I want a clarification about the following:
Mr. 'X' is working as a contract worker under M/s 'A' co.
M/s 'B' co. is a direct contractor of M/s 'XYZ' co. (owner)
M/s 'A' co. is an approved subcontractor of M/s 'B' co. which is approved by M/s 'XYZ' co. (owner)
The agency M/s 'C' co. which is a third-party agency of M/s A co. is paying salary/wages to Mr. X who is working for M/s A co.
Is it legally correct under the CLRA Act and the Payment of Wages Act?
Please explain.
From India, Bhubaneswar
Mr. 'X' is working as a contract worker under M/s 'A' co.
M/s 'B' co. is a direct contractor of M/s 'XYZ' co. (owner)
M/s 'A' co. is an approved subcontractor of M/s 'B' co. which is approved by M/s 'XYZ' co. (owner)
The agency M/s 'C' co. which is a third-party agency of M/s A co. is paying salary/wages to Mr. X who is working for M/s A co.
Is it legally correct under the CLRA Act and the Payment of Wages Act?
Please explain.
From India, Bhubaneswar
This will not be an issue so long Mr. X is get paid as per law of the land, all statutory compliances ( PF, ESI, PTAX etc.) are done properly.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
From India, New Delhi
336S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
From India, New Delhi
Mr Nayak,
. 'X' is working as a contract worker under M/s 'A' co. who is a sub-contractor of M/s 'B' co. of Principal Employer M/s 'XYZ' co.
The payment by agency M/s 'C' co. is illegal, under the CLRA Act. Because M/s C is not an employer or a body recognized by M/s XYZ,Co. In case of unpaid wages or any violation in any manner then M/s 'A' co. & M/s 'B' co. shall be held responsible by the Principal Employer M/s 'XYZ' co but not M/s C.
Further, all three M/s 'A' co., M/s 'B' co. and M/s 'XYZ' co. shall remain liable for any legal action by the statutory authority incase of violation to CLR Act & Payment of wages Act.
From India, Mumbai
. 'X' is working as a contract worker under M/s 'A' co. who is a sub-contractor of M/s 'B' co. of Principal Employer M/s 'XYZ' co.
The payment by agency M/s 'C' co. is illegal, under the CLRA Act. Because M/s C is not an employer or a body recognized by M/s XYZ,Co. In case of unpaid wages or any violation in any manner then M/s 'A' co. & M/s 'B' co. shall be held responsible by the Principal Employer M/s 'XYZ' co but not M/s C.
Further, all three M/s 'A' co., M/s 'B' co. and M/s 'XYZ' co. shall remain liable for any legal action by the statutory authority incase of violation to CLR Act & Payment of wages Act.
From India, Mumbai
Mr. X is contract worker of M/s. A and M/s. C is contractor of M/s. A who is paying salary and compliance for Mr. X. In the original post it is no where mentioned that Mr. X is working for original PE M/s. XYZ. There may be many other jobs of M/s. A for which they have engaged contractor M/s. C who have engaged Mr. X for the job.
To my opinion nothing wrong in it so long payment and compliance are done properly.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
To my opinion nothing wrong in it so long payment and compliance are done properly.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
Your status of the Question and matter is as under:
M/s 'XYZ' co. (owner)
Appoints Direct Contractor M/s 'B'
M/s. B company sub-contractor M/s.A company.
M/s 'A' co.-approved contractor but Sub-contractor to M/s.B -company.
Mr. 'X' is working as a contract worker for the Sub-contractor M/s.A company.
The agency M/s 'C' co. which is a TPA-for M/s.A -Sub-contractor - their job just make payment of Wages/Salary as approved by M/s.A.
Is it legally correct under the CLRA Act and the Payment of Wages Act?
In any case M/s. XYZ Co. the Owner is responsible for the payment of Salary/Wates/remuneration to Mr.X the worker- under whom he works doesn't matter.
As per my knowledge M/s-C paying Salary - just a job work for the Company "X".
Even if under M/s.C -Company provided as manpower supply for to M/s.X, the owner is fully responsible for all the liability arising out of during on the site by the employee.
After the Owner appointing First Contractor, he is the main contractor.
Subsequent every one is called Sub-Contractor,
Though they hold license or company or LLP or any thing and registered wherever they are - they are called Sub-Contractor to First M/s.X. Company who is the Main Contractor get a contract from the Owner M/sXYZ.
Directly the Owner is responsible for the payment of Wages/Salary as they all work in his project.
If the worker is not paid due to financial problem or dispute with any Company in between - the workmen should be paid by the Owner and get the amount deducted from the work Invoice for payment to M/s. B.
This will be considered as direct payment by the Owner on the account first Contractor appointed by him and get deducted from their dues. First Creditor is Workers Salary/Wages.
Remember do not call approved contractor when any company has taken sub-contract work from another contractor.
Some time, it so happen that, the Sub-contractor company do not agree to get paid by the Main Contractor.
But they want direct payment from the Owner only.
Because at many times, these Main Contractor collect money as per work done by the Sub-Contractor but they don't promptly make full payment whatever is received. These kind of problem persists in the Industry.
The Financial Title is First Main Contractor, a contract for piece meal work from the Main contract is called Sub-Contractor.
A company may have direct Main Contract work from a Owner, and also Sub-Contract work from a Main Contractor for a project.
Approved Contractor - the title is mainly for Govt Work where they specify that the Sub-Contractor if appointed should hold a license from the Govt for carrying out work of similar nature and registered and license valid at all time till the completion of the Contract.
If any company directly appoint a contract for a work then only they are called contractor.
From Saudi Arabia
M/s 'XYZ' co. (owner)
Appoints Direct Contractor M/s 'B'
M/s. B company sub-contractor M/s.A company.
