Can the Company availing services from a Contractor for supply of man power - claim damages from the contractor for supply of less man power.
Want to understand the Law on this so that appropriate clause be inserted in the Agreement for Man Power Supply.
Does the below clause help
Under this Agreement “time is of the essence” for providing the Services as specified by the Company from time to time. The Contractor hereby agrees and acknowledges that if, the Contractor fails to supply the requisite number of Workmen competent to provide the Services within 24 hours then the Company will suffer immeasurable inconvenience which may or may not lead to substantial financial damages, irreparable injury and loss of reputation, due to non-completion business transactions in hand. The Contractor hereby undertakes to be indemnified and to compensate the Company for any such losses, damages and injuries to the extent and equivalent to financial damages suffered by the Company.
From India, Mumbai
1Want to understand the Law on this so that appropriate clause be inserted in the Agreement for Man Power Supply.
Does the below clause help
Under this Agreement “time is of the essence” for providing the Services as specified by the Company from time to time. The Contractor hereby agrees and acknowledges that if, the Contractor fails to supply the requisite number of Workmen competent to provide the Services within 24 hours then the Company will suffer immeasurable inconvenience which may or may not lead to substantial financial damages, irreparable injury and loss of reputation, due to non-completion business transactions in hand. The Contractor hereby undertakes to be indemnified and to compensate the Company for any such losses, damages and injuries to the extent and equivalent to financial damages suffered by the Company.
From India, Mumbai
The torts under any agreement should be genuine. the manpower agency is liable to supply manpower, but for short supply of manpower, when you impose a punishment like damages, it should be genuine. He will be able to supply manpower provided that you are ready to pay the cost as per the market. If the terms and conditions also state that the employer will take any manpower that the manpower supplier is supplying, and the employer is ready to hire or take him at any cost/ wages that the worker is demanding then there is a sense in demanding damages. In other forms of contract the nature/ attribute/ colour/ quality is uniform from the manufacturer's side itself, but in manpower supply, it will change according to nature or habits of people. therefore, it is difficult to enforce the provision relating to damages.
From India, Kannur
From India, Kannur
I think the agreement is stupid and the contractor will be foolish (or desperate) to accept it.
First, insisting that increased manpower must be available in 24 hours is unrealistic, unless the work is very generic and there is a lot of unemployment in the locality. Even then, getting people so quickly and also vetting them is impossible in most cases.
To be liable to pay for not providing the manpower, that too, the loss of the company, is very stupid also. Manpower probably accounts for 10% of the cost and therefore the contractor will be liable for 10 times of the wages (or more) in case he cant give the manpower in time.
What happens if people leave or refuse to join on account of lower salary, bad behaviour of managers, overwork, lack of safety, etc?
If the contractor is signing it, either he didnt understand it (not being a legal man) or he doesn't care as he knows the company has no way to enforce it (no assets, no way to enforce a court decree, etc)
From India, Mumbai
First, insisting that increased manpower must be available in 24 hours is unrealistic, unless the work is very generic and there is a lot of unemployment in the locality. Even then, getting people so quickly and also vetting them is impossible in most cases.
To be liable to pay for not providing the manpower, that too, the loss of the company, is very stupid also. Manpower probably accounts for 10% of the cost and therefore the contractor will be liable for 10 times of the wages (or more) in case he cant give the manpower in time.
What happens if people leave or refuse to join on account of lower salary, bad behaviour of managers, overwork, lack of safety, etc?
If the contractor is signing it, either he didnt understand it (not being a legal man) or he doesn't care as he knows the company has no way to enforce it (no assets, no way to enforce a court decree, etc)
From India, Mumbai
Dear Member,
The senior member of this forum, Mr Madhu TK, has provided a logical reply and raised several valid points. My additional observations are as follows:
a) All contracts in India fall within the purview of the 𝗜𝗻𝗱𝗶𝗮𝗻 𝗖𝗼𝗻𝘁𝗿𝗮𝗰𝘁𝘀 𝗔𝗰𝘁 𝗼𝗳 𝟭𝟴𝟳𝟮. Once the contract is signed by the buyer and the contractor, the terms and conditions mentioned in the contract are binding on both parties.
b) The condition to provide manpower within 24 hours of the requisition being placed is too harsh. Whether the manpower contractor agrees to it remains to be seen.
c) The penultimate line from the bottom of the post mentions: The Contractor hereby undertakes to be indemnified and to compensate the Company for any such... Instead of "The Contractor hereby undertakes to be indemnified and compensate the Company for," you can simplify and write "The Contractor hereby 𝗮𝗴𝗿𝗲𝗲𝘀 to compensate the Company for..."
