Section – 55. Responsibility for payment of wages.
(1) A contractor shall be responsible for payment of wages to each contract labour employed by him, and such wages shall be paid within the period prescribed by the appropriate Government.
(2) The contractor shall disburse wages through bank transfer or electronic mode and shall inform the principal employer electronically of the amount paid:
Provided that where such mode is not practicable, payment shall be made in the manner prescribed by the appropriate Government.
(3) If the contractor fails to pay wages within the prescribed period or makes short payment, the principal employer shall be liable to pay the full wages or the unpaid balance to the contract labour and may recover the amount from the contractor, either by deduction from any amount payable under any contract or as a debt.
(4) Where the contractor fails to pay wages, the appropriate Government may direct payment from the security deposit furnished by the contractor under the licence, in the manner prescribed.