Who Handles 'Form D' for Contract Workers: Is It the Company's Responsibility or the Contractor's?

My company had filed 'Form D' for company workers, and the HR manager says that the contractor has to file/submit 'Form D' for contract workers, and the company is not liable. The company pays bonuses to contractors, which the contractors then pay to their workers, so the company is paying indirectly.

Liability for Contractor's Failure to Submit 'Form D'

What if the contractor fails to submit the 'Form D'? Is the company liable to file it itself in this case or just ensure that the contractor has filed? What if the contractor fails to file 'Form D' as well as the penalty for that? Consider that most contractors are not older than 5 years.

Kindly give me an answer for this ASAP. Thanks in advance.

Dear Ano...

The employer, i.e., the contractor, should file Form D. As a principal employer, your company shall ensure compliance.

Shailesh Parikh
99 98 97 10 65
Vadodara

Yes, that is clear. But what if the contractor has not filed? As a principal employer, do we have any penalty upon us?

As per the Payment of Bonus Act 1965, the principal employer owes no responsibility for compliance with the Act by the contractor. It is only the contractor who can be held responsible under the Act. However, from an industrial relations (IR) point of view, the principal employer takes an active interest in ensuring due compliance by the contractor.