Employment Act 1968 · 2020 Revised Edition · Part 15 · Claims, Complaints and Investigations Into Offences
116. Prohibiting order by Commissioner to third party
Feedback & supportWhenever the Commissioner has made an order under section 115 against any employer or any person liable for the payment of any sum of money to any workman or subcontractor for labour and after inquiry finds that there exists between that employer or person liable and some other person a contract in the course of the execution of which the workman or subcontractor for labour performed the work in respect of which the order has been made, the Commissioner may summon that other person and may make an order prohibiting that other person from paying to the employer or person liable and requiring that other person to pay to the Commissioner any money (not exceeding the amount found due to the workman or subcontractor for labour) admitted by that other person to be owing to the employer or person liable in respect of the contract.
employer
“employer” means any person who employs another person under a contract of service and includes —(a)the Government in respect of such categories, classes or descriptions of officers or employees of the Government as are declared by the President to be employees for the purposes of this Act;(b)any statutory authority;(c)the duly authorised agent or manager of the employer; and(d)the person who owns or is carrying on or for the time being responsible for the management of the profession, business, trade or work in which the employee is engaged;
Where that other person admits to the Commissioner in writing that money is owing by that other person under the contract to the employer or person liable, that other person need not be summoned before the Commissioner and the Commissioner may make such order in that other person’s absence.
Where that other person is liable as a principal under section 65 to pay any salary due by the employer or person liable and where the money admitted by that other person to be owing to the employer or person liable is not sufficient to pay the whole of the salary, nothing in this subsection relieves that other person of that other person’s liability for the balance of the salary up to the amount for which that other person is liable under that section.
principal
“principal” means any person who, in the course of or for the purposes of the person’s trade or business, contracts with a contractor for the supply of labour or for the execution by the contractor of the whole or any part of any work undertaken by the principal;
Any person so summoned is legally bound to attend at the time and place mentioned in the summons and to answer truthfully all questions relating to the contract which the Commissioner may put to that person.
The payment of any money pursuant to an order under subsection (1) is a discharge and payment up to the amount so paid of money due to the employer or person liable under the contract.