Whether contractor is liable to pay bonus to contract labour employed in educational institutions (to whom payment of bonus act is not applicable)?
From India, Noida
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1From India, Noida
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Payment of bonus as per the Bonus Act 1965 is based on the available and allocable surplus calculated as per the act. The contractor is liable to pay bonus to his workmen provided he fulfills conditions/preview of the act.
From India, Madras
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From India, Madras
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Sir, I would like to know whether contractor is liable to pay bonus if he supplies employees to an educational institution which is not run for profit.
From India, Noida
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From India, Noida
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Dear friend,
Section 32(v)(b) of the Payment of Bonus Act, 1965 exempts the employees employed in universities and other educational institutions from all the provisions of the Act. Contract labor, being a system of indirect labor in general, acquires their statutory service conditions only from Acts applicable to the respective establishment to which their services are lent. Therefore, if a contractor exclusively engages his contract labor in an educational institution throughout an accounting year, he is not liable to pay a bonus to such employees. In case he follows the practice of rotating his employees among various Principal Employers' establishments, he has to pay a bonus to such employees irrespective of whether he gets reimbursement of the bonus or not.
From India, Salem
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Section 32(v)(b) of the Payment of Bonus Act, 1965 exempts the employees employed in universities and other educational institutions from all the provisions of the Act. Contract labor, being a system of indirect labor in general, acquires their statutory service conditions only from Acts applicable to the respective establishment to which their services are lent. Therefore, if a contractor exclusively engages his contract labor in an educational institution throughout an accounting year, he is not liable to pay a bonus to such employees. In case he follows the practice of rotating his employees among various Principal Employers' establishments, he has to pay a bonus to such employees irrespective of whether he gets reimbursement of the bonus or not.
From India, Salem
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Bonus act amendment gazette copy.pdf
THE PAYMENT OF BONUS ACT.doc