Navigating the Process After a Labor Contractor's Passing: How to Inform Officials and Appoint a New Contractor

Procedure for Informing Labor Officer and Appointing a New Contractor

Our organization's lone labor contractor passed away due to sudden ill health recently. What procedure should be adopted to inform the labor officer in the concerned area? Should I fill out Form VI B? Is that form typically used for work completion certificates, or is there another procedure to be followed?

We need to issue Form V to appoint a new contractor to replace the previous one, as there are approximately 70 contract laborers working under him for gardening, cleaning, loading, and unloading purposes.

Your prompt response would be greatly appreciated as it will help us take necessary actions.

With regards,

Legal Notice and Contract Termination

You need to issue a legal notice to the company or the heirs of the contractor, terminating the contract with whatever reasons are correct under your agreement with the contractor (I assume you have an agreement). Once the legal formalities of the termination of the contract are over, you can file a Form VI B.

In the meanwhile, you need to find another contractor to take over the contract.

Potential Issues with Contractor Replacement

The way you are approaching it is going to be a problem. If you just replace the contractor and keep all the employees, it is going to be clear that the contract is a sham designed solely to deny fair wages, benefits, and statutory dues to the contract workers. That can be a ground for any case a worker decides to file later.

Appointing a New Contractor

What you need to do is to appoint another contractor immediately (with all legal formalities that are required) and let him get workers as he pleases. If he decides to keep all of the existing workers or some of them, that would be his choice. If you are dictating that he take over the workforce and become the contractor in place of the previous one, it will be clear that the contract workers are actually your own workers placed on someone else's payroll to avoid liability.