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korgaonkar k a
2556

Dear Abhay,
My dear friend, where it is written? Where are the wordings? Which Contract Labour Act 1970 you are referring to? The Contract Labour Act 1970 which I read has no wordings on bonus.
If you give the abstract of said provision or verbatim or wordigs, the members of this forum and the entire HR Fraternity will be benefited by your knowledge.

From India, Mumbai
korgaonkar k a
2556

Dear Friends,
Since Mar 2009 I am contributing and sharing with this forum on what I gained or what I am gaining over the period of my exposure as a Corporate Advisor – Labour Laws and also as a Faculty on Labour Laws. But of late, I started feeling that my contributions are going in to vain and I am just spoiling my valuable time and energy.
There is no part of moderators here.

From India, Mumbai
loginmiraclelogistics
1073

The practice of contract labour in India is a menace a sham & shame as well. I know this practice is prevalent in most of corporates especially state and central govt. depts. & undertakings. You people may not believe it's not 5 yrs or 10 yrs. it's more than 20 yrs. persons are kept in contract labour category and denied regularisation on the pretext of want of vacancies. The surprise is these categories are employed in regular production line leave alone those on sundry jobs like house keeping, landscapping, loading & unloading etc. Crores of them still fighting with their managements thru' dharnas, demos and hunger strikes etc. with not tangible results. The modus operandi is well known. After expiry of initial few years one contractor's WO is not renewed, in it's place same job is awarded to same contractor in a different name keeping almost everybody on the roll except leaving a few trouble makers. Where the job security for these labourers languish, where are the statutory benefits, what all these labour legislations do to protect their interests? Any no.of judgments of courts, many no.of govts. won't remedy this situation so far. The queries of this nature keep coming in scores.
From India, Bangalore
king1984
Sir ,Please help me on this some questions raised please
1. What is the meaning of Contract Labors
2. What benefits there have like Bonus , leaves like Casual Leave, any other
3. What medical benefits will have through the contractor and the Organization. If any accident happens on the work
4. Is there any provisions like Loan through the contractor .
5. How many leaves are there for contract labors for Whole year.
6. Medical leaves or half salary . etc
will be very greatful for the help
And one more we are not much educated so please help us in wording not in Advocate words simple English words will help us more Thanking to all for there valuable Opinions

From India, Hyderabad
Anonymous
5

Dear All
I read King1984 question and answer from all members after that I concert Contract Labour Regulation and Abolition act and Bonus act basis of that I Derived two things kindly update me if I am not correct
Responsibility of Principle Employer for bonus
As per act Principle Employer (P.E.) hire a contractor for specific job , PE not hire any employee so there is no responsibility of PE to give bonus
Responsibility of Employer ( Contractor) for bonus
A person is eligible for Bonus if he worked at least 30 working day In a year but contractor labour jobs terminate at every month by issue pay of 26 or 25 days, (Eligibility for bonus.—according to 12(2) The Payment of Bonus Rules, 1975 Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year.)
If I am not correct kindly help me to update my self
Regards
Anurag

From India, Hyderabad
anuragsr2000
5

Dear All
I read King1984 question and answer from all members after that I concert Contract Labour Regulation and Abolition act and Bonus act basis of that I Derived two things kindly update me if I am not correct
Responsibility of Principle Employer for bonus
As per act Principle Employer (P.E.) hire a contractor for specific job , PE not hire any employee so there is no responsibility of PE to give bonus
Responsibility of Employer ( Contractor) for bonus
A person is eligible for Bonus if he worked at least 30 working day In a year but contractor labour jobs terminate at every month by issue pay of 26 or 25 days, (Eligibility for bonus.—according to 12(2) The Payment of Bonus Rules, 1975 Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year.)
If I am not correct kindly help me to update my self
Regards
Anurag

From India, Hyderabad
abhay_011
19

Dear Friend,
if your aren't finding any wordings for bonus related pertaining to contractual employee/labor in Contact Labour Act 1970, in you can refer to applicability clause of Payment of Bonus Act, 1965.
I do hope you'll find your answer.
Rgds

From India, Mumbai
abhay_011
19

Dear Friend,
However, there is one contradiction. And that is THE WORKING CONDITIONS OF CONTRACT LABOUR (Bonus and Apart from bonus related) is determined by as per segment/industry type wise also. But its completely discretion of Segment/Industry Norms.
Rgds

From India, Mumbai
korgaonkar k a
2556

Dear Abhay_011,
I will, rather this forum will appreciate if you give the abstract of said provision or verbatim or wordings. Also, would you please explain the meaning of your wordings of " there is one contradiction. And that is THE WORKING CONDITIONS OF CONTRACT LABOUR (Bonus and Apart from bonus related) is determined by as per segment/industry type wise also"?

From India, Mumbai
Madhu.T.K
4242

I think Keshav and Harsh have clarified the points in detail. And I don't find any merit in Abhay's arguments also. Here in this particular case, unfortunately, the principal employer is Central Government and that is why all these things have happened. Had it been any other private organisation, the Labour department would have intervened and the contract workers would have got their bonus. For deciding the eligibility for bonus, it is immaterial whether they are daily rated or employed for a fixed period or not. In a conciliation, practically (not going by law), even the salary ceiling of Rs 10000 is not considered no a days.

The main menace is that in the present case it is the government who is the principal employer and the fact that government body is not covered by the Payment of Bonus Act. This cannot be taken for granted because the department cannot escape from the liability of principal employer. In respect of payment of ESI and PF contributions, the contractor has been following the respective law and there seems to be no failure in making these statutory payments. That means, the contractor being the employer of the workers engaged should take initiative and pay the bonus as per law. Moreover, the government department for whom they are engaged should also take initiative and ensure that the bonus is paid to the workers.

Another important thing that I find is that there have been changes in the contractors over these 12 years period but the workers remain the same. Had this situation been in a private organisation, naturally, the labour department would have declared the contract as sham and initiated action against the principal employer. In this scenario, the workers should file a complaint before the appropriate authority, Labour department and find a solution. Normally, the contract value will include an element of bonus also. The same should also be verified. There may be a chance that the department makes payment on CTC basis and the contractor is paying only the salary keeping the bonus element with him.

Regards,

Madhu.T.K

From India, Kannur
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