Duconcontractor
1

Dear Seniors.,
Request you all to please advise on applicability of this act for new establishments and need a clarification on whether employees of a contractor in construction field are exempted ? under this act.
Thanking you in Advance
With best Regards

From India, Bengaluru
Madhu.T.K
4249

An establishment will get infancy protection from the application of Payment of Bonus Act for a maximum period of five years or till the year in which the establishment makes profits whichever is earlier. That means if the establishment makes profit in the first year itself, then it should pay bonus from that first year itself. Once the Act becomes applicable to a company, then it should continue to pay bonus even if it suffers loss in the subsequent years.
Payment of bonus of contract workers is not your responsibility but the contractor should pay it.

From India, Kannur
Duconcontractor
1

Firstly Many Thanks to you for quick response.
Our Firm is a Labour contractor of construction field. here we have regular employees and Labours through non registered sub contractors (frequent in and out) as well.
My query is whether Labor Contractor as an employer is under exempted employers list? of BONUS act ? in fact we do not have any contract employee.
some where I read " employees of a contractor in construction filed are exempted of bonus act." is it so?

From India, Bengaluru
Madhu.T.K
4249

It is true that as per section 32 certain employees are not covered by Payment of Bonus Act and sun clause (vi) of section 32 mandated that employees of contractors engaged in building construction are not under the purview of the Act. But the same has been removed by an amendment. unfortunately, the notification is not available with me right now. I am trying to get it. Once I get it, I will share it to all.
From India, Kannur
Madhu.T.K
4249

Please be informed that through The Payment of Bonus (Amendment) Act , 2007, the section (clause (vi) of section 32) which provided that nothing in the Act will apply to employees of contractor employed in building operations has been removed. Please find he attachment.
From India, Kannur
Attached Files (Download Requires Membership)
File Type: pdf Payment of Bonus(Amendment) Act, 2007.pdf (43.7 KB, 534 views)

Duconcontractor
1

Many Thanks for the details provided.
From India, Bengaluru
amit-pandey1
whether an employee is eligible for payment of bonus for the last year i.e. for the year 2015-16 as arrear, if he was not paid by the office? please help me to find the answer.
From India, Bengaluru
An Astute Performer
Please tell me if this Bonus Act applies on MSME’s into retail businesses.
From India, Delhi
Madhu.T.K
4249

The Act applies to all establishments irrespective of its size of capital investment or turnover. In case of establishments other than factories, the Act applies only if you have 20 or more employees. Therefore, the criterion is not investment but the number of employees.
From India, Kannur
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