Sirs,
"The contractor has submitted monthly bills, and there is a delay in the process from the principal employer's side for making payment/cheque to the contractor. In that case, if the contractor is not paying wages/monthly salary to their employees on time or by the 1st week/before the 7th of the next month."
What should we do as a principal employer?
From India, Gandhinagar
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"The contractor has submitted monthly bills, and there is a delay in the process from the principal employer's side for making payment/cheque to the contractor. In that case, if the contractor is not paying wages/monthly salary to their employees on time or by the 1st week/before the 7th of the next month."
What should we do as a principal employer?
From India, Gandhinagar
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The principal employer has to give the advance to the contractor to pay the salary. The same will be adjusted in the payment bill.
If he is a large contractor, then he would rotate the fund by adjusting somehow to manage the salary. But if the contractor is doing only for a little client, then it would be a problem for them to disburse the salary.
Contractors make a profit mainly from the service tax only since today every company agrees to pay only the minimum wages for the position. They are also very keen on PF and ESI, where the principal employer is responsible. In earlier days, some of the contractors made money by not paying correct ESI/PF for the contract employees. So, only today PF/ESI departments are very strict on the contributions and also ensure the principal employer is liable/responsible for the payment of wages, ESI/PF contributions to the employees of contract labors.
As a principal employer, you have to credit the monthly amount to the contractor so that he can disburse the salary to his employees without any problem or delay.
From India, Mumbai
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216If he is a large contractor, then he would rotate the fund by adjusting somehow to manage the salary. But if the contractor is doing only for a little client, then it would be a problem for them to disburse the salary.
Contractors make a profit mainly from the service tax only since today every company agrees to pay only the minimum wages for the position. They are also very keen on PF and ESI, where the principal employer is responsible. In earlier days, some of the contractors made money by not paying correct ESI/PF for the contract employees. So, only today PF/ESI departments are very strict on the contributions and also ensure the principal employer is liable/responsible for the payment of wages, ESI/PF contributions to the employees of contract labors.
As a principal employer, you have to credit the monthly amount to the contractor so that he can disburse the salary to his employees without any problem or delay.
From India, Mumbai
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thank you for the reply. to give advance is a good suggestion but as non compliance of payment in 1st week of the month - who is primary responsible, prinicpal employer / contractor ?
From India, Gandhinagar
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From India, Gandhinagar
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Non-compliance occurs when the contractor is not paid on time. If the principal employer has paid on time but the contractor has failed to provide the salary, you can take action against the contractor. However, in this situation, the responsibility lies solely with the principal employer, who must take accountability, resolve the issue, and assist the contractor in disbursing the salary to their employees.
From India, Mumbai
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From India, Mumbai
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Hi what are the revise minimum wage of Karnataka.(Regarding to September 2011 middle revise and 2011 to 2012)
From India, Mumbai
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From India, Mumbai
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Dear All,
The principal employer is responsible for the delay in wages disbursement of contract labor. Various companies have formed policies of security deposit of contractors for any kind of non-compliance/liability. Therefore, it is a better option for the timely disbursement of contract labor wages.
Regards,
From India, Nasik
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The principal employer is responsible for the delay in wages disbursement of contract labor. Various companies have formed policies of security deposit of contractors for any kind of non-compliance/liability. Therefore, it is a better option for the timely disbursement of contract labor wages.
Regards,
From India, Nasik
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This is perfectly alright. However, such contracts, when mutually agreed upon, are not binding on the principal employed to make timely payments to the contractor. In such cases, the contractor is liable to pay the dues to his workers.
Regards,
S K Priyadarshi
From India, Delhi
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Regards,
S K Priyadarshi
From India, Delhi
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Dear Seniors / Juniors Sir let me inform is there any software in the market to prepare monthly wages ( no work no pay basis) for workers. I will be highly thankful to you. Debopam Dey
From India, Kolkata
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From India, Kolkata
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Any contract between the Principal Employer and Contractor must clearly specify the date on which the Contractor has to submit the bill to the Principal Employer. Generally, the Contractor is advised to submit the bill within 3 working days from the close of the previous calendar month.
The Principal Employer must release the payment to the Contractor on or before the 7th of every month if the number of employees in the organization is less than 1000 and on or before the 10th of every month if the number of employees is more than 1000.
It is also the responsibility of the Principal Employer to ensure that the bill is submitted by the Contractor within 3 working days and the release of payment on or before the 7th or 10th of the succeeding month.
Payment of wages to the employees engaged by the Contractor in advance is not a good idea because the Contractor will then take a cue from this and will tend to procrastinate submission of bills on time.
Moreover, the Master-Servant relationship exists only between the Contractor and his employees.
Perhaps you can consider penalizing the Contractor a token amount so that the submission of bills is done within 3 working days.
From the Principal Employer's side, you need to ensure that the authorization of bills by your officials and payment of bills by your Finance is done at least on the 6th or 9th of every month so that the Contractor can release the payment on the 7th or 10th of every month.
Regards,
MVK
From India, Madras
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The Principal Employer must release the payment to the Contractor on or before the 7th of every month if the number of employees in the organization is less than 1000 and on or before the 10th of every month if the number of employees is more than 1000.
It is also the responsibility of the Principal Employer to ensure that the bill is submitted by the Contractor within 3 working days and the release of payment on or before the 7th or 10th of the succeeding month.
Payment of wages to the employees engaged by the Contractor in advance is not a good idea because the Contractor will then take a cue from this and will tend to procrastinate submission of bills on time.
Moreover, the Master-Servant relationship exists only between the Contractor and his employees.
Perhaps you can consider penalizing the Contractor a token amount so that the submission of bills is done within 3 working days.
From the Principal Employer's side, you need to ensure that the authorization of bills by your officials and payment of bills by your Finance is done at least on the 6th or 9th of every month so that the Contractor can release the payment on the 7th or 10th of every month.
Regards,
MVK
From India, Madras
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