. EMPLOYER AND CONTRACTOR AGREEMENT ON STAMP PAPER OF RS.500 AND NOTARISED. IS THIS THE PROCEDURE? OR ARE ANY OTHER STEPS TO THE FOLLOWED TO BECOME LEGAL? PLEASE ADVISE.
From India
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1From India
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Hi, Even without Notary sign it is valid as for as the terms and conditions are mutually agreed between both parties.
From India, Madras
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From India, Madras
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The work awarded to a contractor via a Work Order is a valid document. The agreement signed on stamp paper is also valid, provided the wording and text remain the same; otherwise, it could create problems in the future.
Further, the document under which a license is issued or obtained by the contractor shall be treated as paramount.
From India, Mumbai
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Further, the document under which a license is issued or obtained by the contractor shall be treated as paramount.
From India, Mumbai
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Importance of Agreement on Stamp Paper
Having the agreement on stamp paper is an important compliance requirement, though it is not mandated under the Contract Act or Contract Labour Act. Notarizing, on the other hand, has no visible impact.
Court Considerations in Contract Disputes
The problem stems from the fact that in a court case where workers claim that the contract is a sham, the courts examine how an agreement is executed and whether there is a principal-to-principal agreement made with an agency that is an independent business. It is crucial to demonstrate that it is a normal business following all standard business processes.
Issues with Unstamped Agreements
In the case of unstamped agreements, it is alleged by the workers that the agreement never existed and was created just to present to the court after the complaint. Another issue is that courts will refuse to enforce an unstamped agreement, rendering it invalid as evidence. The new Supreme Court judgment on the refusal to enforce an arbitration order on an unstamped agreement reinforces this rule.
From India, Mumbai
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Having the agreement on stamp paper is an important compliance requirement, though it is not mandated under the Contract Act or Contract Labour Act. Notarizing, on the other hand, has no visible impact.
Court Considerations in Contract Disputes
The problem stems from the fact that in a court case where workers claim that the contract is a sham, the courts examine how an agreement is executed and whether there is a principal-to-principal agreement made with an agency that is an independent business. It is crucial to demonstrate that it is a normal business following all standard business processes.
Issues with Unstamped Agreements
In the case of unstamped agreements, it is alleged by the workers that the agreement never existed and was created just to present to the court after the complaint. Another issue is that courts will refuse to enforce an unstamped agreement, rendering it invalid as evidence. The new Supreme Court judgment on the refusal to enforce an arbitration order on an unstamped agreement reinforces this rule.
From India, Mumbai
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Principal employer liable if contractor fails to pay wages to workers Delhi High Court Judgement.pdf
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