Labour Payment
6 months ago
We are contractor & have labor license. we have engaged on labor contractor under us who have not paid the wages to his labors . We as a contractor has paid all hi bill & have proper work order also. Now his labors went to Labour Enforcement Officer & lodged complaint against us for non payment. They don't have any other proof rather than Gate pass of our company. Are we responsible for this labor payment?
A.Dear Client,
As per sub-section 4 of Sec.21 of the Contract Labour (Regulation and Abolition) Act, 1870, In case the contractor fails to make payment of wages within the prescribed period or makes short payment, then the principal employer shall be liable to make payment of wages in full or the unpaid balance due, as the case may be, to the contract labour employed by the contractor and recover the amount so paid from the contractor either by deduction from any amount payable to the contractor any contract as a debt payable by the contractor. Once a complaint is received by the LEO, he can after investigation of the complaint prosecute the defaulter for violation of the provision of the governing laws.
As per sub-section 4 of Sec.21 of the Contract Labour (Regulation and Abolition) Act, 1870, In case the contractor fails to make payment of wages within the prescribed period or makes short payment, then the principal employer shall be liable to make payment of wages in full or the unpaid balance due, as the case may be, to the contract labour employed by the contractor and recover the amount so paid from the contractor either by deduction from any amount payable to the contractor any contract as a debt payable by the contractor. Once a complaint is received by the LEO, he can after investigation of the complaint prosecute the defaulter for violation of the provision of the governing laws.
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A.Dear Client,
In India, labor laws often place responsibility on both the principal employer (in this case, your company) and the labor contractor for ensuring that laborers are paid their wages and provided with other statutory benefits. As the principal employer, your company may be held responsible for ensuring that laborers engaged by the labor contractor are paid their wages and provided with other statutory benefits, even if you have paid the labor contractor's bills. The responsibility of the principal employer is specified in various labor laws and may vary by state.
The terms of your contractual agreement with the labor contractor may also play a significant role in determining your liability. If the contract clearly outlines that the labor contractor is solely responsible for paying wages and complying with labor laws, it may help your case. The fact that the laborers have gate passes from your company may indicate that they were working on your premises. This could potentially be used as evidence that they were under your supervision, which might increase your liability. If a complaint has been filed with the Labor Enforcement Officer, it's crucial to cooperate with the investigation and provide any necessary documentation to establish your company's compliance with labor laws
In India, labor laws often place responsibility on both the principal employer (in this case, your company) and the labor contractor for ensuring that laborers are paid their wages and provided with other statutory benefits. As the principal employer, your company may be held responsible for ensuring that laborers engaged by the labor contractor are paid their wages and provided with other statutory benefits, even if you have paid the labor contractor's bills. The responsibility of the principal employer is specified in various labor laws and may vary by state.
The terms of your contractual agreement with the labor contractor may also play a significant role in determining your liability. If the contract clearly outlines that the labor contractor is solely responsible for paying wages and complying with labor laws, it may help your case. The fact that the laborers have gate passes from your company may indicate that they were working on your premises. This could potentially be used as evidence that they were under your supervision, which might increase your liability. If a complaint has been filed with the Labor Enforcement Officer, it's crucial to cooperate with the investigation and provide any necessary documentation to establish your company's compliance with labor laws
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