hi, we have entered into an agreement for annual maintenace of ups. we have in our contract mentioned that the contractor's employee shall not be compensated with respect to injury or factal accident. the contractor is objecting for the same and wants it to be deleted. i think that we are right and the contractor is liable for the same. please comment on the same.
Under AMC contracts, if the contractor employs contract labourers and there happens to some injury or accident/ fatal accident , the primary responsibilty to pay compensation to the injured or deceased laboureres lies with the contractor under the provisions of CL(RA) Act. However, when the contractor fails to pay compensation to the injured labourers, then the secondary responsibility shifts to the principal employer (i.e.a company or firm etc). In these kind of situations, the principal employer has to pay compensation the victims and has to make recovery from amounts that are due to be paid to the contractor under the terms and conditions of the contract.
Mr. Elamran has rightly described the legal position. In this connection section 20 and 21 of CL(R&A) Act,1970 can be referred. Any contract made, beyond/ contrary to the provision of law shall be voidable/ void-ab-initio.
If I am not wrong there is a court judgement which clearly states that outsiders (service providers) need not have to be employees of the principal employer. In this context, the case above is clearly answered.
The service providers` employees need not have to be covered for such benefits.