Dear Team,
This is dinesh working at TATA International limited, chennai. I have a doubt on Contract labour act. We have 3 contractors working for us and among them two of them never give us the statutory challans and registers . Therefore we are holding their payment for last 3 months.
Is it legally acceptable ?
If so can you send me any judgement copies for it !
R.Dinesh
9092710970
From India, Madras
15This is dinesh working at TATA International limited, chennai. I have a doubt on Contract labour act. We have 3 contractors working for us and among them two of them never give us the statutory challans and registers . Therefore we are holding their payment for last 3 months.
Is it legally acceptable ?
If so can you send me any judgement copies for it !
R.Dinesh
9092710970
From India, Madras
Dear Dinesh,
It is obligatory for the contractor to pay statutory payments and submit the copy of same to principal employer. In case contractor fails to do so , principal employer is held responsible. Therefore either speak to them otherwise look for some other contractor.
From India, Mumbai
It is obligatory for the contractor to pay statutory payments and submit the copy of same to principal employer. In case contractor fails to do so , principal employer is held responsible. Therefore either speak to them otherwise look for some other contractor.
From India, Mumbai
Dear
we cant hold the check for the purpose of non submission of statutory compliance. but you can hold some more percentage as retention. the statutory compliance will be on the principle employer only whether contractor is complying it or not. it is always better to fix the rate of wages/ measurement rate excluding and statutory part to be cleared by the contractor or PE
Lakshminarayanan
From India, New Delhi
we cant hold the check for the purpose of non submission of statutory compliance. but you can hold some more percentage as retention. the statutory compliance will be on the principle employer only whether contractor is complying it or not. it is always better to fix the rate of wages/ measurement rate excluding and statutory part to be cleared by the contractor or PE
Lakshminarayanan
From India, New Delhi
Dear Dinesh ji,
Holding of the Contractor payment is meaning less. First, since 3 months how the contractor has kept quite ? Please check weather the contractor has pay the wages to the contract labour, has he remitted the PF.ESI, Professional Tax etc. If he fails to that the employer has responsible. Before issueing the work order you should clearly mentioned all these things.
Regards,
PBS KUMAR
From India, Kakinada
Holding of the Contractor payment is meaning less. First, since 3 months how the contractor has kept quite ? Please check weather the contractor has pay the wages to the contract labour, has he remitted the PF.ESI, Professional Tax etc. If he fails to that the employer has responsible. Before issueing the work order you should clearly mentioned all these things.
Regards,
PBS KUMAR
From India, Kakinada
Dear Dinesh Ji,
You can hold the payment of the contractor, but ensure that the employees/workers working in your establishment must be paid wages and they should get other fascilities as required under law. If your contractor is not providing the fascilities as per law to their employees/workers, you can provide the fascilities rather you must provide the fascilities as per law being the principle employer and you can adjust the amount spend from the bills of the contractor.
V.K.Gupta
From India, Delhi
You can hold the payment of the contractor, but ensure that the employees/workers working in your establishment must be paid wages and they should get other fascilities as required under law. If your contractor is not providing the fascilities as per law to their employees/workers, you can provide the fascilities rather you must provide the fascilities as per law being the principle employer and you can adjust the amount spend from the bills of the contractor.
V.K.Gupta
From India, Delhi
Re: Contractors Cheque holding ?
Dear Mr. Dinesh
Please go though the work contract terms with regard to statutory comliances, if it speaks, just assess the liability of the contractors towards the head and withhold the amount. It may also be recovered from the bills of the contractor in case of falure on his/her part to pay wages or to provide facilities to employees engaged by him. A huge amount pending against the contractor towards payment of statutory compliances can be recovered from the contractor in EMIs keeping in mind the total tenure of the contract or from the final bill. Withholdig the whole amount of the contractor shall impede the payment of wages of the contractual workers.
I'm of the opinion that contarctual worker/labour is sheer neglected part of our H R POLICIES/SYSTEM. Due to apathy on part of HR people, the unorganized manpower is more vulnerable for exploitation despite of statute in force viz Labour Act (R&A), 1970.
For relevant judgements on the subject matter please refer the jouenal "Labour Law Reporter"
RKSINGH
From India, Delhi
Dear Mr. Dinesh
Please go though the work contract terms with regard to statutory comliances, if it speaks, just assess the liability of the contractors towards the head and withhold the amount. It may also be recovered from the bills of the contractor in case of falure on his/her part to pay wages or to provide facilities to employees engaged by him. A huge amount pending against the contractor towards payment of statutory compliances can be recovered from the contractor in EMIs keeping in mind the total tenure of the contract or from the final bill. Withholdig the whole amount of the contractor shall impede the payment of wages of the contractual workers.
I'm of the opinion that contarctual worker/labour is sheer neglected part of our H R POLICIES/SYSTEM. Due to apathy on part of HR people, the unorganized manpower is more vulnerable for exploitation despite of statute in force viz Labour Act (R&A), 1970.
For relevant judgements on the subject matter please refer the jouenal "Labour Law Reporter"
RKSINGH
From India, Delhi
Dear Dinesh,
Helding back the contractors cheque is NOT A SOLUTION.Principal employer is held responsible for compying statutory need and salary payment for the employees. In case contrator has not paid salary to the employee-reason not got cheque- it will creat unessary head aches.You may hold back the service charge or make arragement to pay the salary and the statutory payments.
* talk and force the contractor to submit the paid challans
* look for another contror
(recently we had faced a huge scandal/problem wherein we found that statury payments were not been made for almost 1 year and the company had to incur expenses of 1.25 crores)
Awake....and act
regards
Manikumar
From India, Bangalore
Helding back the contractors cheque is NOT A SOLUTION.Principal employer is held responsible for compying statutory need and salary payment for the employees. In case contrator has not paid salary to the employee-reason not got cheque- it will creat unessary head aches.You may hold back the service charge or make arragement to pay the salary and the statutory payments.
* talk and force the contractor to submit the paid challans
* look for another contror
(recently we had faced a huge scandal/problem wherein we found that statury payments were not been made for almost 1 year and the company had to incur expenses of 1.25 crores)
Awake....and act
regards
Manikumar
From India, Bangalore
Mr Manikumar is right as just withholding the payment is not a solution; either
You make the contractor comply all compliances
Look for alternate contractor who does it.
It does happen that due to price negotitaions org. pay very competitive price to the Contractors and the contractor (almost all contractors look out for 15-25% of profit margin) then makes compromises on the wage of the workmen and the compliances are many times fiddled with.
Saurabh
From China, Leizhou
You make the contractor comply all compliances
Look for alternate contractor who does it.
It does happen that due to price negotitaions org. pay very competitive price to the Contractors and the contractor (almost all contractors look out for 15-25% of profit margin) then makes compromises on the wage of the workmen and the compliances are many times fiddled with.
Saurabh
From China, Leizhou
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
A-Role of labour contractors in global production networks -A-1 Imp..pdf
Absence of Team Leader.doc