Contractor Responsibilities in Court Disputes: Why Are We Paying Them as Principal Employers?

Respected All,

Kindly advise about contractor responsibilities in disputed cases (court matter). Being a principal employer, we are responsible. Then, what about the contractor? Why are we paying them?

Please, we need your guidance and advice.

One of our employees (argon welder), who is on a contractor's payroll, has filed a case in the labor court for a lower increment compared to his colleague, who is more efficient than the complainant. The contractor has generated a bill for legal expenditures (including lawyer fees). We are paying service charges (as per the agreement) every month to the contractor while they are generating the salary bill.

So, who is responsible for paying the legal expenses to the lawyer?

If contract workmen are not directly controlled by the principal employer, only in that case can you keep yourself away from such litigation. Otherwise, you need to defend such cases with all your resources, including financial support.