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praveen kumar (LEGAL MANAGER)     22 October 2014

Recovery from contractor

dear members


In my company a contract labourer met with an unfortunate accident. He was given proper treatment at hospital by us and is now recovering.

Question arose of payment of compensation under section 12 (1) r/w Sec. 3(1) of the employees ' Compensation Act . The Contractor when contacted has in written submitted his inability to pay due to financial stringency. We understand that as Principal Employer we are liable to pay BUT can we recover the amount from contractor. 

QN. What are the valid means to recover from such Contractors?

 

Kindly throw some light.

 

regards



Learning

 3 Replies

Sudhir Kumar, Advocate (Advocate)     22 October 2014

you can recover form contractor from his dues.

Sudhir Kumar, Advocate (Advocate)     22 October 2014

a clear case to illustrate and outsourcing is not beneficial for Principal employer.

Hardeep (Business)     22 October 2014

This is an exception and a business risk. For purely economic and profit considerations, outsourcing is here to stay.

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