I want to know who is responsible under labor law if:
1. The Principal Employer does not release the salary bill of the contractor, resulting in contract labor not receiving wages.
2. The Principal Employer releases all dues of the contractor, but the contractor does not disburse wages.
3. The Principal Employer does not release ESIC and EPF contributions of their own share (employer), while the contractor has already deposited the employee's share.
Regards,
Nagendra
From India, Bahadurgarh
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1. The Principal Employer does not release the salary bill of the contractor, resulting in contract labor not receiving wages.
2. The Principal Employer releases all dues of the contractor, but the contractor does not disburse wages.
3. The Principal Employer does not release ESIC and EPF contributions of their own share (employer), while the contractor has already deposited the employee's share.
Regards,
Nagendra
From India, Bahadurgarh
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Responsibility for Payment of Wages
(1) A contractor shall be responsible for the payment of wages to each worker employed by him as contract labor, and such wages shall be paid before the expiry of the period as may be prescribed.
(2) Every principal employer shall nominate a representative duly authorized by him to be present at the time of disbursement of wages by the contractor. It shall be the duty of such a representative to certify the amounts paid as wages in the prescribed manner.
(3) It shall be the duty of the contractor to ensure the disbursement of wages in the presence of the authorized representative of the principal employer.
(4) In case the contractor fails to make payment of wages within the prescribed period or makes a short payment, then the principal employer shall be liable to make the payment of wages in full or the unpaid balance due, as the case may be, to the contract labor employed by the contractor. The principal employer can recover the amount so paid from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor.
From India, Secunderabad
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3(1) A contractor shall be responsible for the payment of wages to each worker employed by him as contract labor, and such wages shall be paid before the expiry of the period as may be prescribed.
(2) Every principal employer shall nominate a representative duly authorized by him to be present at the time of disbursement of wages by the contractor. It shall be the duty of such a representative to certify the amounts paid as wages in the prescribed manner.
(3) It shall be the duty of the contractor to ensure the disbursement of wages in the presence of the authorized representative of the principal employer.
(4) In case the contractor fails to make payment of wages within the prescribed period or makes a short payment, then the principal employer shall be liable to make the payment of wages in full or the unpaid balance due, as the case may be, to the contract labor employed by the contractor. The principal employer can recover the amount so paid from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor.
From India, Secunderabad
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For whatever reason the contractor does not pay contribution, the ultimate responsibilty to pay it squarely rests with the Principal employer. B.Saikumar HR & Labour Advisor Mumbai
From India, Mumbai
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From India, Mumbai
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Case of Dispute in Construction Project
A Private Limited Company is presently constructing a commercial building for a hotel. The company had appointed a contractor for the same. The contractor has given work under his contract to a subcontractor. The work was going on smoothly at the site.
The Director of the Company underwent open-heart surgery. As the director was the only one with the knowledge of what needed to be made and where, and he was responsible for overseeing the day-to-day work of construction, the family members of the director stopped the work on-site and settled the account with the contractor.
In the meantime, there was a dispute between the contractor and the subcontractor. The contractor removed the subcontractor without finalizing his account with him. The subcontractor, through his employees, filed a case in the labor court in the name of the employees, pleading that they were not paid wages from November 2012 to March 2013. Now, the labor court has issued summons to the director of the company and the contractor. The name of the subcontractor does not appear anywhere in the application filed by the workers.
Please advise on how to handle the case.
Thanks,
Jawaharlal
From India, Jodhpur
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A Private Limited Company is presently constructing a commercial building for a hotel. The company had appointed a contractor for the same. The contractor has given work under his contract to a subcontractor. The work was going on smoothly at the site.
The Director of the Company underwent open-heart surgery. As the director was the only one with the knowledge of what needed to be made and where, and he was responsible for overseeing the day-to-day work of construction, the family members of the director stopped the work on-site and settled the account with the contractor.
In the meantime, there was a dispute between the contractor and the subcontractor. The contractor removed the subcontractor without finalizing his account with him. The subcontractor, through his employees, filed a case in the labor court in the name of the employees, pleading that they were not paid wages from November 2012 to March 2013. Now, the labor court has issued summons to the director of the company and the contractor. The name of the subcontractor does not appear anywhere in the application filed by the workers.
Please advise on how to handle the case.
Thanks,
Jawaharlal
From India, Jodhpur
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