Payment By Principal Employer Or Contractor

Greetings to all!
I would like to put forward a daily kind of issue which is little tangled up, and i am little confused about as which way to approach this situation.
Case 1. Production line stopped as the casual labour or contract worker were absent. Should the contractor be penalized and also asked to make the payment to the rest of contract worker who had to be returned back? If yes or no who is liable to pay and how much taking minimum wages into reference.
Case 2. What should be the criteria of penalising contractor in case of piece rate?
I require your suggestions and advises so kindly help me.

Dear Ignatius
Eventhough the Payment of wages is to be made by the Contractor it is the responsibility of the Principal Employer to ensure the payment as per Minimum Wages Act.
What is the contractual agreement made between the contractor and principal employer. Is there any para available regarding the penalty clause in case of any breach in the contractual agreement.
What is the agreement regarding the payment to the workmen. As per payment of wages act, the payment to the workmen must be paid on or before 7th of preceding month. If the contractor is not making the payment and the workers approach the principal employer, obviously the PE has to make the payment and debit the same in the bills of the Contractor and if the penalty clause is available, the penalty also will be added in the deduction side.
Hope your query is cleared.

On this issue, the T&C of the agreement executed by both the parties is crucial. Yet it is to be examined without prejudice whether the circumstances were beyond the control of the Contractor. In so for payment of wages is concerned,this is also to be verified whether the labors returned at their own or under any commitment by the contractor. This will help in drawing the inference and to settle the issue regarding penalty & wages.

what kind of contract...do u have contract with individual labour or a particular contractor supply labour to you and what kind of agreement with you company...all are depend on that.yes you can fire stop payment deduct money but all are depend on agreement
Abhijeet Kumar