We are a manufacturing industry, can we transfer the payment of wages directly from company account to the contract workman working on daily basis through contractor.
From India, Delhi
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From India, Delhi
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Direct payment of wages to contract labor shall be done only in special circumstances, such as non-payment of salary by the contractor. If done on a regular basis, it may lead to the contract being deemed as a sham, which carries significant legal risks.
From India, Kannur
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4766From India, Kannur
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It is not advisable to transfer money from the company to contractor workmen, as this shall form a direct employee-employer relationship between the company and contractor workmen, thereby indemnifying your contractor from his statutory obligations towards his workmen. Why do you want to do this? As a principal employer, you have a number of responsibilities. Why do you want to shoulder this burden also?
You pay your contractor's monthly bill. Let him pay salaries/wages to his workmen.
From India, Aizawl
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You pay your contractor's monthly bill. Let him pay salaries/wages to his workmen.
From India, Aizawl
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To ensure proper payment of wages, you may pass the bill of the contractor after ensuring payment of wages to the workers as per the Minimum Wages Act and also payment of legal dues of PF, ESI, PT, etc. by the contractor. If the contractor fails to produce the above documents along with the bill, then you may hold his bill. If there is any underpayment or non-payment, then only you can exercise your power under Section 21(4) of the Contract Labour (R & A) Act, 1970, and pay the due amount to the worker.
When you have engaged a contractor, let him perform his duties as a contractor. Direct payment of wages to contract laborers every month by the Principal Employer will invite problems regarding the demand for regularization of contract laborers in your company, as rightly advised by the knowledgeable friends above.
From India, Pune
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When you have engaged a contractor, let him perform his duties as a contractor. Direct payment of wages to contract laborers every month by the Principal Employer will invite problems regarding the demand for regularization of contract laborers in your company, as rightly advised by the knowledgeable friends above.
From India, Pune
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You should not transfer any wages or any payment directly to the bank account of workers of the contractor. If you do that, it will create problems in the future, i.e., the employees of the contractor will claim that they are the employees of the principal employer. If the contractor terminates their services, they can raise an industrial dispute against the principal employer. The Labour Court, in such cases, treats the contract as sham and can order reinstatement in the services of the principal employer.
Likewise, the employee can raise a claim under the Payment of Wages Act, Minimum Wages Act, or Payment of Gratuity Act against the principal employer.
- Shobhit Kumar Mittal
Labour & Industrial Law Advisor
Delhi/NCR
8077779793, 9319956443
From India, Faridabad
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Likewise, the employee can raise a claim under the Payment of Wages Act, Minimum Wages Act, or Payment of Gratuity Act against the principal employer.
- Shobhit Kumar Mittal
Labour & Industrial Law Advisor
Delhi/NCR
8077779793, 9319956443
From India, Faridabad
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PF Online Transfer.pdf
Steps to transfer PF amount.jpg