Hi, Pl let me know whether the contractual employees in a manufacturing company employed through contractor or man power supplier are eligible for payment of bonus under the bonus act.
thanks
ramesh Sharma
From India, Chandigarh
thanks
ramesh Sharma
From India, Chandigarh
Hi ramesh,
Here in our country, contractual employees under a manpower staffing office or contractor has the right to receive the mandatory bonus (we call it 13th month pay). However it should be the contractor who has to pay them directly not the contracting company.
Hope I was of help
Carmie
From Philippines
Here in our country, contractual employees under a manpower staffing office or contractor has the right to receive the mandatory bonus (we call it 13th month pay). However it should be the contractor who has to pay them directly not the contracting company.
Hope I was of help
Carmie
From Philippines
Hi Carmie
Thanks for reply. Pl carify whether the company who hires the employee through a contractor is liable to pay bonus to the employees of contractor under payment of bonus act. Prime liability is with contactor or with company under the act. what would be the legal position if contractor does not pay bonus to its employee employed in a company which pays bonus to its regular employee. Does company liable to pay gratuity also to the employee of contractor who are in employment with the contractor for last 5 years.
Thanks
Ramesh Sharma
From India, Chandigarh
Thanks for reply. Pl carify whether the company who hires the employee through a contractor is liable to pay bonus to the employees of contractor under payment of bonus act. Prime liability is with contactor or with company under the act. what would be the legal position if contractor does not pay bonus to its employee employed in a company which pays bonus to its regular employee. Does company liable to pay gratuity also to the employee of contractor who are in employment with the contractor for last 5 years.
Thanks
Ramesh Sharma
From India, Chandigarh
For clarity, Company A entered into a contract with Contractor B to provide them contractual employees. Company A pays Contractor B for the salary of the contractual employees and the mandatory bonus. Ideally, Contractor B must give the employees their salary and bonuses since Company A paid them. However, in the real world some contractors don't give the contractual employees their mandatory benefits. If that happens and the contractual employee complained to the proper authorities, Company A is also liable together with Contractor B in not practicing good labor relations (this is the case here in our country). What does your labor law states with tri-lateral employment?
Carmie
From Philippines
Carmie
From Philippines
The Ministry of labour has clarified that the Principal employer is not liable to pay Bonus
From India, Madras
2From India, Madras
Dear Thiagaraju
It will be great help if you could mention the notification/circular no. or any citation of Ministry of Labour that principal employer is not liable to pay the bonus to the contactual work force employed through a contractor.
thanks and regards
Ramesh Sharma
From India, Chandigarh
It will be great help if you could mention the notification/circular no. or any citation of Ministry of Labour that principal employer is not liable to pay the bonus to the contactual work force employed through a contractor.
thanks and regards
Ramesh Sharma
From India, Chandigarh
Dear Ramesh
As a matter of fact, the contract in question should be studied and then any decision is to be taken. However on the basis of what you have written please note that contractor labour are not entitled to bonus under the provision of Payment of Bonus Act. You may refer to Gasliton Colliery Vs workmen 1954, I LLJ, 144 : 1953 LAC 525 and Cominco Binani Zinc Ltd. Vs Pappachan, 1989 , I LLJ. 452 , Kerala High Court. for full clarity on this matter.
Mohan.
From India
As a matter of fact, the contract in question should be studied and then any decision is to be taken. However on the basis of what you have written please note that contractor labour are not entitled to bonus under the provision of Payment of Bonus Act. You may refer to Gasliton Colliery Vs workmen 1954, I LLJ, 144 : 1953 LAC 525 and Cominco Binani Zinc Ltd. Vs Pappachan, 1989 , I LLJ. 452 , Kerala High Court. for full clarity on this matter.
Mohan.
From India
Hi
Even in India the law is same
I have not read the judgement cited on Bonus.
But if my understanding is right, all statutory payments are to be made by the Contractor. He is an Employer. In a tripartite situation, The Principal Employer is liable to make the payment if the Contractor fails to do and the Principal employer can recover the same from the Contractor
The Bonus declared by the Principal employer and the Bonus declared by the contractor need not be the same. It can be less or more
I will try to read the judgement soon If anyone has a soft copy kindly post the same
Thanks
Siva
From India, Chennai
Even in India the law is same
I have not read the judgement cited on Bonus.
But if my understanding is right, all statutory payments are to be made by the Contractor. He is an Employer. In a tripartite situation, The Principal Employer is liable to make the payment if the Contractor fails to do and the Principal employer can recover the same from the Contractor
The Bonus declared by the Principal employer and the Bonus declared by the contractor need not be the same. It can be less or more
I will try to read the judgement soon If anyone has a soft copy kindly post the same
Thanks
Siva
From India, Chennai
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