Dear all ,
hi,
As a contractor we have not quoted bonus in the initial quote , now the employees are demanding for bonus , which the principal employer is denying to pay stating that this is not included in your quot.
My question is weather the contractor is liable to pay bonus if the principal employer is not ready to pay or remembers ? what is the notification for the under bonus act? please suggest with notification .
Shashikant N
From India, Mumbai
hi,
As a contractor we have not quoted bonus in the initial quote , now the employees are demanding for bonus , which the principal employer is denying to pay stating that this is not included in your quot.
My question is weather the contractor is liable to pay bonus if the principal employer is not ready to pay or remembers ? what is the notification for the under bonus act? please suggest with notification .
Shashikant N
From India, Mumbai
Hello,
I understand your predicament. The basics onthe subject are:
As contractor you will continue to remain vulnerable under payment of Bonus Act 1965.
If you like more insights in this subject, kindly provide more details like the form of your organization, your Shops Act registration, ESI & PF code and whethr you you are compliant with Minuimum Wages Act and with these legislations and the number of workers you provide to various principal employer. This will help determine applicability of Payment of Bonus Act 1965 to your establishment and we may proceed thereafter!
Regards
samvedan
November 19, 2010
-----------------
From India, Pune
315I understand your predicament. The basics onthe subject are:
- The Bonus is a "share in the profits" of the estabishment.
- A "contractor" (whether a sole proprietor, or a partnership or an incorporated company is an establishment. It will be assessed for applicability of Payment of Bonus Act 1956 under that act.
- The "principal employer" to whom the contractor provides "contract labour" is NOT obliged under law to pay "bonus" to contractor's employees unless the contract is proved to be sham and the employer-employee relationship is decided in favour of the workmen provided by the employer.
As contractor you will continue to remain vulnerable under payment of Bonus Act 1965.
If you like more insights in this subject, kindly provide more details like the form of your organization, your Shops Act registration, ESI & PF code and whethr you you are compliant with Minuimum Wages Act and with these legislations and the number of workers you provide to various principal employer. This will help determine applicability of Payment of Bonus Act 1965 to your establishment and we may proceed thereafter!
Regards
samvedan
November 19, 2010
-----------------
From India, Pune
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Notification No G.S.R. 1128(E) Contract Labour (Regulation and Abolition) Central Amendment .pdf
LABOUR CONTRACT AGREEMENT.doc
Contract Labour Act.zip