Consultant payment by stop cheque and terminate the candidate

Hello,

We have provide staffing service to client and agreement made before it. Payment terms 3 weeks but client always make excuses in making payment after 84 days he terminated candidate that candidate was misusing and cheating company in working with freelancer with other company, download movie etc.

He provide us cheque on 75th day
But the date on cheque is 30th march and terminate candidate on 26th March. He make the stop payment and denied to make payment now.

This is a commercial dispute, you can do little about it as such.
You should chose not to do work with such a client or include the interest cost and working capital in your quote.

For the specific problem, it depends on your contract with them. If he has given you a cheque and then made a stop payment, in the absence of a dispute with you, it is a criminal offence under sec. 138 of Negotiable instruments act. You can file a FIR and take up the matter.

If you do not want to do that, the other thing is not to pay the worker and let him file a compliant before the labour commissioner. The Principal Employer is ultimately responsible for payment of wages and statutory dues and he will be pulled up.

However, since the primary responsibility is of the direct employer (your self), this approach has a risk for you also. I suggest you consult a lawyer before taking either step