Sounder Rajan V (Advocate) 03 January 2011

Duty of the Principal Employer

BEST WISHES TO THE VIEWERS OF LAWYERSCLUBINDIA FOR A PROSPEROUS 2011.

A common question arises in Contractual Employment on the duty of the Principal Employer in ensuring timely payment of Salaries to the Contract workmen

Rule 72 of the CLRA Rules states as follows:

"The principal employer shall ensure the presence of his authorized representative at the place and time of disbursement of wages by the contractor to workman and it shall be the duty of the contractor to ensure the disbursement wages in the presence of such authorized representative. "

Consequently when the rule clearly stipulates a duty on the part of the Principal Employer to be present at the place and time of disbursement of wages by the contractor to workman and also the duty of the contractor to ensure the disbursement wages in the presence of of the Principal Employer it is a matter of Joint responsibility .

This is an issue of Compliance.

With Regards

V.Sounder Rajan
VS Rajan Associates,
Advocates & Notaries & Legal Consultants
No.27, Ist Floor, Singapore Plaza,
No.164, Linghi Chetty Street,
Chennai - 600 001.
E-mail : rajanassociates@eth,net,
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1 Replies

V. VASUDEVAN (LEGAL COUNSEL) 03 January 2011

Indeed it is an issue! However, considering Section of the Payment of Wages Act (reproduced below), my views are that it shall be sufficient compliance if the contractor credit the wages in the manner set out therein

request Learned Members to throw more light on this issue.

thanks, vasudevan
6. Wages to be paid in current coin or currency notes -

All wages shall be in current coin or currency notes or in both :

Provided that the employer may after obtaining the written authorisation of the employed person pay him the wages either by cheque or by crediting the wages in his bank account.