M/s 'A' co.-approved contractor but Sub-contractor to M/s.B -company.
Mr. 'X' is working as a contract worker for the Sub-contractor M/s.A company.
The agency M/s 'C' co. which is a TPA-for M/s.A -Sub-contractor - their job just make payment of Wages/Salary as approved by M/s.A.
Is it legally correct under the CLRA Act and the Payment of Wages Act?
In any case M/s. XYZ Co. the Owner is responsible for the payment of Salary/Wates/remuneration to Mr.X the worker- under whom he works doesn't matter.
As per my knowledge M/s-C paying Salary - just a job work for the Company "X".
Even if under M/s.C -Company provided as manpower supply for to M/s.X, the owner is fully responsible for all the liability arising out of during on the site by the employee.
After the Owner appointing First Contractor, he is the main contractor.
Subsequent every one is called Sub-Contractor,
Though they hold license or company or LLP or any thing and registered wherever they are - they are called Sub-Contractor to First M/s.X. Company who is the Main Contractor get a contract from the Owner M/sXYZ.
Directly the Owner is responsible for the payment of Wages/Salary as they all work in his project.
If the worker is not paid due to financial problem or dispute with any Company in between - the workmen should be paid by the Owner and get the amount deducted from the work Invoice for payment to M/s. B.
This will be considered as direct payment by the Owner on the account first Contractor appointed by him and get deducted from their dues. First Creditor is Workers Salary/Wages.
Remember do not call approved contractor when any company has taken sub-contract work from another contractor.
Some time, it so happen that, the Sub-contractor company do not agree to get paid by the Main Contractor.
But they want direct payment from the Owner only.
Because at many times, these Main Contractor collect money as per work done by the Sub-Contractor but they don't promptly make full payment whatever is received. These kind of problem persists in the Industry.
The Financial Title is First Main Contractor, a contract for piece meal work from the Main contract is called Sub-Contractor.
A company may have direct Main Contract work from a Owner, and also Sub-Contract work from a Main Contractor for a project.
Approved Contractor - the title is mainly for Govt Work where they specify that the Sub-Contractor if appointed should hold a license from the Govt for carrying out work of similar nature and registered and license valid at all time till the completion of the Contract.
If any company directly appoint a contract for a work then only they are called contractor.
From Saudi Arabia
Dear colleagues, we should follow the dictum of Act & Rules framed.
1. The Principal Employer takes registration from Labour Department for engagement of workmen in his establishment under the CL(R&A) Act.
2.Then, the Principal Employer engages contractor to do certain works in his establishment. The PE issue Form V to the contractor enable him to obtain license from labour department. {FORM V
[See Rule 12(2)] Form of Certificate by Principal Employer
Certified that I have engaged the applicant----------------------- нннннннннннннннннннннннннннннннннннннннн as a contractor in my establishment. I undertake to be bound by all the provisions of the contract labour(Regulation and Abolition) Act, 1970 and the contract Labour Regulation and Abolition) ABC state Rules 197--, in so far as the provisions are applicable to me respect of the employment of contract labour by the applicant in my establishment.}
3. In, similar fashion Form V issued to a sub-contractor by Principal Employer
[Certified that I have engaged the applicant M/s B Co нннннннннннннннннннннннннннннннннннннннн as a sub-contractor of M/s A Co. нннннннннннннннннннннннннннннннннннннннн is a contractor in my establishment. I undertake to be bound by all the provisions of the contract labour(Regulation and Abolition) Act, 1970 and the contract Labour Regulation and Abolition) X state Rules 197--, in so far as the provisions are applicable to me respect of the employment of contract labour by the applicant in my establishment.]
issued to a sub-contractor if 20 or more workmen are being engaged.
Therefore, Contractor or Sub-contractor shall be held liable by the authority and Principal Employer in case of non-compliance by the Contractor or Sub-contractor i.e., ( M/s B Co, M/s A Co). M/s C Co is mere a stranger because M/s C Co is non-existent in the scene.
Regards
From India, Mumbai
1. The Principal Employer takes registration from Labour Department for engagement of workmen in his establishment under the CL(R&A) Act.
2.Then, the Principal Employer engages contractor to do certain works in his establishment. The PE issue Form V to the contractor enable him to obtain license from labour department. {FORM V
[See Rule 12(2)] Form of Certificate by Principal Employer
Certified that I have engaged the applicant----------------------- нннннннннннннннннннннннннннннннннннннннн as a contractor in my establishment. I undertake to be bound by all the provisions of the contract labour(Regulation and Abolition) Act, 1970 and the contract Labour Regulation and Abolition) ABC state Rules 197--, in so far as the provisions are applicable to me respect of the employment of contract labour by the applicant in my establishment.}
3. In, similar fashion Form V issued to a sub-contractor by Principal Employer
[Certified that I have engaged the applicant M/s B Co нннннннннннннннннннннннннннннннннннннннн as a sub-contractor of M/s A Co. нннннннннннннннннннннннннннннннннннннннн is a contractor in my establishment. I undertake to be bound by all the provisions of the contract labour(Regulation and Abolition) Act, 1970 and the contract Labour Regulation and Abolition) X state Rules 197--, in so far as the provisions are applicable to me respect of the employment of contract labour by the applicant in my establishment.]
issued to a sub-contractor if 20 or more workmen are being engaged.
Therefore, Contractor or Sub-contractor shall be held liable by the authority and Principal Employer in case of non-compliance by the Contractor or Sub-contractor i.e., ( M/s B Co, M/s A Co). M/s C Co is mere a stranger because M/s C Co is non-existent in the scene.
Regards
From India, Mumbai
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Minimum wage Security Agency 2014-15.pdf