d) The last two lines of the second paragraph mention: 𝘛𝘩𝘦 𝘊𝘰𝘯𝘵𝘳𝘢𝘤𝘵𝘰𝘳 𝘩𝘦𝘳𝘦𝘣𝘺 𝘶𝘯𝘥𝘦𝘳𝘵𝘢𝘬𝘦𝘴 𝘵𝘰 𝘣𝘦 𝘪𝘯𝘥𝘦𝘮𝘯𝘪𝘧𝘪𝘦𝘥 𝘢𝘯𝘥 𝘵𝘰 𝘤𝘰𝘮𝘱𝘦𝘯𝘴𝘢𝘵𝘦 𝘵𝘩𝘦 𝘊𝘰𝘮𝘱𝘢𝘯𝘺 𝘧𝘰𝘳 𝘢𝘯𝘺 𝘴𝘶𝘤𝘩 𝘭𝘰𝘴𝘴𝘦𝘴, 𝘥𝘢𝘮𝘢𝘨𝘦𝘴, 𝘢𝘯𝘥 𝘪𝘯𝘫𝘶𝘳𝘪𝘦𝘴 𝘵𝘰 𝘵𝘩𝘦 𝘦𝘹𝘵𝘦𝘯𝘵 𝘢𝘯𝘥 𝘦𝘲𝘶𝘪𝘷𝘢𝘭𝘦𝘯𝘵 𝘵𝘰 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘥𝘢𝘮𝘢𝘨𝘦𝘴 𝘴𝘶𝘧𝘧𝘦𝘳𝘦𝘥 𝘣𝘺 𝘵𝘩𝘦 𝘊𝘰𝘮𝘱𝘢𝘯𝘺. However, how the losses, damages, or injuries will be calculated, and what percentage of it will be recovered from the contractor has not been mentioned. Even the contractor's workers have designations. You can specify what recovery will be made if a worker of a particular designation is not supplied.
e) The second paragraph mentions: 𝘸𝘪𝘭𝘭 𝘴𝘶𝘧𝘧𝘦𝘳 𝘪𝘮𝘮𝘦𝘢𝘴𝘶𝘳𝘢𝘣𝘭𝘦 𝘪𝘯𝘤𝘰𝘯𝘷𝘦𝘯𝘪𝘦𝘯𝘤𝘦 𝘸𝘩𝘪𝘤𝘩 𝘮𝘢𝘺 𝘰𝘳 𝘮𝘢𝘺 𝘯𝘰𝘵 𝘭𝘦𝘢𝘥 𝘵𝘰 𝘴𝘶𝘣𝘴𝘵𝘢𝘯𝘵𝘪𝘢𝘭 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘥𝘢𝘮𝘢𝘨𝘦𝘴, 𝘪𝘳𝘳𝘦𝘱𝘢𝘳𝘢𝘣𝘭𝘦 𝘪𝘯𝘫𝘶𝘳𝘺, 𝘢𝘯𝘥 𝘭𝘰𝘴𝘴 𝘰𝘧 𝘳𝘦𝘱𝘶𝘵𝘢𝘵𝘪𝘰𝘯, 𝘥𝘶𝘦 𝘵𝘰 𝘯𝘰𝘯-𝘤𝘰𝘮𝘱𝘭𝘦𝘵𝘪𝘰𝘯 𝘰𝘧 𝘣𝘶𝘴𝘪𝘯𝘦𝘴𝘴 𝘵𝘳𝘢𝘯𝘴𝘢𝘤𝘵𝘪𝘰𝘯𝘴 𝘪𝘯 𝘩𝘢𝘯𝘥. The words and phrases imply that the nature of the job done by the contract workers is sensitive. If the non-availability of manpower could cause substantial damages, irreparable injury, and loss of reputation, then why has the company approached the manpower contractor? Should they not keep the employees on their roll?
