Dear All,
With due regards, I wish to ask how far the Principal Employer is liable for the payment of bonus to the casual/contract workers employed by a third-party contractor at the site. Please advise.
From India , Jamnagar
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With due regards, I wish to ask how far the Principal Employer is liable for the payment of bonus to the casual/contract workers employed by a third-party contractor at the site. Please advise.
From India , Jamnagar
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It's a matter of respect given to the employees by an employer. All the employees wait for the bonus the whole year. It's the principal responsibility of the employer to provide a bonus to the employees working under the company, regardless of whether they are on probation, permanent, or casual.
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The Contract Labour Act makes the principal employer liable for all wages and dues payable by the contractor.
The definition of wages includes bonuses, so it is the responsibility of the principal employer to ensure that contractors pay bonuses. Obviously, the contractor will ask the principal employer to pay the amount to them to enable disbursement to the contract workers.
From India, Mumbai
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2633The definition of wages includes bonuses, so it is the responsibility of the principal employer to ensure that contractors pay bonuses. Obviously, the contractor will ask the principal employer to pay the amount to them to enable disbursement to the contract workers.
From India, Mumbai
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Dear friend,
The payment of bonuses and other statutory payments is the responsibility of the contractor under whom the workers are being enrolled. The principal employer becomes liable for the payment of bonuses to the casual/contract workers employed by a third-party contractor at the site if the contractor fails to do so. The principal employer remains liable when the contractor doesn't obtain a license or is directly working for the principal employer.
From India, Mumbai
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The payment of bonuses and other statutory payments is the responsibility of the contractor under whom the workers are being enrolled. The principal employer becomes liable for the payment of bonuses to the casual/contract workers employed by a third-party contractor at the site if the contractor fails to do so. The principal employer remains liable when the contractor doesn't obtain a license or is directly working for the principal employer.
From India, Mumbai
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Mr. Mohanty,
I believe you are wrong in your assumptions.
Please refer to Section 21(4) of the Contract Labour (Prohibition and Abolition) Act, which provides that in case the contractor fails to make payment of wages to the labor employed, it is the principal employer who may need to step in and make such payment.
The principal employer can recover the same amount paid from the contractor either by the debt payable by the contractor or deducting from any amount payable to the contractor as the case may be.
Thus, it becomes the responsibility of the principal employer to look after the wages.
From India, Mumbai
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I believe you are wrong in your assumptions.
Please refer to Section 21(4) of the Contract Labour (Prohibition and Abolition) Act, which provides that in case the contractor fails to make payment of wages to the labor employed, it is the principal employer who may need to step in and make such payment.
The principal employer can recover the same amount paid from the contractor either by the debt payable by the contractor or deducting from any amount payable to the contractor as the case may be.
Thus, it becomes the responsibility of the principal employer to look after the wages.
From India, Mumbai
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Hi Brijeshwar S,
When it comes to the liability of the principal employer for the payment of bonuses to casual/contract workers employed by third-party contractors at the site, it typically depends on the legal and contractual arrangements in place.
Best,
<a href="https://tunnelrushgame.io">tunnel rush</a>
From Vietnam, Hanoi
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When it comes to the liability of the principal employer for the payment of bonuses to casual/contract workers employed by third-party contractors at the site, it typically depends on the legal and contractual arrangements in place.
Best,
<a href="https://tunnelrushgame.io">tunnel rush</a>
From Vietnam, Hanoi
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Dear Mr. Bannerjee,
I hope you didn't read my opinion or failed to grasp the meaning mentioned therein. Being an elite member, you should not make remarks or comments. The points you're referring to are very much present in the third line of the opinion.
From India, Mumbai
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I hope you didn't read my opinion or failed to grasp the meaning mentioned therein. Being an elite member, you should not make remarks or comments. The points you're referring to are very much present in the third line of the opinion.
From India, Mumbai
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The principal employer is not liable to pay bonus to the contractor's workmen as they are essentially the workmen of the contractor and are bound by the fortunes of the contractor. The Payment of Bonus Act 1965 casts the liability to pay bonus and its calculation on the establishment concerned; there is no reference to the principal employer in it. The judgment of the Kerala High Court in Cominco Binani Zinc Ltd. vs. Pappachan decided on 28 December 1988: (1989) ILLJ 452 KER is a relevant case law in this regard. I have used this effectively to counter such claims.
From India, Mumbai
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From India, Mumbai
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The Principal Employer's liability for paying bonuses to casual/contract workers employed by a third-party contractor generally falls on the contractor. However, if the contractor fails to pay, the Principal Employer may be held responsible under certain labor laws and contract terms. It's best to review the specific labor laws and contract details or consult legal counsel for precise guidance.
retro bowl
From Vietnam, Hanoi
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retro bowl
From Vietnam, Hanoi
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Bonus Payment is the responsibility of the contractor or PE and purely depends on the spirit of the agreement. Nowadays, the agreement between PE and Contractor includes Monthly gross + Employer's portion of PF & ESI + Service charge of the contractor (either fixed or % basis) + GST. There are agreements where PE is paying everything (bonus, leave pay, gratuity, uniform if any, etc.) along with the monthly bill. If it is paid with the monthly bill, it is the responsibility of the contractor to pay the bonus. If not, then it should be reimbursed by the PE when payable.
Until the contractor receives payment, it is challenging for them to pay. Ultimately, contract labor works for the PE. Currently, the service charge is very low - 6% of the gross invoice, and in some cases, it is 5%. In the case of a fixed rate, it ranges between 400/- to 800/- per employee per month.
A well-structured and comprehensive agreement between PE and contractors is essential, covering all clauses.
S K Bandyopadhyay (WB, Howrah) CEO - USD HR Solutions +91 98310 81531 skb@usdhrs.in
From India, New Delhi
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Until the contractor receives payment, it is challenging for them to pay. Ultimately, contract labor works for the PE. Currently, the service charge is very low - 6% of the gross invoice, and in some cases, it is 5%. In the case of a fixed rate, it ranges between 400/- to 800/- per employee per month.
A well-structured and comprehensive agreement between PE and contractors is essential, covering all clauses.
S K Bandyopadhyay (WB, Howrah) CEO - USD HR Solutions +91 98310 81531 skb@usdhrs.in
From India, New Delhi
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