Electrical Contractor's Dilemma: How Can We Legally Address Labor Theft and Payment Withholding?

Hi experts. My dad is an electrical contractor. Two of his laborers robbed a small part of a cable in the company where they were employed. The entire cable was worth 8 lakh rupees. Now, the company is withholding our payment and demanding that we repay the amount.

What's the best legal solution for us to release our payment and take action against the laborers?

I really need your advice to help my dad. Please share your valuable suggestions.

Legal implications of employee theft

The items are two separate things and cannot be linked together for legal action. The company is definitely right in holding your bill as you have stolen their material (note, the action of your employee is as your agent and therefore, legally, they can say your company stole their material. This is a civil matter, not criminal. In a criminal matter, you are not liable for the theft done by someone else.)

Steps to address the situation

You need to file a police complaint against the employees and have them arrested and try to recover the money or material from them. If they sold the cable, then you can ask the police to include the buyer in the investigation as buying stolen equipment is a crime too. You can get the balance amount from them.

Options for dealing with the company

As for the company, you need to pay them and get your money back. Alternatively, appeal to them and offer to pay the money back in parts if you are doing more work for them. Or ask them to deduct the amount and pay the balance.

I have a different take on this issue. FIR should be lodged by the owner of the premises/owner of the company where the outsourced staff is deployed. It is for the police to recover the stolen item. Salary dues cannot be withheld by them as they are responsible for salary payment as per Section 21 of the CLRA Act, 1970.

Regards, Col. Rathi