Responsibility of Principal employer with wages of Out-Worker

Greetings to all seniors!!

I have one query regarding responsibility of a Principal employer with respect to Wages & Statutory compliance of workmen deployed in production or process , if contractor is not directly working inside the premises which is in direct control of PE.

It is the responsibility of the Principal employer to ensure that the workers who are engaged by the contractor for getting the things done for the principal employer are paid in time and their PF, ESI and other statutory payments are paid by the contractor. This applies even if the workers are deployed outside the factory premises but are working in the premises of the contractor.

The responsibility of a Principal employer is to ensure timely payment of Wages by the contractor, as well to see that Statutory compliances are being complied.
Further, it is the liability of the PE to comply everything,if the contractor is failed.
As per CLR&A Act the workmen can not be deployed in production or process of continuous nature, if contractor is engaged is said to be sham contract.