You can give the sincere and hardworking workmen incentives or productivity bonuses every month, provided that you maintain the productivity of each workman. Additionally, you can pay based on the quality of products delivered by the workmen without facing any questions. However, ensure to obtain prior approval from your management before making any payments. This payment should not be given through the contractor or their bill; instead, you can directly provide the payment (Cash Reward) to the workmen during the monthly progress, quality, or safety meeting in front of all employees.
From India, Kumbakonam
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1257From India, Kumbakonam
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Dear Ganesh,
I have a setup where the contract workers, because of overtime and long working hours, have gotten very close to, or sometimes even more than, what a white-collar junior-level staff member receives. Hence, this was highlighted. I trust you would consider that.
As S. Bhaskar suggests, another option to consider is paying the salary early to good performers. For instance, the top 10% of performers will receive their salary 2-3 days in advance. That is, if the salary check is paid to the contractor on the 7th, issue the check to the top 10% staff on the 1st, and for the remaining 90%, on the usual date. There is no extra payment required from your end, just an early payment, which does not result in any revenue loss for you. However, for the staff, receiving one week's salary early means a lot. Moreover, you are not penalizing the 90% for not being the top performers.
Another suggestion is to reward someone with 100% attendance by giving that person one day's extra salary. Generally, contract staff have a habit of being absent.
Best Wishes
From India, Mumbai
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I have a setup where the contract workers, because of overtime and long working hours, have gotten very close to, or sometimes even more than, what a white-collar junior-level staff member receives. Hence, this was highlighted. I trust you would consider that.
As S. Bhaskar suggests, another option to consider is paying the salary early to good performers. For instance, the top 10% of performers will receive their salary 2-3 days in advance. That is, if the salary check is paid to the contractor on the 7th, issue the check to the top 10% staff on the 1st, and for the remaining 90%, on the usual date. There is no extra payment required from your end, just an early payment, which does not result in any revenue loss for you. However, for the staff, receiving one week's salary early means a lot. Moreover, you are not penalizing the 90% for not being the top performers.
Another suggestion is to reward someone with 100% attendance by giving that person one day's extra salary. Generally, contract staff have a habit of being absent.
Best Wishes
From India, Mumbai
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Dear Ganesh,
May you find it useful to go through the following points:
- It is not you (management); it is the contractor who pays the wages to contract laborers.
- As mentioned above, you can definitely pay higher. In fact, it is common practice since there are several critical and high skills that demand higher than the minimum wage. It is market-driven. The contractor can pay/reward the performing laborers.
- There is no upper limit; it requires a review of the salary of the employees at the bottom of your organization and any possible implications on regular workers and their unions.
Regards,
Shailesh Parikh
Vadodara, Gujarat
99 98 97 10 65
From India, Mumbai
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May you find it useful to go through the following points:
- It is not you (management); it is the contractor who pays the wages to contract laborers.
- As mentioned above, you can definitely pay higher. In fact, it is common practice since there are several critical and high skills that demand higher than the minimum wage. It is market-driven. The contractor can pay/reward the performing laborers.
- There is no upper limit; it requires a review of the salary of the employees at the bottom of your organization and any possible implications on regular workers and their unions.
Regards,
Shailesh Parikh
Vadodara, Gujarat
99 98 97 10 65
From India, Mumbai
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Yes, you can pay as you desire. However, if you wish to avoid unrest among the workers who are currently employed, you may consider giving promotions or increasing the minimum wage for certain individuals, such as Grade I, Grade II, or Technicians.
From India, Ghaziabad
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From India, Ghaziabad
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Contractor collected pf amount from the workers, but it is not deposited. He got PF registration, but no payments. Can we register a embezzlement case in Police Station. Pl. clarify.
From India, Nellore
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From India, Nellore
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Dear sambasivakamasani,
This is a common problem. You can lodge a case against the contractor, but the procedure may be lengthy. Also, consider other circumstances such as the contractor's status, management's view, etc.
A better approach would be to take care in the future.
Regards,
Ganesh.
From India, Pune
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This is a common problem. You can lodge a case against the contractor, but the procedure may be lengthy. Also, consider other circumstances such as the contractor's status, management's view, etc.
A better approach would be to take care in the future.
Regards,
Ganesh.
From India, Pune
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Dear Sambasiva,
As per the Contract Labour Act, if the contractor is not making payments properly, then the principal employer is liable to pay and deduct the amount thus paid in the contractor's bills. It is the responsibility of the principal employer to take care of such issues. Whatever amount is paid to the contractor towards wages includes statutory components like PF, ESI, etc. You may take up the issue with the local Labour Department authorities for resolving the issue, with all records substantiating your argument. In cases of contravention, the principal employer will be fined and jailed.
With regards,
Madhusudan
From India, Vijayawada
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As per the Contract Labour Act, if the contractor is not making payments properly, then the principal employer is liable to pay and deduct the amount thus paid in the contractor's bills. It is the responsibility of the principal employer to take care of such issues. Whatever amount is paid to the contractor towards wages includes statutory components like PF, ESI, etc. You may take up the issue with the local Labour Department authorities for resolving the issue, with all records substantiating your argument. In cases of contravention, the principal employer will be fined and jailed.
With regards,
Madhusudan
From India, Vijayawada
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