Dear All,
under payment of Bonus act whether contracts labours are eligible for bonus. if yes whether is it compulsory to pay the bonus the contract labour. If not what is the penal provision under the act.
rns
From India, Mumbai
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6under payment of Bonus act whether contracts labours are eligible for bonus. if yes whether is it compulsory to pay the bonus the contract labour. If not what is the penal provision under the act.
rns
From India, Mumbai
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Dear Swamy
Whoever it is the Contractor also gots the profit, since he is taking profit, he too eligible to pay the Bonus to it's employees under Normal Practice. Here, the Principal Employer has to ensure whether the Bonus is paid to the Contract Employees or not. In the Wage Pattern itself, the Principal Employer has to make the break up which is inclusive of Bonus. The Bonus Act may talks about the Infancy Period ie, any organisation's age is below 5 years that has been exempted to pay Bonus, but in the same act it is clearly mentioned that, if the Organisation starts to getting Profit within 2 years, then it has to pay the Bonus to its employees from the Origin with Interest, that is why? Most of the Organisations are paying bonus from the starting Budget Year itself.
Since the Contractor is the Contractor to the Principal Employer, the Parent of the Contractor shall be Contract Labour Act (Regulation & Abolition). So you have to pay the Bonus to your Contract Employees, as a Principal Employer, you should ensure with the Contractor, whether the Bonus has been disbursed or not.
Thanks & Regards
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Whoever it is the Contractor also gots the profit, since he is taking profit, he too eligible to pay the Bonus to it's employees under Normal Practice. Here, the Principal Employer has to ensure whether the Bonus is paid to the Contract Employees or not. In the Wage Pattern itself, the Principal Employer has to make the break up which is inclusive of Bonus. The Bonus Act may talks about the Infancy Period ie, any organisation's age is below 5 years that has been exempted to pay Bonus, but in the same act it is clearly mentioned that, if the Organisation starts to getting Profit within 2 years, then it has to pay the Bonus to its employees from the Origin with Interest, that is why? Most of the Organisations are paying bonus from the starting Budget Year itself.
Since the Contractor is the Contractor to the Principal Employer, the Parent of the Contractor shall be Contract Labour Act (Regulation & Abolition). So you have to pay the Bonus to your Contract Employees, as a Principal Employer, you should ensure with the Contractor, whether the Bonus has been disbursed or not.
Thanks & Regards
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kindly quote the exact govt orders under which bonus has to be paid to the contract labour. me as a principal employer has to get sanction from our account department to reimburse the bonus paid by the contractor. for orders please
From India, Tiruchchirappalli
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From India, Tiruchchirappalli
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Definetly , You should pay the bonus to the contract labour, if works more than 30 days in the respective financial year. Regards Manoj Prasad Gurgaon
From India, Mumbai
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From India, Mumbai
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Please resolve the following queries:
1. An establishment is exempted from paying a bonus in its infancy period (i.e., the first 5 years). Here, are we talking about the contractor's establishment or the Principal Employer's?
2. Somebody said in the above post that any employee who has worked for more than 30 days in a year is eligible for a bonus. Suppose an employee starts working in the PE's factory from September, and Bonus is paid in October, when will this employee be paid a bonus for the first time?
3. What are the wage limits for eligibility and the calculation of a bonus?
From India
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1. An establishment is exempted from paying a bonus in its infancy period (i.e., the first 5 years). Here, are we talking about the contractor's establishment or the Principal Employer's?
2. Somebody said in the above post that any employee who has worked for more than 30 days in a year is eligible for a bonus. Suppose an employee starts working in the PE's factory from September, and Bonus is paid in October, when will this employee be paid a bonus for the first time?
3. What are the wage limits for eligibility and the calculation of a bonus?
From India
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Dear Team,
The answer to your query is as follows:
1. For a brief description of the infancy period, please refer to the Payment of Bonus Act.
2. Bonus is always calculated for the financial year (FY) from April to March only and will be paid within 8 months after closing the FY. Hence, the eligibility of an employee will also be calculated within the FY only.
3. The wage limit for eligibility for Bonus is Rs. 10,000/- (Basic+DA) per month, while the calculation must be done up to a maximum wage (Basic+DA) of Rs. 3,500/- per month.
Please let us know if you need any further clarification. Thank you.
Kind regards,
[Your Name]
From India, Mumbai
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The answer to your query is as follows:
1. For a brief description of the infancy period, please refer to the Payment of Bonus Act.
2. Bonus is always calculated for the financial year (FY) from April to March only and will be paid within 8 months after closing the FY. Hence, the eligibility of an employee will also be calculated within the FY only.
3. The wage limit for eligibility for Bonus is Rs. 10,000/- (Basic+DA) per month, while the calculation must be done up to a maximum wage (Basic+DA) of Rs. 3,500/- per month.
Please let us know if you need any further clarification. Thank you.
Kind regards,
[Your Name]
From India, Mumbai
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Dear Seniors,
Can you suggest to me if a contract employee receives a salary after deduction of ESI & PF, will he receive a bonus as per the bonus act at the time of full & final settlement if the bonus is not specified in his agreement?
Regards,
Ashish K.
From India, Delhi
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Can you suggest to me if a contract employee receives a salary after deduction of ESI & PF, will he receive a bonus as per the bonus act at the time of full & final settlement if the bonus is not specified in his agreement?
Regards,
Ashish K.
From India, Delhi
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Dear All,
Greetings of the day.
I just want to know whether the contract employees are eligible for an attendance bonus since their wages are calculated based on 26 days. They are also asking for overtime.
I am looking forward to your valuable replies. Please note, they are not in manufacturing but are involved in operations and maintenance.
From India, Hyderabad
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Greetings of the day.
I just want to know whether the contract employees are eligible for an attendance bonus since their wages are calculated based on 26 days. They are also asking for overtime.
I am looking forward to your valuable replies. Please note, they are not in manufacturing but are involved in operations and maintenance.
From India, Hyderabad
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Dear All,
If the principal employer is liable for payment of bonus, the contractor has to maintain a bonus register, or the principal employer includes the contract labor and maintains the register. Please?
From India, Chennai
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If the principal employer is liable for payment of bonus, the contractor has to maintain a bonus register, or the principal employer includes the contract labor and maintains the register. Please?
From India, Chennai
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