Hello everybody,
As we are new to the site, we were searching for the bonus topic. We came across this website, so can anyone help us with this problem?
We work in an R&D department of the Central Government as contract laborers. Our wages are paid based on a daily attendance system and are paid through a contractor. Our problem is that our working days are based on the organization's workdays, so it may vary around 26 or 27 days depending on the month. We have been working as contract laborers in the same organization for the past 12 years. Our contractors change as per the tender system, so we have not received any bonus from the contractors or the organization. Until now, around 12 contractors have been changed. Whom should we ask now, the organization or the contractors? We have checked the rules, but we can't find proper solutions or a step-by-step procedure to get the proper point. Additionally, we receive a salary of around 8k or 9k after deductions like ESI, PF, and professional tax. It is said that a laborer who earns below 10k is eligible for a bonus. We have categories like skilled, semi-skilled, and unskilled. What should we do as per the rules?
Thank you.
From India, Hyderabad
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As we are new to the site, we were searching for the bonus topic. We came across this website, so can anyone help us with this problem?
We work in an R&D department of the Central Government as contract laborers. Our wages are paid based on a daily attendance system and are paid through a contractor. Our problem is that our working days are based on the organization's workdays, so it may vary around 26 or 27 days depending on the month. We have been working as contract laborers in the same organization for the past 12 years. Our contractors change as per the tender system, so we have not received any bonus from the contractors or the organization. Until now, around 12 contractors have been changed. Whom should we ask now, the organization or the contractors? We have checked the rules, but we can't find proper solutions or a step-by-step procedure to get the proper point. Additionally, we receive a salary of around 8k or 9k after deductions like ESI, PF, and professional tax. It is said that a laborer who earns below 10k is eligible for a bonus. We have categories like skilled, semi-skilled, and unskilled. What should we do as per the rules?
Thank you.
From India, Hyderabad
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King1984: Bonus is not applicable to you or your colleagues. The situation you are in is called 'Temp staffing' and used as a measure by firms to control their payroll costs (no bonus, gratuity/ex gratia, etc).
If the below INR 10,000/- rule is applicable, then your employer (the contractor) is already paying it in some component in your monthly salary.
From India, Mumbai
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92If the below INR 10,000/- rule is applicable, then your employer (the contractor) is already paying it in some component in your monthly salary.
From India, Mumbai
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Dear Talentsorcerer,
Where is it written that temp staffing is not eligible for a bonus? Some people have been working here for the past 12 years. On what basis do you claim that they are considered temp staffing? Are you referring to any Indian law or foreign law?
Thank you.
From India, Mumbai
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Where is it written that temp staffing is not eligible for a bonus? Some people have been working here for the past 12 years. On what basis do you claim that they are considered temp staffing? Are you referring to any Indian law or foreign law?
Thank you.
From India, Mumbai
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Keshav Korgaonkar: It isn't written, but the practice of most temp staffing firms is to show payment of bonus as part of the monthly salary (not the real bonus) and to show the bonus as complied with.
You can check salary slips issued by the largest temp staffing employers and validate this (please do leave me a thank-you note then :-) ) and you'll understand why King1984 said salary was paid for 26/27 days - they are being employed as contractual labor and not FTE's - which is why 'Bonus' usually is not paid.
Regarding working for the last 12 years, please read this line carefully by King1984: {{ Quote: We have been working for the past 12 years as contract laborers in the same organization. And our contractors are changed as per the tender system, so we have not received any bonus from the contractors or from the organization, so far, some 12 contractors have been changed }}.
This means that King1984 is:
1) a contractual laborer
2) has had 12 employers in 12 years (1 every year, all as a contractual laborer)
3) is 'deputed/deployed' to the 'client' site
4) is paid as either unskilled, semi-skilled, or (in very rare cases) as skilled labor.
I am not going to point out the labor law and the ways to circumvent legal compliance - you have been a labor consultant for close to 30 years now, so you will know exactly why the 26/27-day payment of 'wages' is being paid.
And please do correct me if I am wrong in any of my assumptions.
From India, Mumbai
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You can check salary slips issued by the largest temp staffing employers and validate this (please do leave me a thank-you note then :-) ) and you'll understand why King1984 said salary was paid for 26/27 days - they are being employed as contractual labor and not FTE's - which is why 'Bonus' usually is not paid.
Regarding working for the last 12 years, please read this line carefully by King1984: {{ Quote: We have been working for the past 12 years as contract laborers in the same organization. And our contractors are changed as per the tender system, so we have not received any bonus from the contractors or from the organization, so far, some 12 contractors have been changed }}.
This means that King1984 is:
1) a contractual laborer
2) has had 12 employers in 12 years (1 every year, all as a contractual laborer)
3) is 'deputed/deployed' to the 'client' site
4) is paid as either unskilled, semi-skilled, or (in very rare cases) as skilled labor.
I am not going to point out the labor law and the ways to circumvent legal compliance - you have been a labor consultant for close to 30 years now, so you will know exactly why the 26/27-day payment of 'wages' is being paid.
