A Supervisor is an important cog in the wheel of Management. A person designated as “Supervisor” is conferred with powers to take decision independently in relation to the work he is supervising and the Company is bound by his decision.

There are several such features of a Supervisor that have been stated by the Hon'ble Supreme Court in various judgements over the years.

The Employees' State Insurance Act, 1948 and The Employees' Provident Funds & Miscellaneous Provisions Act, 1952 clearly holds the Principal Employer liable to pay the contributions in respect of the Contract employees in the event of the Contractor not remitting the same.

Is the Principal Employer liable to pay bonus to the contract employees as it does in the case of the employees on its own pay-roll? Can the union make a claim against the Principal Employer on behalf of the Contract employees? Is there an Employer-Employee relationship between the Principal Employer and the Contract employees?


To understand the role of the Supervisor in Management, the view of the High Court of Karnataka on a Principal Employer's liability to pay Bonus to contract employees engaged through a Contractor and the various statutory returns under Labour Laws to be filed this month...

Read the July 2013 issue of "R&M Bulletin"