, Bonus and Gratuity to the workers. Now the amount has already been paid, PE is having option of recovering the same from the bills of the contractor and security deposit and Bank Guarantee etc by giving show cause notice. The Principal employer's liability to pay wages is recognised under Section 21(4) of the Contract Labour (R & A) Act, 1970. If the contractor fails to pay wages, the Principal employer will be bound to pay the same. The wages due to the workmen does not include Bonus and Gratuity. The definition of term wages under C L (R &A) Act and Payment of wages is same While defining term wages under Payment of Wages Act, the Bonus and Gratuity is specifically excluded. The Principle Employer therefore liable to pay wages and nothing more. Case Law Cominco Binani Zink Ltd vs Pappachan 1989 Kerala HC.
From India, Pune
Pan Singh Dangwal

Rightly said by Mr. Ssushr.

In most establishments vendor hiring is done on basis of L1 (Lowest 01) or as per company purchase policy in which various components are considered on different basis (Existing MW, Statutory Compliance, projected extra work, project Wage hike, Bonus, Leaves etc.). But while processing the bills the supporting docs are not checked properly.

As per standard norms first contractor has to make compliance and attach all relevant supporting docs with the bills.

Even if rates are fixed, still we have to check the detailed PO/WO & Quotation. Whatever components have been considered in the rates, same must be complied by the contractor.

Non regular bills like Bonus, Gratuity, EL Pymt etc. should be processed on basis of disbursed docs.

Hope my points are cleared.

From India, Delhi
Thankyou all for the responses!
From India, Bengaluru

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