Request for a quick guidance on following case,
In our organisation (factory) one contractor has failed to make payment to their workmen. So we as principal employer or PE have taken initiative to pay the wages i.e. salary dues, pf dues and esi dues, u/s 21(4). now contractor is pressing us to pay the full and final dues to their workmen and adjust from their bill. Our management stand is not to enter into settlement of full and final dues as it is a matter between contractor and their workmen. Only the statutory payments like salary pf and esi may be paid by PE.
please guide on the same. Is it so that payment directly made by PE on account of full & final may invoke the concept of sham and camouflage to us.
Rgds,
DG
From India, Delhi
4In our organisation (factory) one contractor has failed to make payment to their workmen. So we as principal employer or PE have taken initiative to pay the wages i.e. salary dues, pf dues and esi dues, u/s 21(4). now contractor is pressing us to pay the full and final dues to their workmen and adjust from their bill. Our management stand is not to enter into settlement of full and final dues as it is a matter between contractor and their workmen. Only the statutory payments like salary pf and esi may be paid by PE.
please guide on the same. Is it so that payment directly made by PE on account of full & final may invoke the concept of sham and camouflage to us.
Rgds,
DG
From India, Delhi
No, As per as the Act PE liable under so your " ONLY " F & F settlment payment will not make the Contract Sham & bonus
You can take below precautions.
1) can take written request from the Contractor for F & F settlement the Contract employees.
2) Give written notice to contractor along with acknowledgment NOC from contractor about F & F settlement of Contract Employees.
3) After F & F settlement please ensure that you do not engage any of the Contract employee through any Contractor
4) Ensure that you make all payment through Cheque only.
Hope this will help you....!!!
From India, Pune
You can take below precautions.
1) can take written request from the Contractor for F & F settlement the Contract employees.
2) Give written notice to contractor along with acknowledgment NOC from contractor about F & F settlement of Contract Employees.
3) After F & F settlement please ensure that you do not engage any of the Contract employee through any Contractor
4) Ensure that you make all payment through Cheque only.
Hope this will help you....!!!
From India, Pune
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Full n final settlement.doc