And please do correct me if I am wrong in any of my assumptions.
From India, Mumbai
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1. Sir(s),
Though it is clearly mentioned by the initiator of this thread that bonus was not paid to them during the last 12 years of their service, but the following aspects have not been clarified:
(a) Whether any representation was made by them to the employer or the contractor for payment of the bonus as per the provisions of the Payment of Bonus Act, 1965. If so, what was the reply in writing from the employer (CPSU) or contractor?
(b) Such tendency for non-payment of bonus is reported to be continuing for 12 years. Why was the matter not reported to the "Inspector" as appointed under section 27 of the above Act?
(c) Whether the directly employed persons in the CPSU are doing the same type of work as the contractor employees are doing? If so, are such directly employed persons being paid bonus by the said CPSU?
(d) Whether the principal employer i.e. CPSU and the contractors have obtained registration and licenses under the Contract Labour (Regulation & Abolition) Act, 1970?
2. All the above issues are some of the issues that require a person with some knowledge of labor laws to examine the same. It is, however, also mentioned that the change in the name of the contractor every year will, in no way, in my opinion, disentitle the employees from their dues as per the provisions of the above Act. I may further submit that the Honorable Supreme Court of India in their judgment in Bhilwara Dughd Utpadak Sangh's case had termed such practice as "subterfuge." The copy of the judgment is enclosed as an attachment.
3. Further, one of the contributors, Mr. Talentsorcerer, has tried to explain the practice or trend going on in the industry and has tried to justify that no bonus is actually payable, etc. In this connection, I may submit that in this citeHR we discuss the problems or issues raised by the initiators of the thread as the same are submitted and offer our opinion based on the provisions of labor laws. We are not concerned about what is the trend or practice. Perhaps, only the Supreme Courts or High Courts are entitled to treat such practice or trend as violative of any provisions of labor laws as declared by the Honorable Supreme Court as mentioned by me above, and the copy of the same is linked herewith.
From India, Noida
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Though it is clearly mentioned by the initiator of this thread that bonus was not paid to them during the last 12 years of their service, but the following aspects have not been clarified:
(a) Whether any representation was made by them to the employer or the contractor for payment of the bonus as per the provisions of the Payment of Bonus Act, 1965. If so, what was the reply in writing from the employer (CPSU) or contractor?
(b) Such tendency for non-payment of bonus is reported to be continuing for 12 years. Why was the matter not reported to the "Inspector" as appointed under section 27 of the above Act?
(c) Whether the directly employed persons in the CPSU are doing the same type of work as the contractor employees are doing? If so, are such directly employed persons being paid bonus by the said CPSU?
(d) Whether the principal employer i.e. CPSU and the contractors have obtained registration and licenses under the Contract Labour (Regulation & Abolition) Act, 1970?
2. All the above issues are some of the issues that require a person with some knowledge of labor laws to examine the same. It is, however, also mentioned that the change in the name of the contractor every year will, in no way, in my opinion, disentitle the employees from their dues as per the provisions of the above Act. I may further submit that the Honorable Supreme Court of India in their judgment in Bhilwara Dughd Utpadak Sangh's case had termed such practice as "subterfuge." The copy of the judgment is enclosed as an attachment.
3. Further, one of the contributors, Mr. Talentsorcerer, has tried to explain the practice or trend going on in the industry and has tried to justify that no bonus is actually payable, etc. In this connection, I may submit that in this citeHR we discuss the problems or issues raised by the initiators of the thread as the same are submitted and offer our opinion based on the provisions of labor laws. We are not concerned about what is the trend or practice. Perhaps, only the Supreme Courts or High Courts are entitled to treat such practice or trend as violative of any provisions of labor laws as declared by the Honorable Supreme Court as mentioned by me above, and the copy of the same is linked herewith.
From India, Noida
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Hello,
Please note the points below:
1) If your monthly salary (Basic+DA) is below 10K, you are entitled to a bonus.
2) Approach your contractor demanding a bonus. If he does not respond, please approach the authorized person or Director of the R&D Department.
3) If the R&D department fails to meet your demand or you are not given justice, you will have to bring this issue to the Labor Officer or DLC (Deputy Labor Commissioner) in the Central Labor Department in your locality.
Regards, Ganesh.H.N Bengaluru
From India, Bangalore
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Please note the points below:
1) If your monthly salary (Basic+DA) is below 10K, you are entitled to a bonus.
2) Approach your contractor demanding a bonus. If he does not respond, please approach the authorized person or Director of the R&D Department.
3) If the R&D department fails to meet your demand or you are not given justice, you will have to bring this issue to the Labor Officer or DLC (Deputy Labor Commissioner) in the Central Labor Department in your locality.
Regards, Ganesh.H.N Bengaluru
From India, Bangalore
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Dear King1984,
My views on this entire thread are as follows:
1. The Payment of Bonus Act is not applicable to employees engaged by a Department of the Central Government. Refer to Section 32 (iv).
