Contract Labour Act

Zia (Querist) 23 June 2009 This query is : Resolved
Dear Sirs,

What are the retrenchment benefits payable to the contract labour under CLR&A Act in case the contractor closes his Job Contract without any notice.

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Manish Singh (Expert) 23 June 2009
the industrial dispute act, if the employee falls under it, shall be applicable against the principal employer.

Swami Sadashiva Brahmendra Sar (Expert) 24 June 2009
if worker has completed 240 days without break, he is entitled for one month notice or one month salary in lieu of notice.

H. S. Thukral (Expert) 24 June 2009
In my opinion, if the Principal Employer has a valid license and the contractor is also registered and the wages to the workmen are paid by the contractor then the principal employer is not at all liable to pay retrenchment compensation. The employees of contractor are not workmen of the Principal Employer as he has not hired them for wages or reward and secondly he is not terminating the services of any contract labour directly.

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