#Principal Employer Liability

Calcutta High Court clarifies that principal employers under the Payment of Gratuity Act, 1972, are not vicariously liable for gratuity payments to contract workers unless a direct employer-employee relationship exists. The ruling rejects judicial expansion of liability via the Contract Labour Act, reinforcing statutory interpretation over judicial precedent.

Delhi High Court holds that principal employers cannot evade liability under the Employee’s Compensation Act by delegating work to contractors; Section 12 creates a deemed employment relationship.