Sirs, "The contractor has submitted monthly bills and there is a delay in the process from the principal employer 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 in 1st week / before the 7th of the next month."
What should we do as a principal employer?
From India, Gandhinagar
What should we do as a principal employer?
From India, Gandhinagar
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 some how to manage the salary but if the contractor is doing only for little client then it would be a problem for them to disburse the salary.
Contractor make profit mainly by the service tax only since today every company agrees to pay only the minimum wages for the position and also they are very keen on PF and ESI where the principal employer is responsible also earlier days some of the contractors made money by not paying correct ESI / PF for the contract employees. so only today PF / ESI dept is very strict on the contribution and also ensure principal employer is also liable/responsible for the payment of wages, ESI / PF contribution to the employees of contract labors.
So as a principal employer you have to credit the monthly amount to the contractor so taht he disburse the salary to his employees without any problem or delay.
From India, Mumbai
188If he is a large contractor then he would rotate the fund by adjusting some how to manage the salary but if the contractor is doing only for little client then it would be a problem for them to disburse the salary.
Contractor make profit mainly by the service tax only since today every company agrees to pay only the minimum wages for the position and also they are very keen on PF and ESI where the principal employer is responsible also earlier days some of the contractors made money by not paying correct ESI / PF for the contract employees. so only today PF / ESI dept is very strict on the contribution and also ensure principal employer is also liable/responsible for the payment of wages, ESI / PF contribution to the employees of contract labors.
So as a principal employer you have to credit the monthly amount to the contractor so taht he disburse the salary to his employees without any problem or delay.
From India, Mumbai
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
From India, Gandhinagar
Non compliance is because the contractor is not paid on time. If the principal employer has paid on time and if the contractor has not given the salary then you can take action against the contractor.
But here it is purely the mistake of principal employer who has to take the blame and solve the issue and support the contractor to disburse the salary to their employees.
From India, Mumbai
But here it is purely the mistake of principal employer who has to take the blame and solve the issue and support the contractor to disburse the salary to their employees.
From India, Mumbai
Hi what are the revise minimum wage of Karnataka.(Regarding to September 2011 middle revise and 2011 to 2012)
From India, Mumbai
From India, Mumbai
Dear All,
Principal employer is Responsible for Delay in wages disbursment of contract labour.
& for that verious copmanies is formed policy of Security diposit of Contractor for any kind of non complience / libelity.
so it is the better option for timely disbursement of contract labour wages.
Regards,
From India, Nasik
Principal employer is Responsible for Delay in wages disbursment of contract labour.
& for that verious copmanies is formed policy of Security diposit of Contractor for any kind of non complience / libelity.
so it is the better option for timely disbursement of contract labour wages.
Regards,
From India, Nasik
This is perfectly alright. However such contract when agreed mutually are not binding on principal employed to make timely payment to contractor.
In such cases, contractor is liable for pay the dues to his worker.
Regards
S K Priyadarshi
From India, Delhi
In such cases, contractor is liable for pay the dues to his worker.
Regards
S K Priyadarshi
From India, Delhi
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
From India, Kolkata
Any contract between 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 Contractor on or before 07th of every month if the number of employees in the organisation is less than 1000 and on or before 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 release of payment on or before of 07th or 10th of the succeeding month.
Payment of wages to the employees engaged by 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, Master Servant relationship exists only between the Contractor and his employees.
May be you can think of penalising the Contractor a token amount so that submission of bills are done within 3 working days.
From the Principal Employer side, you need to ensure that the authorisation of bills by your officials and payment of bills by your Finance is done atleast on 06th or 09th of every month, so that the Contractor can release fhe payment on 07th or 10th of every month.
Regards
MVK
From India, Madras
The Principal Employer must release the payment to Contractor on or before 07th of every month if the number of employees in the organisation is less than 1000 and on or before 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 release of payment on or before of 07th or 10th of the succeeding month.
Payment of wages to the employees engaged by 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, Master Servant relationship exists only between the Contractor and his employees.
May be you can think of penalising the Contractor a token amount so that submission of bills are done within 3 working days.
From the Principal Employer side, you need to ensure that the authorisation of bills by your officials and payment of bills by your Finance is done atleast on 06th or 09th of every month, so that the Contractor can release fhe payment on 07th or 10th of every month.
Regards
MVK
From India, Madras
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