Dear Friends, Could you please let me know the Prinicial Employer Liability on Gratuity to his contract workers.
From India, Bangalore
From India, Bangalore
Hi Harish
It's purely based on the the type of agreement theyhad with you,
Eg: If the agreement is SLA (Service Level Agreement) then Principal Employer is responsible for all the statutory including Gratuity, Bonus, Leave encashments etc.
For remaining all It's based on the clauses in the agreement.
Cheers
Karthik Nayudu
From India, Vijayawada
80It's purely based on the the type of agreement theyhad with you,
Eg: If the agreement is SLA (Service Level Agreement) then Principal Employer is responsible for all the statutory including Gratuity, Bonus, Leave encashments etc.
For remaining all It's based on the clauses in the agreement.
Cheers
Karthik Nayudu
From India, Vijayawada
Dear All,
Object of Contract Labour Act ( Regulation & Prohibition ) is
1) to prohibit the Contract Labour System where the work is of continuous & perennial nature
2) Thant means there is intermittent work ( less than 240 days ) as per Industrial Dispute Act under sention 25 F for provision of Retrenchment Compensation.
3) That means you do not require Contract Labour more than 240 days in an Organization.
4) If you are employing contract labour for regular / perennial activity then it is illegal to do so as per Contract Labour Act
5) So for illegal activity ( i.e. more than 05 years continuous service of contract labours ) the principal employer should be punished first..... by regularizing the contract labours.
Very sorry if I offended feelings / sentiments of anyone on this Cite by this post.
From India, Pune
Object of Contract Labour Act ( Regulation & Prohibition ) is
1) to prohibit the Contract Labour System where the work is of continuous & perennial nature
2) Thant means there is intermittent work ( less than 240 days ) as per Industrial Dispute Act under sention 25 F for provision of Retrenchment Compensation.
3) That means you do not require Contract Labour more than 240 days in an Organization.
4) If you are employing contract labour for regular / perennial activity then it is illegal to do so as per Contract Labour Act
5) So for illegal activity ( i.e. more than 05 years continuous service of contract labours ) the principal employer should be punished first..... by regularizing the contract labours.
Very sorry if I offended feelings / sentiments of anyone on this Cite by this post.
From India, Pune
Extracting a post in https://www.citehr.com/285737-legal-...ndustry-2.html
Dear All
Sub: Gratuity payment
Please note that Contract Labour are entitled for gratuity as per the decision of HIGH COURT OF JUDICATURE AT MADRAS DATED: 20.11.2006 The Honourable Mr.Justice P.D.DINAKARAN and The Honourable Mr.Justice P.P.S.JANARTHANA RAJA. in the case of The Management of Cruickshank & Company Ltd.vs The Appellate Authority under Payment of Gratuity Act, 1992and Regional Labour Commissioner (Central), Shastri Bhavan, Chennai.The Court held :
"The entitlement of contract labourers for gratuity cannot be dislodged or denied on account of tussle between the principal employer, who engaged the service of the contract labourers and the contractor, who employed the contract labourers;"
The Court went to further say:
....the gratuity claimed by the claimants herein being a welfare benefit created and payable by operation of law under the provisions of the Payment of Gratuity Act which are included under clause(d) of Section 2(vi) of the Payment of Wages Act within the meaning of wages payable to the contract labourers, it would be the basic responsibility of the petitioner *(ie the Principal Employer ) to make payment of gratuity to the claimants in full or in part as per Section 21(4) of the Contract Labour Act, of course, without prejudice to the right of the petitioner *(ie the Principal Employer ) to recover the same from the third respondent, contractor, even though the initial responsibility to make such payment of gratuity lies with the third respondent, contractor, as the welfare legislations such as
(i) Payment of Wages Act, 1936;
(ii) Contract Labour (Regulation and Abolition) Act, 1970; and
(iii) Payment of Gratuity Act, 1972,
are to be interpreted liberally and in widest possible construction in favour of the labourers, the claimants herein. Therefore, for deciding whether the wages payable to the claimants includes gratuity within the meaning of Contract Labour Act, 1970, whereunder the definition of wages is traceable to the definition of wages in the Payment of Wages Act, 1936 and the centrifugal issue whether the gratuity payable under the Payment of Gratuity Act is protected under Section 2(vi)(d) of the Payment of Wages Act, 1936, in spite of exclusion under sub-clause (6) of Section 2(vi) of the Payment of Wages Act, 1936, we are constrained, as a rule of interpretation, to refer the object and reasons of the legislative intention of all the three statutes, referred to above and the scope and ambit of the provisions contained thereunder and are satisfied that the gratuity being a benefit created and payable by operation of law under the provisions of the Payment of Gratuity Act, 1972, is protected within the definition of wages for having included under clause (d) of Section 2(vi) of the Payment of Wages Act, 1936. Therefore, the Court has to give full effect to the legal/statutory fiction and such fiction has to be carried to its logical conclusions, as any other view would only frustrate the legislative intention of all the enactments."....
