Who Should Pay Leave Wages for Contract Labor When the Tender Is Silent?

Leave wages in tender agreements

Leave wages, if not provided by the principal employer in the tender, are often expected to be paid by the contractor. In the tender, there is no provision for leave or leave wages, but it is stated that all labor laws must be followed. Additionally, the contractor is working on the rates provided, excluding profit. If the tender does not mention leave wages or leave, on what basis can the principal employer be required to provide leave wages? As far as I know, both the principal employer and the contractor must adhere to the law. Please help clarify whether the contractor should be responsible for paying leave wages or not.

As an employer, it is your duty to follow all specified labor laws that are applicable to you. Also, if you, as an employer, are not following the rules, then the principal employer is liable to pay or follow the labor law that is applicable to the employees and employer. In many cases where contract labor is involved, the contractor charges leave amounts separately to the principal employer.

Initially, any compliance officer will look into the records of the Labor Contractor and then shall investigate the liability of the Principal Employer. As the principal is not willing to pay leave wages and the rates are not feasible for profit, suggest discussing the matter with the employer and coming to a decision.