No Tags Found!


Dear Friends,

Below are sections 20 and 21 of CLRA for your review and conclusions on the bonus liability of PE.

"20. Liability of principal employer in certain cases:

(1) If any amenity required to be provided under sections 16, 17, 18, or 19 for the benefit of the contract labor employed in an establishment is not provided by the contractor within the prescribed time, the principal employer shall provide such amenity within the specified time.

(2) All expenses incurred by the principal employer in providing the amenity may be recovered from the contractor, either by deduction from any amount payable under the contract or as a debt.

21. Responsibility for payment of wages:

(1) A contractor is responsible for paying wages to each worker employed as contract labor within the prescribed period.

(2) The principal employer must nominate a duly authorized representative to be present during wage disbursement by the contractor. It is the duty of this representative to certify the wages paid.

(3) The contractor must ensure wage disbursement in the presence of the authorized representative of the principal employer.

(4) If the contractor fails to pay wages within the specified period or underpays, the principal employer is liable to pay the full wages or the outstanding balance due to the contract labor. The principal employer can recover this amount from the contractor as a debt or by deduction from any payable amount under the contract."

Thank you.

From India, Mumbai
Acknowledge(0)
Amend(0)

Dear Punchbala

I appreciate your work for replying these questions ,the same movement members should try to find out the general answers themselves

after taking little pain of reading the concern act.

tks dear


From India, Delhi
Acknowledge(0)
Amend(0)

nathrao
3180

Emerging trends in hiring of labor show that contractual labor has become an important avenue for industries. This article from Business Standard is worth reading: [Radhicka Kapoor & P P Krishnapriya: Doing away with unequal contracts | Business Standard Column](http://www.business-standard.com/article/opinion/radhicka-kapoor-p-p-krishnapriya-doing-away-with-unequal-contracts-115091900718_1.html) and comments by readers.
From India, Pune
Acknowledge(0)
Amend(0)

Mr. Umakanthan.M,

I appreciate the depth of your reasoning in the discussion. It indicates your passion for the subject and your involvement in the work.

I have a query. The contractors' association and the contract labor unions have a wage agreement before the DLC. The agreement witnesses an enhancement of certain allowances from the previous agreement. It continues to be applicable to all those persons and trades who were receiving the allowance during the tenure of the previous agreement. Drivers of outsourced vehicles never received such an allowance, which is specific to dusty areas.

Now, drivers of outsourced vehicles have filed a complaint and are claiming the allowance. PE stated that it was never paid and it was not applicable, as drivers are not working in the factory area. The agreement does not mention any trade.

Do you think the allowance is payable?

KS Murthy

From India, Changanacheri
Acknowledge(0)
Amend(0)

Dear Murthy,

Even though a settlement/agreement makes no mention of the trade in which a particular category of workmen, i.e., in this case, contract labor, is employed, any allowance granted pertaining to the special nature of duties will be applicable only to those engaged in such work and not to others. Therefore, in my opinion, contract drivers cannot stake their claim for a dust allowance.

From India, Salem
Acknowledge(0)
Amend(0)

Hi All,

I have a doubt about the casual employees employed. Can they be involved in the core processes of any factory? Is there any law that states they are not permitted to do core processes?

Kindly provide a valuable answer at the earliest.

Thank you.

Regards,
Smita

From India, Gurgaon
Acknowledge(0)
Amend(0)

Dear Sir, We have 7 workers working as contractors. The contractor has only 7 workers and is working only for us. Are they covered under ESI ACT. Request your guidance pl. B Vijayakrishnan 9094007603
From India, Madras
Acknowledge(0)
Amend(0)

Dear Smita ji,

Your query pertains to Casual Employees and not Contract Employees under CLRA.

First, you need to understand the term 'casual employee.' A casual employee is someone engaged on a non-regular basis with no systematic working hours. There is no guarantee for them to get work, not even for definite hours.

Apart from casual employees, there are employees engaged to cover leave vacancies or in place of absent employees. For example, in textile mills in Mumbai, there was a system of 'badli employees' who were supposed to remain present at the gate at the beginning of every shift with no guarantee of work.

Nowhere in any Labour Law is it mentioned that such casual employees, temporary employees, badli employees, or leave vacancy employees should not be engaged in core activities, to my knowledge.

You need to answer this: if a skilled employee engaged in a core activity remains absent, can I not engage a casual employee who can perform this core activity and avoid production loss?

From India, Mumbai
Acknowledge(0)
Amend(0)

Dear Sir,

We have 8 contractors, each having 7-8 workers engaged in our industry. Does each contractor need to take a license from the labor department? Do we need to take a certificate of registration from the labor department? Do these workers fall under the PF Act, ESI Act, Payment of Bonus Act, and Payment of Gratuity Act?

Please clarify.

M. Srinivas
Bhimavaram

From India, Hyderabad
Acknowledge(0)
Amend(0)

Dear Srinivas,

Strictly speaking, contractors having fewer than 20 workers engaged in the particular work of the Principal Employer need not take a contractor's license under the CLRA Act, 1970; but the Principal Employer has to obtain a registration certificate under the Act.

From India, Salem
Acknowledge(0)
Amend(0)

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.