Dual employment
Arun Singhal
(Querist) 11 January 2016
This query is : Resolved
If X company employes Certain no of employees for some job responsibilities on civil construction project and Z company also employs same group of employees for same job responsibilities on same civil construction project and Z COMPANY IS SUBCONTRACTOR OF X COPANY
Is this arrangement is legal?
And if Z company back tracks about their responsibilities for payment to vendors ,can the X company be made liable for action of Z by any Indian law.
DR.VEDULA GOPINATH
(Expert) 12 January 2016
In civil construction, such transactions do take place.
In the given example 1.X is Principal employer 2. Z company is sub-contractor.
Nothing bars if both the companies X and Z employs some employees for the same job.
As per Indian law, if Z company has not made payment to its employees, X company is liable for such payments .
X company after making such payments, the amounts can be deducted/recovered from the due payments to Z.(in running bills)
Further if any accident/injury happens to the employees hired by Z Company, during and in course of employment, X company shall be liable.
Please send me the sub-contractor agreement for review.
Dr Vedula Gopinath Senior advocte/arbitator
vgnath@gmail.com m9848227926
Arun Singhal
(Querist) 12 January 2016
SIR
I AM THANKFUL FOR YOUR VALUABLE FEED BACK THAT BOTH PRINCIPAL AND SUBCONTRACTOR CAN EMPLOY SAME EMPLOYEES.
I SHALL BE GREAT FUL IF SECOND PART OF MY QUESTION ALSO ADDRESSED WHICH IS " IF THE SUBCONTRACTOR FAILED TO BACK TRACKS AND FAILED TO FUFIL THEIR RESPONSIBILITY TOWARD PAYMENT TO VENDORS SUPPLIERS, LABOUR AND LABOUR CONTRACTOR, CAN PRINCIPAL CONTRACTOR BE HELD RESPONSIBLE FOR PAYMENT"
Arun Singhal
(Querist) 12 January 2016
SIR
IF THE PRINCIPAL CONTRACTOR EMPLOYS MR A AS PROJECT MANAGER AND MR B AS STORE IN CHARGE CAN THE SUBCONTRACTOR ALSO EMPLOY SAME MR A AS PROJECT MANAGER MR B AS STORE IN- CHARGE.
WILL THERE NOT BE CONFLICT OF INTEREST
Guest
(Expert) 12 January 2016
You have posted only academic queries without discussing the real problem.
Anyway, are you the contract employee, principal employer or a sub-contractor of the principal employer?
Rajendra K Goyal
(Expert) 12 January 2016
Author need to provide the information asked for by the expert.
S.Sankarasubramanian
(Expert) 12 January 2016
This seems to be an academic querry and full facts not given.
S.Sankarasubramanian
Sudhir Kumar, Advocate
(Expert) 12 January 2016
instead of putting algebra question better reply to Mr Dhingra and give full facts.
Arun Singhal
(Querist) 13 January 2016
DEAR SIR
I ENTERED INTO CONTACT TO CONSTRUCT HOUSING FOR ARMED FORCES ON LABOUR RATE BASIS AS SUB-SUBCONTRACTOR WITH COMPANY ABC ( hiding the name of companies for some reasons please) WORKING AS SUB-CONTRACTOR OF PRINCIPAL CONTRACTOR XYZ. THE WORK WAS AWARDED TO XYZ BY MINISTRY OF DEFENCE THROUGH DG-MAPS.
THE COMPANY ABC WAS SUBSIDIARY OF COMPANY XYZ USING COMMON BRANCH OFFICE, COMMON OFFICIALS AND WORK FORCE AT BRANCH OFFICE AND SITE AS WELL, COMMON FACILITIES, EQUIPMENT ETC.
THE MANAGING DIRECTOR MR. SK OF SUBSIDIARY COMPANY ABC WAS APPOINTED MANAGING DIRECTOR OF PARENT COMPANY XYZ FOR THIS PROJECT.
BUT MIDWAY THEY CEASED THEIR RELATIONSHIP AND COMPANY XYZ SOLD THEIR HOLDING. THE PREVIOUS ARRANGEMENT FOR USING EVERYTHING COMMON REMAINED INTACT AND MR SK CONTINUED TO WORK AS MD OF XYZ COMPANY. AFTER COMPLETION OF WORK NEITHER COMPANY ABC NOR COMPANY XYZ ARE RESPONDING ANY COMMUNICATION NOR RELEASING THE DUE PAYMENT.
NOW MY QUESTIONS
1 IS DUAL EMPLOYMENT PROVIDED BY TWO COMPANIES ON SAME WORK LEGAL?
2 CAN MR SK, WHO WORKED AS MANAGING DIRECTOR OF BOTH THE COMPANIES AND CONTROLLED THE WORKING OF THE COMPANIES ON DAY TO DAY BASIS BE MADE LIABLE?
3 IS NON COMMUNICATION OF STATUS AFTER BOTH ENDED THEIR RELATIONSHIP TO ME AND OTHERS BREACH OF TRUST, CONTRACT AND BUSINESS OBLIGATIONS?
4 ANY LAW BY VIRTUE OF WHICH WE CAN GET OUR DUE PAYMENT?
Dr J C Vashista
(Expert) 15 January 2016
Mr. Arun Singhal,
1. Once the principle company (XYZ)has sold its stake to another company (say PQR) it is for the new company PQR to retain the sub-contractor (ABC)and honour the commitment/agreement made/executed by the outgoing company XYZ or to terminate the commitment/agreement.
2. The employee of ABC was liable and answerable to XYZ besides ABC and not PQR.
3. As rightly observed, analysed and pointed out by Sh.PS Dhingra, your query is still based on peremutation and comibation giving academic colour.
4.Consult and engage a local prudent lawyer for proper guidance and advise.
T. Kalaiselvan, Advocate
(Expert) 16 January 2016
I agree with the views of expert Dr. J.C. Vashista. The author may look for proper opinion with personal consultation with a local lawyer by producing the relevant papers before him/her.
K.S.Srinivas
(Expert) 24 January 2016
I go with the expert Dr.J.C.Vashista.
