Please advise on the following:
We are engaging security guards through TOP Security Agency. We have paid all statutory payments, including bonuses, on their monthly bills. Despite repeated reminders and notices, they have not released the guards' salaries on time and have ignored paying the bonuses. As a result, we have decided to terminate our contract with the agency and hire a new agency for our existing manpower.
In this scenario, we require a declaration cum undertaking from each guard for the new engagement. In this declaration, we want to include a clause stating that they will not claim any outstanding payments (TOP pending payments) from their previous engagement. This will help us in potential legal actions in the future. Meanwhile, we are trying to settle all pending payments with the TOP management.
Kindly assist with the required format accordingly.
From India, New Delhi
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4We are engaging security guards through TOP Security Agency. We have paid all statutory payments, including bonuses, on their monthly bills. Despite repeated reminders and notices, they have not released the guards' salaries on time and have ignored paying the bonuses. As a result, we have decided to terminate our contract with the agency and hire a new agency for our existing manpower.
In this scenario, we require a declaration cum undertaking from each guard for the new engagement. In this declaration, we want to include a clause stating that they will not claim any outstanding payments (TOP pending payments) from their previous engagement. This will help us in potential legal actions in the future. Meanwhile, we are trying to settle all pending payments with the TOP management.
Kindly assist with the required format accordingly.
From India, New Delhi
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I would like to inform you that it is not ethically right or lawful to take any written format without requesting legal dues or claims from the employer. This approach will not solve your problem. I recommend following up with your vendor and ensuring they make the necessary payments to the employees. Alternatively, you can initiate legal action against the contractor instead of obtaining an undertaking from the security guards.
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Dear Siba, the problem has arisen because you have not followed the provisions of the Contract Labour Regulations Act (CLRA) properly. The act mandates that during the disbursement of the salary to the contract workers, it has to be done in front of the representative of the principal employer. In your case, when you came to know that the contractor is not passing the monthly salary to the workers, you should have stopped paying him and deposited the salary in the bank account of the respective employee.
Responsibility of the Principal Employer
The principal employer is ultimately responsible to ensure that the contract workers get their payment. Now, in your case, you wanted to take an undertaking from each contract worker that the onus of non-payment of wages to them rests with the contractor and they will not raise any claim to you. However, by obtaining this kind of undertaking, if you think that you can absolve your responsibility, then it is a myth. In the eyes of the CLRA, this undertaking does not hold water. Therefore, follow up with the contractor so that he clears the contract workers' legitimate dues.
Thanks,
Dinesh Divekar
From India, Bangalore
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Responsibility of the Principal Employer
The principal employer is ultimately responsible to ensure that the contract workers get their payment. Now, in your case, you wanted to take an undertaking from each contract worker that the onus of non-payment of wages to them rests with the contractor and they will not raise any claim to you. However, by obtaining this kind of undertaking, if you think that you can absolve your responsibility, then it is a myth. In the eyes of the CLRA, this undertaking does not hold water. Therefore, follow up with the contractor so that he clears the contract workers' legitimate dues.
Thanks,
Dinesh Divekar
From India, Bangalore
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(Fact Checked)-The user reply is correct. It accurately highlights the provisions of the Contract Labour Regulations Act (CLRA) regarding payment to contract workers and the responsibility of the principal employer to ensure timely payment. (1 Acknowledge point)
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I dont advise the practice of Principle Employer directly paying salary of contractors workers either in cash or crediting to their a/c.
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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Dear Siba, even if you take an undertaking and they also give you the same, it does not provide you with any protection from the payment of unpaid salaries and bonuses as a principal employer. As a PE, you are legally bound to pay the same; how you do it is your problem.
Unpaid Bonuses and Salaries
For how many years has TOPS not paid bonuses? What have you done as a PE to force the contractor to pay salaries/wages on time? How and why could you not compel him to pay while you had all the controls? If the contractor is not paying, you can directly pay and set off against the contractor's bills.
Warm Regards,
Bharat Gera
HR Consultant
[Phone Number Removed For Privacy-Reasons]
From India, Thane
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Unpaid Bonuses and Salaries
For how many years has TOPS not paid bonuses? What have you done as a PE to force the contractor to pay salaries/wages on time? How and why could you not compel him to pay while you had all the controls? If the contractor is not paying, you can directly pay and set off against the contractor's bills.
Warm Regards,
Bharat Gera
HR Consultant
[Phone Number Removed For Privacy-Reasons]
From India, Thane
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(Fact Checked)-The user reply contains accurate information regarding the legal obligations of the principal employer to ensure payment of salaries and bonuses, even if subcontractors fail to do so. The suggestion to directly pay and set off against the contractor's bills aligns with legal provisions. (1 Acknowledge point)
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(Fact Checked)-The user's reply is correct. Encouragement is crucial in maintaining a positive work environment. (1 Acknowledge point)