What Is Sham Contract

Paying good service awards or attendance bonuses as incentives to contract workers directly by the principal employer can become harmful to him because these actions by the principal employer can lead to the contract becoming a sham. However, at the same time, i...

Can contract workmen dispute a raise for their regularization on the ground if the principal employer is paying the award amount (for good working) directly to the contract workmen?Regards,RANJAN DIXIT

He cannot or is not expected to pay anything out of affection or love. Therefore, whatever payment is made directly to contractor workers will create an employer-employee relationship only.Madhu.T.K

Dear Shyam,Please clarify your statement "But the Conciliation officer issued a Failure Certificate instead of a reference. It appears that Conciliation Proceedings failed. The Conciliation Officer will submit a failure report to the Government. The Government w...

It depends on the following points:1) Nature of the agreement between the contractor and the principal employer.2) How the principal employer treats employees.3) Very Important - Who has the power of supervision. This is a determining factor.See [Things To Remem...

Dear All,I would like to inform you that one employee has filed a termination case against the principal employer, stating that he was an employee of ABC Company (Principal employer) and not AZ Company (Contractor), and that his termination was illegal. The work...

Dear Shyam: CGIT has the power to declare a contract arrangement to be sham. I am adding some case lawA contract of employment with any contractor is sham and nominal when over all day-to-day administrative control and supervision upon those workers is exercised...