Can Contract Workers Challenge Their Regularization Raise if Paid Directly by Employer?

Can contract workmen dispute a raise for their regularization on the grounds that the principal employer is paying the award amount (for good performance) directly to the contract workmen?

Regards,
RANJAN DIXIT

Incentives and Contractual Agreements

Paying good service awards or attendance bonuses as incentives to contract workers directly by the principal employer can become harmful to him because these actions by the principal employer can lead to the contract becoming a sham. However, at the same time, if the contractor pays a performance bonus, which is then reimbursed by the principal employer, it may be considered genuine. Moreover, any direct payments by the principal employer or interference by the principal employer in wage negotiations for contract workers could also render the contract as a sham. Once the contract is proven to be a sham, the workers can claim regularization.

Regards,
Madhu.T.K

He cannot or is not expected to pay anything out of affection or love. Therefore, whatever payment is made directly to contract workers will create an employer-employee relationship only.

Regards,
Madhu.T.K

Instead of giving it directly, you can pay it to the contractor (yes, including the contractor's "interest" because he is also a part of that) and monitor the completion to ensure that he will pay the concerned contract employee.