Employees' State Insurance Act

This query is : Resolved 
 

(Querist)
10 March 2008

Dear All
I am working with DMS provider company.
A different co. has been providing workers to us on contract basis since Jan. 2006.
Both the co. are runned by a family.
The Directors are different.

My queries are:
1. Is it necesary to have a license of being a contact labour for the co. which is providing workers.

2. What could be the consequences if employer's contribution has been paid by the principal employer i.e. where the workers are actually working and emplyees' contribution has not been paid since Jan 2006.

3. Is it a criminal offence? if yes, What is the remedy for the same?

Pleas help me its very urgent

In anticipation of a quick reponse.

regards

Abhimanyu Soni



Manish Singh (Expert)
10 March 2008

1. Yes it is necessary to have a license for the providers of labours on contract(contract labour).
2.If the principal employer has paid the wages, he can claim it back from the contractor(or can deduct from the amount to be paid to the contract).
3.No it is not a criminal offence. Contravention of the provisions affect the penalties as : It shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to one thousand rupees, or with both, and in the case of a continuing contravention with an additional fine which may extend to one hundred rupees for every day during which such contravention continues after conviction for the first such contravention.

Hiralal Das (Expert)
07 April 2009

Thanks all of you the ld. members and the author.
I think your valuable opinions will assist everybody to solve their problem/matter in question properly.

Sachin Bhatia (Expert)
17 October 2009

Yes it is necesary to have a license of being a contact labour for the co.If employer's contribution has been paid by the principal employer. No it is not a criminal offence.

Sachin Bhatia (Expert)
17 October 2009

Yes it is necesary to have a license of being a contact labour for the co.If employer's contribution has been paid by the principal employer. No it is not a criminal offence.



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