2. Central Government employees are eligible to receive a non-productivity-linked bonus every year, depending upon sanction by the President of India.
3. Whether employees engaged through contractors or outsourced agencies by the Central Government are eligible for this non-productivity-linked bonus is a big question for me. I am not aware of it.
4. Whether employees are paid on a daily rate (26/27 days) or a monthly rate (30/31 days) is not a criterion to determine if employees are contractual labor or full-time equivalents (FTE), as stated by our Talentsorcerer. The criteria for the bonus does not depend on whether an employee works 26/27 days or 30/31 days. I am completely confused after reading Talentsorcerer's response.
5. Temporary staffing or permanent staffing is not a criterion for a bonus under the Payment of Bonus Act. It is also not a criterion under the Central Government's non-profit-linked bonus, to the best of my knowledge. The term "temporary staffing" used by our learned Talentsorcerer is very confusing to me. I am unsure why employees working for 12 years would be considered temporary staff.
6. Contracts between the Department of the Central Government and various contractors retaining the same employees under different contractors appear to be sham contracts in my opinion.
7. According to a recent judgment of the Supreme Court (2015 LLR 95), long-term contractual appointments are considered unfair labor practices. Following this logic, employing contract labor for an extended period should also be deemed an unfair labor practice. Where are the regulations and the abolition of contract labor in this scenario?
8. Paragraph 10 of the V Schedule of the Industrial Disputes Act, 1947, prohibits employers from hiring workmen as badlis, casuals, or temporaries and continuing to employ them in that manner for years with the intention of depriving them of the status and privileges of permanent workmen. Engaging the same contract laborers for years should fall under the same category as Paragraph 10 of the V schedule, in my view.
9. Our esteemed member Harsh Kumar rightfully pointed out that the arrangement or practice by the Department of the Central Government, as quoted in this thread by the initiator, is a "subterfuge."
10. Lastly, as mentioned by our esteemed member Harsh Kumar, our focus here should be on discussing the law and not just the practice. I would add that we need to address prevailing practices that do not align with the law.
I extend my sincere thanks to our esteemed member Talentsorcerer. Thanks to his posts, I had the opportunity to write all this, and my knowledge has been refreshed.
From India, Mumbai
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My views on this entire thread are as follows:
1. The Payment of Bonus Act is not applicable to employees engaged by a Department of the Central Government. Refer to Section 32 (iv).
2. Central Government employees are eligible to receive a non-productivity-linked bonus every year, depending upon sanction by the President of India.
3. Whether employees engaged through contractors or outsourced agencies by the Central Government are eligible for this non-productivity-linked bonus is a big question for me. I am not aware of it.
4. Whether employees are paid on a daily rate (26/27 days) or a monthly rate (30/31 days) is not a criterion to determine if employees are contractual labor or full-time equivalents (FTE), as stated by our Talentsorcerer. The criteria for the bonus does not depend on whether an employee works 26/27 days or 30/31 days. I am completely confused after reading Talentsorcerer's response.
5. Temporary staffing or permanent staffing is not a criterion for a bonus under the Payment of Bonus Act. It is also not a criterion under the Central Government's non-profit-linked bonus, to the best of my knowledge. The term "temporary staffing" used by our learned Talentsorcerer is very confusing to me. I am unsure why employees working for 12 years would be considered temporary staff.
6. Contracts between the Department of the Central Government and various contractors retaining the same employees under different contractors appear to be sham contracts in my opinion.
7. According to a recent judgment of the Supreme Court (2015 LLR 95), long-term contractual appointments are considered unfair labor practices. Following this logic, employing contract labor for an extended period should also be deemed an unfair labor practice. Where are the regulations and the abolition of contract labor in this scenario?
8. Paragraph 10 of the V Schedule of the Industrial Disputes Act, 1947, prohibits employers from hiring workmen as badlis, casuals, or temporaries and continuing to employ them in that manner for years with the intention of depriving them of the status and privileges of permanent workmen. Engaging the same contract laborers for years should fall under the same category as Paragraph 10 of the V schedule, in my view.
9. Our esteemed member Harsh Kumar rightfully pointed out that the arrangement or practice by the Department of the Central Government, as quoted in this thread by the initiator, is a "subterfuge."
10. Lastly, as mentioned by our esteemed member Harsh Kumar, our focus here should be on discussing the law and not just the practice. I would add that we need to address prevailing practices that do not align with the law.
I extend my sincere thanks to our esteemed member Talentsorcerer. Thanks to his posts, I had the opportunity to write all this, and my knowledge has been refreshed.
From India, Mumbai
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Dear King1984,
In the flow of writing my views on your entire thread as above, one thing is totally missed out, i.e. an answer to your last sentence. You are advised to approach any good lawyer who is practicing in the Labour Court.
From India, Mumbai
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In the flow of writing my views on your entire thread as above, one thing is totally missed out, i.e. an answer to your last sentence. You are advised to approach any good lawyer who is practicing in the Labour Court.
From India, Mumbai
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