I agree with Mr. Pradeep that many contractors are doing the same thing. There are PEs also who are also not paying to contractors on time.
To my opinion PE cannot escape the responsibility even after some case laws are in favor of PE as the contract employees are engaged at PE's premises. Ultimately it is the human factor (contract employees) who will suffer.
Here lies the question of contractors value system and ethics of doing business, There are few organized contractors - Randstad, Genius, Team Lease etc.etc. who are providing reasonable services to big clients. Obviously small or medium business house are relying on other contractors where is actually lying the most of the problem.
To my opinion first thing first is to select ethical contractors considering past credibility and compliance status etc.
USD HR Solutions, our organization is doing same job for last 12 years and not a single month we have failed to pay salary to employees on time and no compliance deviation. We have about 180 employees in our pay roll. There are contractors are available in every location but one has to find out the same before selection.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
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