Dear Colleagues,
I have some queries regarding Contract Labour:
1. Can anyone advise whether a contractor laborer is eligible for a bonus as per the recent amendment in the Payment of Bonus Act?
2. If a contractor removes his workers from the job after one year of service, what type of benefits is he liable to receive from the contractor/employer?
Please suggest.
Thanks & Regards,
Ajay Kr Sinha
From India, Jamshedpur
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7I have some queries regarding Contract Labour:
1. Can anyone advise whether a contractor laborer is eligible for a bonus as per the recent amendment in the Payment of Bonus Act?
2. If a contractor removes his workers from the job after one year of service, what type of benefits is he liable to receive from the contractor/employer?
Please suggest.
Thanks & Regards,
Ajay Kr Sinha
From India, Jamshedpur
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Dear Ajay Kumar Sinha,
If the contract labor has 30 days' attendance in an accounting year and his monthly earnings are Rs. 10,000 or below, he is entitled to a bonus. If he is relieved after one year, he is eligible to receive the PF amount, withdrawal benefit from the pension fund, etc., in addition to salary arrears.
Abbas. P. S
From India, Bangalore
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If the contract labor has 30 days' attendance in an accounting year and his monthly earnings are Rs. 10,000 or below, he is entitled to a bonus. If he is relieved after one year, he is eligible to receive the PF amount, withdrawal benefit from the pension fund, etc., in addition to salary arrears.
Abbas. P. S
From India, Bangalore
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Dear Friend,
Any employee who works for 30 or more days is eligible for a bonus. It is the obligation of the contractor to pay the bonus to their employees and not the principal employer. The bonus is to be paid only based on the profitability or allocable surplus available with the contractor. Contract labor cannot claim the quantum of bonus declared by the principal employer. If the contractor does not pay the bonus, the principal employer has to pay the minimum bonus and deduct the same from the contractor's bill.
G.K. Manjunath Sr. Manager-HR
From India, Bangalore
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Any employee who works for 30 or more days is eligible for a bonus. It is the obligation of the contractor to pay the bonus to their employees and not the principal employer. The bonus is to be paid only based on the profitability or allocable surplus available with the contractor. Contract labor cannot claim the quantum of bonus declared by the principal employer. If the contractor does not pay the bonus, the principal employer has to pay the minimum bonus and deduct the same from the contractor's bill.
G.K. Manjunath Sr. Manager-HR
From India, Bangalore
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Dear Nealsoni,
There is no need. The employee must work for 5 years continuously without any break in service to be eligible for gratuity. Since their work is casual in nature and the contract is for one year, the contractor has the right to terminate the services once the contract is over.
G.K. Manjyunath
From India, Bangalore
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There is no need. The employee must work for 5 years continuously without any break in service to be eligible for gratuity. Since their work is casual in nature and the contract is for one year, the contractor has the right to terminate the services once the contract is over.
G.K. Manjyunath
From India, Bangalore
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Dear G.K. Manjyunath,
I am talking about retrenchment compensation and not about gratuity. I know that if a person works for 5 years, then only he is eligible for gratuity. However, in this scenario, the contractor has removed the workmen, and nowhere is it mentioned that he was on a 1-year contract. So, in this case, the contractor will have to pay retrenchment compensation to that workman.
Thanks and Regards
From India, Mumbai
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I am talking about retrenchment compensation and not about gratuity. I know that if a person works for 5 years, then only he is eligible for gratuity. However, in this scenario, the contractor has removed the workmen, and nowhere is it mentioned that he was on a 1-year contract. So, in this case, the contractor will have to pay retrenchment compensation to that workman.
Thanks and Regards
From India, Mumbai
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Dear Neilsoni,
In this case, the contractor worker has completed one year of continuous service with the same contractor. Is he entitled to a retrenchment amount at 15 days' salary for every completed year?
Thanks and regards,
Ajay
From India, Jamshedpur
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In this case, the contractor worker has completed one year of continuous service with the same contractor. Is he entitled to a retrenchment amount at 15 days' salary for every completed year?
Thanks and regards,
Ajay
From India, Jamshedpur
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Dear Ajay, If the contract labour has 30 days attendance in an accounting year and his monthly earnings is Rs. 10,000 and below, he is entitled to get bonus
From India, New Delhi
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From India, New Delhi
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Dear Sir, How to engage contact labours in a organisation. What are the procedures. I want to know about shop & establishment acts also. Thanks & Regards, Anthony
From United States
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From United States
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Contract labor is not covered in the definition of an employee in the POB Act. The definition of wages is the same in the CL (R&A) Act and the POW Act, which has excluded bonus from it. Under the CLRA Act, the principal employer under sections 20 and 21 is liable only if the contractor fails to provide/give the following:
1. Canteen
2. Rest room
3. Other facilities
4. First-aid
5. Wages
Once again, the bonus is not mentioned. Hence, the bonus is the liability of the contractor.
Varghese Mathew 9961266966.
From India, Thiruvananthapuram
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1. Canteen
2. Rest room
3. Other facilities
4. First-aid
5. Wages
Once again, the bonus is not mentioned. Hence, the bonus is the liability of the contractor.
Varghese Mathew 9961266966.
From India, Thiruvananthapuram
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Dear Mr. Sinha,
When an employee or contract labor is employed, they are entitled to a bonus at least at the rate prescribed under the Payment of Bonus Act, irrespective of whether the employer makes a profit or not, subject to minimum service and salary ceiling. When contract labor is engaged, the tenure of employment is specific to the period of the contract. Such labor can be terminated on the expiry of the contract or at any time on disciplinary grounds. It does not attract any provisions of the ID Act.
Unless on disciplinary grounds and on the expiry of the contract, the employee shall be entitled to receive pay against the notice period, apart from any entitled bonus, if applicable. EPF and ESI benefits are to be availed from such authorities.
From India, Mumbai
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When an employee or contract labor is employed, they are entitled to a bonus at least at the rate prescribed under the Payment of Bonus Act, irrespective of whether the employer makes a profit or not, subject to minimum service and salary ceiling. When contract labor is engaged, the tenure of employment is specific to the period of the contract. Such labor can be terminated on the expiry of the contract or at any time on disciplinary grounds. It does not attract any provisions of the ID Act.
Unless on disciplinary grounds and on the expiry of the contract, the employee shall be entitled to receive pay against the notice period, apart from any entitled bonus, if applicable. EPF and ESI benefits are to be availed from such authorities.
From India, Mumbai
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Public Notice from Government of Maharashtra Department of Labour Bonus payment through banks on.pdf