Dear Sir,
we have hired contract employees .all payments were routed through contractor . company wants to given some incentive to contract employees directly. can the company pay directly to contract employee or it should be routed through Contract employee
Regards
A.Jagadish

From India, Bangalore
Dear Jagdish,
If the contract is genuine in all respects, it is better to make payments of every kind through the contractor only. Otherwise it would be a pointer to the fact of the contract being a ruse or sham.Incentives can not be viewed as an exclusive benefit available to regular workmen; at times contract workmen may also be given as a measure of motivation to improve their productivity. But it may send wrong signals of suspicion to both the CL and the contractor If paid directly thereby avoiding the contractor. Better think twice before taking a decision.

From India, Salem
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