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Bonus to contract labour

Mani (Accountant) (53 Points)

14 June 2013

Is principal employer required to pay Bonus to Contract Labour?

In case if the contractor is responsible and if he doesn't fulfil, is the principal employer finally responsible?

Pls Clarify!

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Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (5275 Points)
Replied 24 June 2013

Originally posted by : Mani
	Is principal employer required to pay Bonus to Contract Labour? In case if the contractor is responsible and if he doesn't fulfil, is the principal employer finally responsible? Pls Clarify! Whoever it is the Contractor also gots the profit, since he is taking profit, he too eligible to pay the Bonus to it's employees under Normal Practice. Here, the Principal Employer has to ensure whether the Bonus is paid to the Contract Employees or not. In the Wage Pattern itself, the Principal Employer has to make the break up which is inclusive of Bonus. The Bonus Act may talks about the Infancy Period ie, any organisation's age is below 5 years that has been exempted to pay Bonus, but in the same act it is clearly mentioned that, if the Organisation starts to getting Profit within 2 years, then it has to pay the Bonus to its employees from the Origin with Interest, that is why? Most of the Organisations are paying bonus from the starting Budget Year itself. Since the Contractor is the Contractor to the Principal Employer, the Parent of the Contractor shall be Contract Labour Act (Regulation & Abolition). So you have to pay the Bonus to your Contract Employees, as a Principal Employer, you should ensure with the Contractor, whether the Bonus has been disbursed or not.

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Santosh Kumar (Article) (29 Points)
Replied 11 January 2014

If the contarctor is employing less than 20 workers are the provisions of the act appliacble.....(assuming that the provisions of the act are applicable to the principal employer).....

Is the Principal Employer liable to pay bonus......

Plzzzz........clarify along with related Sections...