Section:21 :Responsibility For Payment Of Wages To Contract Labour
Obligation : To ensure full payment of wages to all contract employees employed at the establishment
Type:Preventive Compliance
Frequency: Monthly
Action to be taken:
Ensure that the contractor puts up a notice showing the wage period and place and time of disbursement of wages.Nominate a representative to be present at the time of disbursement of wages by the contractor who will certify the amounts paid as wages to each workman. In case wages are not paid in full by the contractor, the employer has to pay the balance amount due and recover the money from the contractor
Audit Requirement: Are all contract employees paid their full wages in the presence of a representative of the establishment ?
Supporting Documents: Representatives certification of payments to each contract labourer
Related Sections:
Contract Labour (Regulation & Abolition) Act, 1970 Chapter:Welfare and Health of Contract Labour|21:Responsibility for payment of wages:
(1) A contractor shall be responsible for payment of wages to each worker employed by him as contract labour and such wages shall be paid before the expiry of such period as may be prescribed.
(2) Every principal employer shall nominate a representative duly authorised by him to be present at the time of disbursement of wages by the contractor and it shall be the duty of such representative to certify the amounts paid as wages in such manner as may be prescribed.
(3) It shall be the duty of the contractor to ensure the disbursement of wages in the presence of the authorised representative of the principal employer.
(4) In case the contractor fails to make payment of wages within the prescribed period or makes short payment, then the principal employer shall be liable to make payment of wages in full or the unpaid balance due, as the case may be, to the contract labour employed by the contractor and recover the amount so paid from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor.
Contract Labour (Regulation & Abolition) Act, 1970 
