Contact company is asking client company to pay DA revisions Contact company is asking client company to pay DA revisions

8 months ago

I wanted to know whether a private contractor can hold another private company client liable if the private company refuses to pay the DA revisions.

Legal Counsel Vidhikarya

Responded 8 months ago

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A.Dear Client,
As per the Contract Labour(R & A) Act, 1970, a Contractor is liable to pay at the revised rate of DA to his worker/employee and in case the contractor fails to discharge his liability, then the Principal Employer/Company, who engaged the Contractor for the execution of his work or assignment held liable to pay the DA at the revised rate to the contractor workers/employees.
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Vidhi Samaadhaan Vidhi Samaadhaan

Anik

Responded 8 months ago

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A.Dear client,
Generally, if the private contractor is solely liable to pay DA revision, he cannot hold another company liable as the burden to pay falls on him
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Vidhi Samaadhaan Vidhi Samaadhaan

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