The Occupational Safety, Health and Working Conditions Code, 2020
Section 55. Responsibility for payment of wages
In simple words
- The contractor is responsible for paying wages to each contract labour within the period the Government prescribes s. 55(1).
- Wages are paid by bank transfer or electronically, and the contractor tells the principal employer electronically what was paid s. 55(2).
- If the contractor pays late or short, the principal employer must pay the wages in full or the unpaid balance, and may recover the amount from the contractor s. 55(3).
- If the contractor still does not pay, the Government can order the wages paid out of the contractor’s security deposit s. 55(4). See the contract labour guide.
An explanation, not the law. The official text below prevails.
Official text
(1) A contractor shall be responsible for payment of wages to each contract labour employed by him and such wages shall be paid before the expiry of such period as may be prescribed by the appropriate Government.
(2) Every contractor shall, make the disbursement of wages referred to in sub-section (1) through bank transfer or electronic mode and inform the principal employer electronically the amount so paid by such mode:
Provided that where it is not practicable to disburse payment in the mode specified in this section, then, the payment shall be made in such manner as may be prescribed by the appropriate Government.
(3) In case the contractor fails to make payment of wages referred to in sub-section (1) within the prescribed period or makes short payment, then, the principal employer shall be liable to make payment of the wages in full or the unpaid balance due, as the case may be, to the concerned 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.
(4) The appropriate Government, in the event the contractor does not pay the wages to the contract labour employed by him, shall pass the orders of making payment of such wages from the amount deposited by such contractor as security deposit under the licence issued by the licensing officer to the contractor, in such manner as may be prescribed by such Government.