What Happens to Wage Settlements When a Labor Contractor Disappears Without Paying?

Wage Settlement in the Absence of a Labor Contractor

A verbal agreement between me, as a subcontractor, and my labor contractor does not disclose the wages decided and accepted by the laborers, either through agreement or any documentation. The labor contractor does provide a muster card to the laborers by recording daily attendance.

In the event that the labor contractor disappears without making labor payments, what would be the wages to settle if we decide to make the Full and Final (F&F) settlement? Is it the minimum wage of that concerned state, or whatever the laborer claims they should be paid, including overtime, etc.?

Thanks,

Manjunatha

I do not know why you are having such an agreement and why you were willing to take such a risk. What happens if he is not being paid minimum wages? Are you aware that you will have to pay the same along with a penalty?

In the event of the contract vanishing without making the requisite wage payments, you will have to make the same. You will have to make the payment with what you were otherwise getting from the contractor. Since the contract is not there, you will have to pay whatever work claims he was getting.