Contractor Passed Away: How Should We Handle Payments to His Nominee?

We have a labor contractor and are running a contract in his name (as a proprietor) with 400 laborers. The contractor has passed away. What should we do regarding the monthly payment against his bills? Can we pay his nominee? The nominee was not decided before his passing.

First and foremost, pay wages and make statutory remittances on behalf of the contractor. You can decide the payment of the remaining amount later on.

Dear Friend,

Since the contractor has passed away, firstly, pay the workmen their dues and then the statutory dues. Locate the family and determine if he has a surviving wife, daughter, or son. Engage with them to appoint a nominee based on the situation.

Please refrain from awarding such significant contracts to individuals; preference should be given to a company or partnership firm. This decision will help you avoid many complications. The new contractor can also employ these workmen.

Warm Regards,
Bharat Gera
HR Consultant