Dear Mr.Bijay,
You are employing the workers through your contractor, the liability of payment of compensation in case of accident and in default in payment of salary by contractor, in such case, the liability of payments will come on Principal employer only. and cost of such payment can be deducted from the contractors bill. Principal employer cannot escape from such payments in-case of default by the contractor.
As our friends are pointed out you elaborate your query in detail so that we can guide you. Unless you give clarity of your doubt we are unable to advice you suitably..
Adoni Suguresh
Sr.Executive (Pers, Admin & Ind.Rels) Rtd
Labour Laws Consultant