If the labor contractor has not paid the EPF of the laborers, is the principal employer liable for the payment of EPF? If yes, is the penalty payment of EPF also required to be borne by the principal employer?
From India, Chennai
Acknowledge(0)
Amend(0)
From India, Chennai
Acknowledge(0)Amend(0)
There are certain case laws where the court has decided that if the contractor has its own code, then it is the responsibility of the contractor to comply, not the principal employer (PE).
But each case has its own merit. There are several types of agreements between the PE and the contractor, which are very important to judge the situation. If the PE is not paying properly to the contractor, then the case merit will be different. Again, if the PE is making payments properly but the contractor is not complying, then it is another situation.
In my opinion, the first step is to select an ethical contractor, ensure payment by the PE on time, and conduct regular checks (monthly) by the PE about the compliance status of the contractor, which possibly will make the situation smooth.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions [Phone Number Removed For Privacy-Reasons] [Email Removed For Privacy Reasons] USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
Acknowledge(0)Amend(0)
367But each case has its own merit. There are several types of agreements between the PE and the contractor, which are very important to judge the situation. If the PE is not paying properly to the contractor, then the case merit will be different. Again, if the PE is making payments properly but the contractor is not complying, then it is another situation.
In my opinion, the first step is to select an ethical contractor, ensure payment by the PE on time, and conduct regular checks (monthly) by the PE about the compliance status of the contractor, which possibly will make the situation smooth.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions [Phone Number Removed For Privacy-Reasons] [Email Removed For Privacy Reasons] USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Principal employer liable if contractor fails to pay wages to workers Delhi High Court Judgement.pdf