*Added by us for explanation
By virtue of this Judgment employees of the Contractor deployed at the place of Principal Employer who become entitled for gratuity as per the Payment of Gratuity Act are to be settled gratuity on their severance.In case the Contractor fails to settle it the Employees can make a claim on the Principal Employer who needs to settle it and becomes liable and thereafter recover it from the Contractor.
rajanlawfirm
From India, Madras
Dear All
Sub: Gratuity payment
Please note that Contract Labour are entitled for gratuity as per the decision of HIGH COURT OF JUDICATURE AT MADRAS DATED: 20.11.2006 The Honourable Mr.Justice P.D.DINAKARAN and The Honourable Mr.Justice P.P.S.JANARTHANA RAJA. in the case of The Management of Cruickshank & Company Ltd.vs The Appellate Authority under Payment of Gratuity Act, 1992and Regional Labour Commissioner (Central), Shastri Bhavan, Chennai.The Court held :
"The entitlement of contract labourers for gratuity cannot be dislodged or denied on account of tussle between the principal employer, who engaged the service of the contract labourers and the contractor, who employed the contract labourers;"
The Court went to further say:
....the gratuity claimed by the claimants herein being a welfare benefit created and payable by operation of law under the provisions of the Payment of Gratuity Act which are included under clause(d) of Section 2(vi) of the Payment of Wages Act within the meaning of wages payable to the contract labourers, it would be the basic responsibility of the petitioner *(ie the Principal Employer ) to make payment of gratuity to the claimants in full or in part as per Section 21(4) of the Contract Labour Act, of course, without prejudice to the right of the petitioner *(ie the Principal Employer ) to recover the same from the third respondent, contractor, even though the initial responsibility to make such payment of gratuity lies with the third respondent, contractor, as the welfare legislations such as
(i) Payment of Wages Act, 1936;
(ii) Contract Labour (Regulation and Abolition) Act, 1970; and
(iii) Payment of Gratuity Act, 1972,
are to be interpreted liberally and in widest possible construction in favour of the labourers, the claimants herein. Therefore, for deciding whether the wages payable to the claimants includes gratuity within the meaning of Contract Labour Act, 1970, whereunder the definition of wages is traceable to the definition of wages in the Payment of Wages Act, 1936 and the centrifugal issue whether the gratuity payable under the Payment of Gratuity Act is protected under Section 2(vi)(d) of the Payment of Wages Act, 1936, in spite of exclusion under sub-clause (6) of Section 2(vi) of the Payment of Wages Act, 1936, we are constrained, as a rule of interpretation, to refer the object and reasons of the legislative intention of all the three statutes, referred to above and the scope and ambit of the provisions contained thereunder and are satisfied that the gratuity being a benefit created and payable by operation of law under the provisions of the Payment of Gratuity Act, 1972, is protected within the definition of wages for having included under clause (d) of Section 2(vi) of the Payment of Wages Act, 1936. Therefore, the Court has to give full effect to the legal/statutory fiction and such fiction has to be carried to its logical conclusions, as any other view would only frustrate the legislative intention of all the enactments."....
*Added by us for explanation
By virtue of this Judgment employees of the Contractor deployed at the place of Principal Employer who become entitled for gratuity as per the Payment of Gratuity Act are to be settled gratuity on their severance.In case the Contractor fails to settle it the Employees can make a claim on the Principal Employer who needs to settle it and becomes liable and thereafter recover it from the Contractor.
rajanlawfirm
From India, Madras
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