Hello,
Our establishment has engaged security services through an outside agency. We routinely pay the agency the monthly wages of the said security staff, which the agency, in turn, pays to the staff. Last month, the staff got into a dispute with the agency management, and the agency threatened not to pay the wages. In this scenario, will we be liable to pay the salary directly to the said security staff, since they have provided the service last month on our premises?
From India, Thrissur
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Our establishment has engaged security services through an outside agency. We routinely pay the agency the monthly wages of the said security staff, which the agency, in turn, pays to the staff. Last month, the staff got into a dispute with the agency management, and the agency threatened not to pay the wages. In this scenario, will we be liable to pay the salary directly to the said security staff, since they have provided the service last month on our premises?
From India, Thrissur
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Dear CocoBoy, this is not necessary as the agency threatening the employee will not actually do what it says. You need to engage with the higher management of the agency and discuss the issue. If you find that there are any chances where the agency will not pay dues to the security guard, then you can always hold back their payment. It is allowed to pay directly to the contract employee if the contractor is not paying or ready to pay, and it is legally allowed. Also, even the principal employer can submit their PF dues as contract employees.
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58. Security Agency.doc
Employee Salary file - India 2016 AB.xls