if a contract labour file a case against company then what should cmpnay do please suggest

Dear all
Company will terminate a contract labour because of his bad behavior and long absenteeism after that contract labour will file a case against company then what should company do ,
please suggest
Thanks

Did the company have direct contract with the worker or was it through labour contractor?
What procedure did you follow for termination?
what were the terms of contract?

it is through contractor.
we will send letter to contractor of termination of employee.

Probably all you have to do is tell the contractor to replace the worker.
Why was his indiscipline tolerated for so long?
The worker has employer employee relationship with his contractor only.
You are not his direct employer but Principle employer.

contractor already replace the worker.
and the labour deptt says that you have to submit the report and you have attend all the leagle hiring,
but now what should we do for not have any truble in future.
please suggest me now what should do in this condition.
thanks
rajender

You need to deny strongly employer-employee relationship. You should plead that you are not a necessary party to the dispute while it is only the contractor who can and has to answer the question of termination. Is the contractor a party to the proceedings? Is there a pleading that the contract is a sham arrangement?
You have to join hands with the contractor to take out documentary proof to show that the labour was employed by the contractor, paid regularly by the contractor, contractor has labour license, you are registered under CLRA Act, provisions Like PF/ESI for the labour are complied by the contractor, and shall produce the copy of work order/service agreement with the contractor etc.
It is high time you have to avail services of a Labour Law expert.

You need to provide the forum with complete details of circumstances. It is not possible to give an advice on a vague description without knowing how the contract worker was employed, interactions, what work he was doing and what documents he has to prove he worked for you.
If he has complained to the labour department, you need to attend the hearings and explain to the labour officer that you were not the employer and that the contractor has employed him, etc.

Dear Madam
I already explain to labour deptt that we r not the employer they reply that u r the principle employer and u have the liability to attend the hiring and give the evidence of entire process.

Dear Dayma,
The terminated employee would have impleaded you as a party to the dispute since you happened to be the principal employer. Therefore, procedurally it is correct on the part of the Labor Officer to send notice to you also. Without knowing the terminated contract workman's actual averments in his complaint to the Labor Officer or whether the contractor just orally stopped him or formally terminated him on the ground of any indiscipline, one can not suggest any specific reply to be submitted. However, you have to file a reply and it may generally state that as principal employer you are not concerned with the appointment or termination of any particular individual as contract labor and as such if at all any remedy is sought by the petitioner/workman regarding his termination/non-employment, it can be only from the contractor who employed him and request the Labor Officer to drop all further action as regards the principal employer on the ground of misjoinder of party.
However, if there is any specific allegation about the contract being a sham one and the workman demands remedy from you, then the L.O has to initiate conciliation and issue a certificate to the effect that conciliation ended in failure. Then you have to prove your stand before the Labor Court only. This is the legal impact of the so-called " Umbrella Contract " ( that is, same PE, same contract labour but change of contractors every year or so )adopted by most of the principal employers for the sake of flexibility of hire and fire as well as cost-cutting.

The person was engaged through a contractor. The Principal Employer cannot and should not have any direct control over the said contract worker. If there is a behavioural issue with any contract workman, the Principal Employer should talk to the Contractor and advice him to remove him from his rolls / stop him. If the contract workman files a case against the company, then the PE can very well defend the case saying that he was only a contract workman and not a direct workman. However, it is to be noted that there should be a perfect contract between the PE and the Contractor, the PE should have the RC and the Contractor should have the Licence, there is no loophole in the contract, the contract workman do not have / possess any evidence to say that he is a direct employee of the PE and last but not the least, the contract workman was not engaged in a perennial nature of job for which he has some evidence with him. In such case, it is very difficult to defend the case by the PE.
If the contract is not a sham contract and is a genuine contract and the person is engaged as per the RC and licence, then even if the person works for 10 years, there should not be any problem unless, the appropriate authority abolishes the contract system in the particular industry.
Ranganathan RS