If any contractor provided contract labor to two principal employers and one of the workers worked for both principal employers for 10 and 20 days respectively in the same month, will the contractor issue two wage slips to the worker as per CLRA Form XIX or a single wage slip with the mention of both principal employers' names and locations.
Is it necessary to keep copies of wage slips by principal employers?
What if the worker is getting a different daily rate at both locations? If a single wage slip needs to be issued, then how should the daily rate be handled in that case?
Looking forward to inputs from seniors in this forum.
From India, Delhi
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1Is it necessary to keep copies of wage slips by principal employers?
What if the worker is getting a different daily rate at both locations? If a single wage slip needs to be issued, then how should the daily rate be handled in that case?
Looking forward to inputs from seniors in this forum.
From India, Delhi
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Between the contractor and the workman, there exists an employer-employee relationship. The plant where the worker is sent for work is immaterial to him. If he has worked for 26/30 days, he will receive a payslip from his employer indicating the number of days worked in each plant. This payslip may comply with the relevant Act applicable to his organization, such as the Shops and Commercial Establishments Act, and not necessarily in Form XIX under the CLRA Act. It will detail the establishment's name (contractor's establishment) and specifics like the number of days worked, overtime hours, etc. An employee will receive only one payslip even if working in different plants for different principal employers.
It is not necessary for the principal employer to collect and retain copies of payslips from workers engaged by the contractor; a declaration from the contractor suffices. The principal employer is only concerned with wage payment for the period the worker worked in their plant and cannot intervene in payments for engagements elsewhere. The ESI and PF challans also display the total payout and contributions without individual breakdowns for each principal employer. By verifying if the total days in the ECR match or exceed the days each worker worked for them, the principal employer can ensure compliance. This oversight is considered adequate.
From India, Kannur
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It is not necessary for the principal employer to collect and retain copies of payslips from workers engaged by the contractor; a declaration from the contractor suffices. The principal employer is only concerned with wage payment for the period the worker worked in their plant and cannot intervene in payments for engagements elsewhere. The ESI and PF challans also display the total payout and contributions without individual breakdowns for each principal employer. By verifying if the total days in the ECR match or exceed the days each worker worked for them, the principal employer can ensure compliance. This oversight is considered adequate.
From India, Kannur
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Contractors need to maintain the muster roll for each establishment separately. Based on the number of days mentioned in the muster roll, wages shall be paid for each establishment, and payslips shall be maintained separately for each establishment.
It is not mandatory for the principal employer to maintain payslips of contract labor, but it is still recommended. Wages can vary from one establishment to another as the minimum wages vary based on the scheduled industry and location. However, the contractor cannot reduce the wages of a worker if they are transferring from one location to another.
It is better to maintain these records to ensure compliance.
From India, Bangalore
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It is not mandatory for the principal employer to maintain payslips of contract labor, but it is still recommended. Wages can vary from one establishment to another as the minimum wages vary based on the scheduled industry and location. However, the contractor cannot reduce the wages of a worker if they are transferring from one location to another.
It is better to maintain these records to ensure compliance.
From India, Bangalore
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Contractors engage contract labor, which may work for more than one organization. The relationship between a contractor and its employees is an employer-employee relation. Contractors receive business from various PEs under different terms and conditions. However, the contractor, as the employer, pays the contract labor, and one payslip is sufficient.
In the case of manpower supply, when employers set different remuneration for contract labor, it should be based on the number of days worked and a per day rate for a specific period, all consolidated into one payslip.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions +91 98310 81531 skb@usdhrs.in USD HR Solutions – To strive towards excellence with effort and integrity
From India, New Delhi
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In the case of manpower supply, when employers set different remuneration for contract labor, it should be based on the number of days worked and a per day rate for a specific period, all consolidated into one payslip.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions +91 98310 81531 skb@usdhrs.in USD HR Solutions – To strive towards excellence with effort and integrity
From India, New Delhi
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The contractor has to make a separate muster roll for each establishment. Therefore, the contractor has to prepare a separate wage slip for each establishment. One wage slip for fixed wages. If the contractor is registered under shops and commercial establishment and is supplying manpower to different agencies. For clarity, call 8093097934.
From India, Mumbai
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From India, Mumbai
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Thanks for the responses. However, opinion seems divided on this issue. It will be helpful if anyone can refer to any rules, notifications, or any other references that can provide clarity from a legal perspective.
Can a contractor issue multiple payslips against each establishment and provide one consolidated annexure for reference to contract workers?
From India, Delhi
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Can a contractor issue multiple payslips against each establishment and provide one consolidated annexure for reference to contract workers?
From India, Delhi
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Mr. Anonymous,
All the members have provided the correct suggestions in accordance with the law after reviewing the poster's question. It is natural to have differing opinions, as the answer can change based on the circumstances.
Therefore, it is advisable to consult with someone over the phone to receive the correct guidance. I have shared my number in a previous post for this purpose.
From India, Mumbai
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All the members have provided the correct suggestions in accordance with the law after reviewing the poster's question. It is natural to have differing opinions, as the answer can change based on the circumstances.
Therefore, it is advisable to consult with someone over the phone to receive the correct guidance. I have shared my number in a previous post for this purpose.
From India, Mumbai
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FORM XIX-Wage Slip.pdf