Thanks,
𝘿𝙞𝙣𝙚𝙨𝙝 𝘿𝙞𝙫𝙚𝙠𝙖𝙧
From India, Bangalore
The senior member of this forum, Mr Madhu TK, has provided a logical reply and raised several valid points. My additional observations are as follows:
a) All contracts in India fall within the purview of the 𝗜𝗻𝗱𝗶𝗮𝗻 𝗖𝗼𝗻𝘁𝗿𝗮𝗰𝘁𝘀 𝗔𝗰𝘁 𝗼𝗳 𝟭𝟴𝟳𝟮. Once the contract is signed by the buyer and the contractor, the terms and conditions mentioned in the contract are binding on both parties.
b) The condition to provide manpower within 24 hours of the requisition being placed is too harsh. Whether the manpower contractor agrees to it remains to be seen.
c) The penultimate line from the bottom of the post mentions: The Contractor hereby undertakes to be indemnified and to compensate the Company for any such... Instead of "The Contractor hereby undertakes to be indemnified and compensate the Company for," you can simplify and write "The Contractor hereby 𝗮𝗴𝗿𝗲𝗲𝘀 to compensate the Company for..."
d) The last two lines of the second paragraph mention: 𝘛𝘩𝘦 𝘊𝘰𝘯𝘵𝘳𝘢𝘤𝘵𝘰𝘳 𝘩𝘦𝘳𝘦𝘣𝘺 𝘶𝘯𝘥𝘦𝘳𝘵𝘢𝘬𝘦𝘴 𝘵𝘰 𝘣𝘦 𝘪𝘯𝘥𝘦𝘮𝘯𝘪𝘧𝘪𝘦𝘥 𝘢𝘯𝘥 𝘵𝘰 𝘤𝘰𝘮𝘱𝘦𝘯𝘴𝘢𝘵𝘦 𝘵𝘩𝘦 𝘊𝘰𝘮𝘱𝘢𝘯𝘺 𝘧𝘰𝘳 𝘢𝘯𝘺 𝘴𝘶𝘤𝘩 𝘭𝘰𝘴𝘴𝘦𝘴, 𝘥𝘢𝘮𝘢𝘨𝘦𝘴, 𝘢𝘯𝘥 𝘪𝘯𝘫𝘶𝘳𝘪𝘦𝘴 𝘵𝘰 𝘵𝘩𝘦 𝘦𝘹𝘵𝘦𝘯𝘵 𝘢𝘯𝘥 𝘦𝘲𝘶𝘪𝘷𝘢𝘭𝘦𝘯𝘵 𝘵𝘰 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘥𝘢𝘮𝘢𝘨𝘦𝘴 𝘴𝘶𝘧𝘧𝘦𝘳𝘦𝘥 𝘣𝘺 𝘵𝘩𝘦 𝘊𝘰𝘮𝘱𝘢𝘯𝘺. However, how the losses, damages, or injuries will be calculated, and what percentage of it will be recovered from the contractor has not been mentioned. Even the contractor's workers have designations. You can specify what recovery will be made if a worker of a particular designation is not supplied.
e) The second paragraph mentions: 𝘸𝘪𝘭𝘭 𝘴𝘶𝘧𝘧𝘦𝘳 𝘪𝘮𝘮𝘦𝘢𝘴𝘶𝘳𝘢𝘣𝘭𝘦 𝘪𝘯𝘤𝘰𝘯𝘷𝘦𝘯𝘪𝘦𝘯𝘤𝘦 𝘸𝘩𝘪𝘤𝘩 𝘮𝘢𝘺 𝘰𝘳 𝘮𝘢𝘺 𝘯𝘰𝘵 𝘭𝘦𝘢𝘥 𝘵𝘰 𝘴𝘶𝘣𝘴𝘵𝘢𝘯𝘵𝘪𝘢𝘭 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘥𝘢𝘮𝘢𝘨𝘦𝘴, 𝘪𝘳𝘳𝘦𝘱𝘢𝘳𝘢𝘣𝘭𝘦 𝘪𝘯𝘫𝘶𝘳𝘺, 𝘢𝘯𝘥 𝘭𝘰𝘴𝘴 𝘰𝘧 𝘳𝘦𝘱𝘶𝘵𝘢𝘵𝘪𝘰𝘯, 𝘥𝘶𝘦 𝘵𝘰 𝘯𝘰𝘯-𝘤𝘰𝘮𝘱𝘭𝘦𝘵𝘪𝘰𝘯 𝘰𝘧 𝘣𝘶𝘴𝘪𝘯𝘦𝘴𝘴 𝘵𝘳𝘢𝘯𝘴𝘢𝘤𝘵𝘪𝘰𝘯𝘴 𝘪𝘯 𝘩𝘢𝘯𝘥. The words and phrases imply that the nature of the job done by the contract workers is sensitive. If the non-availability of manpower could cause substantial damages, irreparable injury, and loss of reputation, then why has the company approached the manpower contractor? Should they not keep the employees on their roll?
Thanks,
𝘿𝙞𝙣𝙚𝙨𝙝 𝘿𝙞𝙫𝙚𝙠𝙖𝙧
From India, Bangalore
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