Liability of contractor and principal employer

anshul sangal (Querist) 05 January 2011 This query is : Resolved
When a contractor is liable for payment of wages to the contract labour and when principal employer is liable for payment of wages to the contract labour?Please clarify these two concept ?Please give some case law on these two concept?

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Ajay Bansal (Expert) 05 January 2011
It depens on facts and circumstances of written/oral agreement between parties.

Kirti Kar Tripathi (Expert) 05 January 2011
Under the provisions of Contract Labour (Regulation and Abolition) Act, making payment to workman is of Contractor under the supervision of Principal Employer but in case, contractor does not pay he same the employer is liable to pay. However, he has a right to indemnify the same from the amount payable by him to the Contractor. But the Principal employer can not escape from his liability to ensure the payment of workmen so employed through Contractor.