Will be sham contract in case of if contractor has been frequently change by principle employer in perennial job

Dear Sir

Please revert that will be consider sham contract in case of contractor has been frequently change by principle employer in perennial nature of job and also although the esic , mediclaim and insurance amounts were continuously debited from salary of workman and its ( esic card , mediclaim & insurance document ) will also not delivered to workman.Can be this will be sufficient fact to declare sham contract in case if the matter will proceed in labour court.

Please revert

Dear Birendra

Sham contract is where the contractor is a namesake agent and there is camouflaging, which means there is direct employer-employee relationship between Principal Employer and Employees of the contractor by way of direct control, direct supervision, direct payment of wage and compensation (on regular basis) and other relevant factors to establish such relationship. Merely change of contractor will not amount to "sham" contract.

Non compliance with provisions of PF and ESIC will amount to respective violation and respective penalty as prescribed on the relevant Act.

Shailesh Parikh
99 98 97 10 65
Gujarat,India

A contract is sham or genuine would depend on a variety of factors, primarily who supervises the labour daily, who appointed them, who is paying salary, who gives work-related instructions, who approves leave, who is disciplining them, etc. Frequent changes of contractor need not be a pointer to a sham contract. Contract labour could be deployed in perennial jobs so long as it is not a prohibited trade

Prima facie, it seems to be clearly a scam contract.

The fact that the contractor is changed frequently, with the workers remaining the same clearly shows that they are really employed with the PE but routed though and agent for the purpose of preventing payment of fair wages and dues.

You need to speak to a good lawyer for the same as it depends on the circumstances of the case as KK pointed out above

Dear Sir

If the application applied by workman to principle employer ,interview also taken by principle employer , daily supervision and controlled by principle employer and even the leave is also being granted by principle employer in such situation , can be contract treated as sham contract please revert
Same workmans are working with principle employer even if the consultants ( contractors ) are frequently changes but the roles of workman is never be changes in such situation , can be sham contract
Please revert sir

In the situation below, it will definitely be considered as a Sham

"If the application applied by workman to principle employer ,interview also taken by principle employer , daily supervision and controlled by principle employer and even the leave is also being granted by principle employer in such situation , can be contract treated as sham contract please revert
Same workmans are working with principle employer even if the consultants ( contractors ) are frequently changes but the roles of workman is never be changes in such situation , can be sham contract "