Is the Principal Employer liable to pay equal remuneration to its contract labours if the contractor fails to pay the same? Is there any authority on this issue?
TANYA NANDA (Associate) 16 December 2013
Is the Principal Employer liable to pay equal remuneration to its contract labours if the contractor fails to pay the same? Is there any authority on this issue?
Simi Salooja (Legal Secretary) 16 December 2013
Dear Tanya..
This would depend on the contract terms that you had with the contractor or the labour of the contractor..
Regards
Adv Simi
Mumbai
TANYA NANDA (Associate) 16 December 2013
Dear Simi,
Thank you for your reply.
Although contracts do determine the liability of Principal Employer/Contractor regarding payment of wages to the contract labours but there are certain statutory compulsions as well. For instance, under section 21 of the Contract Labour (Regulation and Abolition) Act, 1970, it is the duty of the Principal Employer to ensure payment of wages to the contract labours in case the Contractor fails to pay the same. So my question was, whether the principle employer liable to ensure payment of equal remuneration to the contract labours in case the contractor fails to ensure the same under section 21 of the Act.
Hope that clarifies my query a little better.