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CS Professional · Labour Laws and Practice · Law of Welfare and Working Condition

Reel Wave Studios, a producer, engages Kiran as an audio-visual worker through contractor Mehta Crew Services. The contractor defaults on paying Kiran's wages. Under the OSH Code, 2020, which position is correct?

The written agreement must contain a condition that the producer also discharges the contractor's unpaid obligations, such as wages, and is entitled to be reimbursed by the contractor. So the producer shares liability but keeps a right of recovery.

  1. AThe agreement must carry a condition that the producer also discharges the obligations and may be reimbursed by the contractorCorrect
  2. BOnly the contractor is liable, and the producer has no obligation
  3. CThe producer is liable but cannot recover anything from the contractor
  4. DNo written agreement is needed when a contractor is used

Explanation

Where the worker is employed through a contractor, the agreement must include a specific condition that if the contractor fails to discharge obligations such as wages, the producer is also liable and is entitled to reimbursement from the contractor. A written agreement is required in every such case.

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