Employer Contributions and Deductions Under Section 40
Under Section 40, the principal employer shall pay, in respect of every employee, whether directly employed by him or through an immediate employer, both the employer's contribution and the employee's contribution.
Notwithstanding anything contained in any other enactment but subject to the provisions of this Act and the regulations, if any, made thereunder, the principal employer shall, in the case of an employee directly employed by him (not being an exempted employee), be entitled to recover from the employee the employee's contribution by deduction from his wages and not otherwise:
PROVIDED that no such deduction shall be made from any wages other than those relating to the period or part of the period in respect of which the contribution is payable, or in excess of the sum representing the employee's contribution for the period.
Notwithstanding any contract to the contrary, neither the principal employer nor the immediate employer shall be entitled to deduct the employer's contribution from any wages payable to an employee or otherwise to recover it from him.
Any sum deducted by the principal employer from wages under this Act shall be deemed to have been entrusted to him by the employee for the purpose of paying the contribution in respect of which it was deducted.
The principal employer shall bear the expenses of remitting the contributions to the Corporation.
Recovery of Contributions Under Section 41
Under Section 41, a principal employer who has paid the contribution in respect of an employee employed by or through an immediate employer shall be entitled to recover the amount of the contribution so paid (that is to say, the employer's contribution as well as the employee's contribution, if any) from the immediate employer, either by deduction from any amount payable to him by the principal employer under any contract or as a debt payable by the immediate employer. The immediate employer shall maintain a register of employees employed by or through him as provided in the regulations and submit the same to the principal employer before the settlement of any amount payable under this clause. In the case referred to in subsection (1), the immediate employer shall be entitled to recover the employee's contribution from the employee employed by or through him by deduction from wages and not otherwise, subject to the conditions specified in the proviso to subsection (2) of Section 40.