Legal Question in Employment Law in India

I was a contractor providing labour to a comany and so also to other companies,but mainly to this company.Because of no work I retrenched all my workmen aprox 30 workmen.Then after a year the company also closed its operations and retrenched their workmen in that establishment.The union made out a case in I D chapter V B and the court ruled in favour of union.Now who is liable to pay back wages? I cannot take the burden of back wages of my 30 retrenched employees.What should be my stratagy?

Asked on 9/29/13, 8:04 am

1 Answer from Attorneys

Fca Prashant Chavan Expert Edge LLP


Dear Sir / Madam,

Your strategy should be that the Union was of the Company, and the Court ruling applies to back wages of all the Company's retrenched workmen. So the liability of payment of back wages remains that of the Company, and not of the labour contractor. You should state clearly that you were just the intermediary to source the labour, the payment to the labour engaged, was being done by the Company alone.


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Answered on 9/29/13, 10:12 am

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