Can Employers Take Action Against Contract Workers? Understanding Standing Orders

Dear Sender,

Yes, the principal employer can take appropriate action against contractors' employees.

LK

Subject: Inquiry regarding Applicability of Standing Orders to Contract Workers

Dear Sir/Madam,

I am writing to inquire whether the Standing Orders of a Company are applicable to the Contract workers working under their respective Contractor. Can the Principal Employer take action against any misconduct committed by the Contract Workers?

Thank you for your attention to this matter.

Regards,
Vikram Singh
9810102421
vikramlamhe@sify.com

No, the Principal Employer can't do this. He can only notify the contractor, who will then take the required actions.

Consider a situation where the Principal Employer says to the contract employee, "Get out of my company, you are fired!"

And the contract employee replies, "Who are you to fire me? I'm not even on your payroll; you don't even pay me."

Dear Sender,

It is understood that the principal employer cannot fire the contractor's employees directly. However, it implies that the ultimate responsibilities are vested with the principal employer, and he can implement actions through the contractor against the employee.

Regards,

L. Kumar

Hi,

We should not initiate disciplinary action against the contract employees as it would be construed as the Principal Employer having supervision and control over the contract workmen. If we exercise supervision and control over the contract employees, we will indirectly confer the status of regular employees on them. There are a number of High Court and Apex court judgments reiterating the issue of "Supervision and Control" in determining the status of their employment.

Hence, it is better not to initiate disciplinary action against the contract employees directly. In case of necessity, the same may be initiated by the respective contractor. Please revert if any clarifications are required.

Thanks & Regards,

Kalyan R
Manager - Personnel
Sundaram-Clayton Ltd
Brakes Division
Chennai
Mobile: 9840942232

Hi Mr. Kalyan,

I agree that Standing Orders are legally applicable. However, there is no need to complicate things. I suggest contacting the contractor and informing them that this worker will not be required from the following day.

Siva