My company had filed 'Form D' for company workers, and the HR manager says that the contractor has to file/submit 'Form D' for contract workers, and the company is not liable. The company pays bonuses to contractors, which the contractors then pay to their workers, so the company is paying indirectly.
What if the contractor fails to submit the 'Form D'? Is the company liable to file itself in this case or just ensure that the contractor has filed? What if the contractor fails to file 'Form D' as well as the penalty for that? Consider that most contractors are not older than 5 years.
Kindly give me an answer for this ASAP. Thanks in advance.
From India, Vadodara
What if the contractor fails to submit the 'Form D'? Is the company liable to file itself in this case or just ensure that the contractor has filed? What if the contractor fails to file 'Form D' as well as the penalty for that? Consider that most contractors are not older than 5 years.
Kindly give me an answer for this ASAP. Thanks in advance.
From India, Vadodara
Dear Ano... The employer i.e. the contractor should file form D as a Principal employer your company shall ensure the compliance. Shailesh Parikh 99 98 97 10 65 Vadodara
From India, Mumbai
From India, Mumbai
yes , That is clear ..but what if the contractor has not filed? As a principle employer do we have any penalty upon us?
From India, Vadodara
From India, Vadodara
As per the Payment of Bonus Act 1965, the principal employer owes no responsibility for compliance with the Act by the contractor. It is only the contractor who can be held responsible under the Act. However, from an industrial relations (IR) point of view, the principal employer takes an active interest in ensuring due compliance by the contractor.
From India, Mumbai
From India, Mumbai
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