Can the company availing services from a contractor for the supply of manpower claim damages from the contractor for the supply of less manpower? I want to understand the law on this so that an appropriate clause can be inserted in the agreement for manpower supply. Does the below clause help?
Under this agreement, "time is of the essence" for providing the services as specified by the company from time to time. The contractor hereby agrees and acknowledges that if the contractor fails to supply the requisite number of workmen competent to provide the services within 24 hours, then the company will suffer immeasurable inconvenience which may or may not lead to substantial financial damages, irreparable injury, and loss of reputation due to non-completion of business transactions in hand. The contractor hereby undertakes to indemnify and compensate the company for any such losses, damages, and injuries to the extent and equivalent to financial damages suffered by the company.
From India, Mumbai
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1Under this agreement, "time is of the essence" for providing the services as specified by the company from time to time. The contractor hereby agrees and acknowledges that if the contractor fails to supply the requisite number of workmen competent to provide the services within 24 hours, then the company will suffer immeasurable inconvenience which may or may not lead to substantial financial damages, irreparable injury, and loss of reputation due to non-completion of business transactions in hand. The contractor hereby undertakes to indemnify and compensate the company for any such losses, damages, and injuries to the extent and equivalent to financial damages suffered by the company.
From India, Mumbai
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The torts under any agreement should be genuine. The manpower agency is liable to supply manpower, but for short supply of manpower, when you impose a punishment like damages, it should be genuine. He will be able to supply manpower provided that you are ready to pay the cost as per the market. If the terms and conditions also state that the employer will take any manpower that the manpower supplier is supplying, and the employer is ready to hire or take him at any cost/wages that the worker is demanding, then there is a sense in demanding damages. In other forms of contracts, the nature/attribute/color/quality is uniform from the manufacturer's side itself, but in manpower supply, it will change according to the nature or habits of people. Therefore, it is difficult to enforce the provision relating to damages.
From India, Kannur
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From India, Kannur
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I think the agreement is stupid, and the contractor will be foolish (or desperate) to accept it.
First, insisting that increased manpower must be available in 24 hours is unrealistic, unless the work is very generic and there is a lot of unemployment in the locality. Even then, getting people so quickly and also vetting them is impossible in most cases.
To be liable to pay for not providing the manpower, that too, the loss of the company, is very stupid also. Manpower probably accounts for 10% of the cost, and therefore the contractor will be liable for 10 times the wages (or more) in case he can't give the manpower in time.
What happens if people leave or refuse to join on account of lower salary, bad behavior of managers, overwork, lack of safety, etc?
If the contractor is signing it, either he didn't understand it (not being a legal man) or he doesn't care as he knows the company has no way to enforce it (no assets, no way to enforce a court decree, etc).
From India, Mumbai
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First, insisting that increased manpower must be available in 24 hours is unrealistic, unless the work is very generic and there is a lot of unemployment in the locality. Even then, getting people so quickly and also vetting them is impossible in most cases.
To be liable to pay for not providing the manpower, that too, the loss of the company, is very stupid also. Manpower probably accounts for 10% of the cost, and therefore the contractor will be liable for 10 times the wages (or more) in case he can't give the manpower in time.
What happens if people leave or refuse to join on account of lower salary, bad behavior of managers, overwork, lack of safety, etc?
If the contractor is signing it, either he didn't understand it (not being a legal man) or he doesn't care as he knows the company has no way to enforce it (no assets, no way to enforce a court decree, etc).
From India, Mumbai
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Dear Member,
The senior member of this forum, Mr. Madhu TK, has provided a logical reply and raised several valid points. My additional observations are as follows:
a) All contracts in India fall within the purview of the கோர்ட் ஆஃப் ஜஸ்டிஸ். Once the contract is signed by the buyer and the contractor, the terms and conditions mentioned in the contract are binding on both parties.
b) The condition to provide manpower within 24 hours of the requisition being placed is too harsh. Whether the manpower contractor agrees to it remains to be seen.
c) The penultimate line from the bottom of the post mentions: The Contractor hereby undertakes to be indemnified and to compensate the Company for any such... Instead of "The Contractor hereby undertakes to be indemnified and compensate the Company for," you can simplify and write "The Contractor hereby பிடித்து to compensate the Company for..."
d) The last two lines of the second paragraph mention: ஸ்டுடி கப்பர் கவர்னர் விக்டர் மரணம். However, how the losses, damages, or injuries will be calculated, and what percentage of it will be recovered from the contractor has not been mentioned. Even the contractor's workers have designations. You can specify what recovery will be made if a worker of a particular designation is not supplied.
e) The second paragraph mentions: ரூம் செல்வின் கப்பர் தமிழ் வாதித் எப்படி. The words and phrases imply that the nature of the job done by the contract workers is sensitive. If the non-availability of manpower could cause substantial damages, irreparable injury, and loss of reputation, then why has the company approached the manpower contractor? Should they not keep the employees on their roll?
Thanks,
முருகேஷ் வெங்கடசாமி.
From India, Bangalore
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The senior member of this forum, Mr. Madhu TK, has provided a logical reply and raised several valid points. My additional observations are as follows:
a) All contracts in India fall within the purview of the கோர்ட் ஆஃப் ஜஸ்டிஸ். Once the contract is signed by the buyer and the contractor, the terms and conditions mentioned in the contract are binding on both parties.
b) The condition to provide manpower within 24 hours of the requisition being placed is too harsh. Whether the manpower contractor agrees to it remains to be seen.
c) The penultimate line from the bottom of the post mentions: The Contractor hereby undertakes to be indemnified and to compensate the Company for any such... Instead of "The Contractor hereby undertakes to be indemnified and compensate the Company for," you can simplify and write "The Contractor hereby பிடித்து to compensate the Company for..."
d) The last two lines of the second paragraph mention: ஸ்டுடி கப்பர் கவர்னர் விக்டர் மரணம். However, how the losses, damages, or injuries will be calculated, and what percentage of it will be recovered from the contractor has not been mentioned. Even the contractor's workers have designations. You can specify what recovery will be made if a worker of a particular designation is not supplied.
e) The second paragraph mentions: ரூம் செல்வின் கப்பர் தமிழ் வாதித் எப்படி. The words and phrases imply that the nature of the job done by the contract workers is sensitive. If the non-availability of manpower could cause substantial damages, irreparable injury, and loss of reputation, then why has the company approached the manpower contractor? Should they not keep the employees on their roll?
Thanks,
முருகேஷ் வெங்கடசாமி.
From India, Bangalore
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Manpower Contract Agreement-Forma t.doc
Obligations under Contract Labour Act, 1970.pdf