Principal employer is liable for payment of wages to the workmen as per section 21(4) of the Contract Labour (Regulation & Abolition) Act when the immediate employer i.e . contractor fails to discharge his obligation
To explain aforementioned subject in detail I would like to cite one case law which will give clear overview and insight. 2014 LLR 130 DELHI HIGH COURT Hon'ble Mr. S. Rav indra Bhat , J. Hon'ble Mr. Najm i Waz iri , J . LPA 351/2013, C.M .A. 8201/2013 , D/–3-9-2013 Shyamji Srivastava & Ors. vs. Management of M/s. Pub lic Works Department & Ors. INDUSTRIAL DISPUTES ACT, 1947 – Sections 33C and 34 – Contract Labour (Regulation & Abolition) Act, 1970 – Section 21(4) – Workmen were engaged through contractors by PWD Department – They complained of non-payment/short payment of wages – Reference was made for adjudication – Labour Court declared the workmen entitled to wages – Contractors were declared employers whereas PWD Department was held as principal employer –Workmen filed application under section 33C of the I.D. Act for recovery of wages which was not dealt – PWD Department confirmed under RTI Act not to be liable for payment on the ground ...