Sir,
may please tell if Principal Employer will be held liable by labour Dept, in case the contracor fails to make payment of gratuity at the the time contract closing and the workers have worked for more than five years each ?
P C Singh

From India, New Delhi

Sir,
may please tell if Principal Employer will be held liable by labour Dept, in case the contracor fails to make payment of gratuity at the the time contract closing and the workers have worked for more than five years each ?

From India, Hyderabad

Principal employer is liable only for payment of wages (in case contractor fails to do so). Here, wages as as defined in Payment of wages act excludes gratuity, bonus from definition of wages. Therefore Principal employer is not bound legally to pay for Gratuity to Contract Labour, unless there is an agreement in this behalf
From India, Mumbai

dear principle employer is not liable for payment of gratuity to contract workers.even it was decided by karnatka high court in one case
From India, Delhi

Sir,
Please clarify, if in certain annual contracts, the labours donot get changed, whereas the contrctors get changed and in this situation if the labours have worked for more than 10/15 years under different contractors, whether there will be any liablilty on P.E., say at the end of 15 years ?
P C Singh

From India, New Delhi

Yes, if the contractual employee claiming for Gratuity can prove that he has worked with the P.E. for more than 5 years without any break, then the P.E. will be held liable to pay Gratuity to such contract laborers.
From India, Delhi

In a recent judgment in a case titled as Superintending Engineer vs. Appellate Authority, JLC Hon'ble High Court of Madras held that the initial responsibility lies on the contractor to make payment of gratuity in view of Section 21(4) of the CLRA Act.

In case the contractor fails to pay gratuity to the contract labor, the principal employer is liable to pay gratuity, which can in turn be recovered from the contractor.

From India, Delhi

Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.






Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2025 CiteHR �

All Copyright And Trademarks in Posts Held By Respective Owners.