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Contract Labour Bonus

Last post September 2, 2013 05:06 AM by sumitha.walia. 1 repiles.

September 2, 2013 05:01 AM 1
Total Posts: 25
Join Date: August 7, 2007
Rank: Executive
Post Date: September 2, 2013
Posts: 25
Location: United States

Contract Labour Bonus

Hi,

If a principle employer declares 20% of the Bonus to Regular Employees and paid 8.33% to Contract Labour. Then I would seek your assistance to these queries:

1. Why Contract Labour cannot be given 20% Bonus?
2. Legally under which clause they are entitled for Bonus and how much?
3. Do the Contract Labour have any right to demand for 20%?
4. Any manufacturing unit paying 20% Bonus?

Your answers will be important and helpful for me to handle the situation peacefully.

Thanks & Regards,

Wilfred

 

September 2, 2013 05:032
rajasekar
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Post Date: September 2, 2013
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Re: Contract Labour Bonus

Wilfred,
 
Contract labour is paid bonus on the business turnover of the contractory in which they are employed and not on the business results of the principal employer.
Hence all contractors mostly pay 8.33% bonus which is the minimum prescribed.
Regards,
raja
September 2, 2013 05:063
sumitha.walia
Total Posts: 20
Join Date: August 7, 2007
Rank: Executive
Post Date: September 2, 2013
Points: 100
Location: United States

Re: Contract Labour Bonus

1. Since they are employed under a different employer and any default committed by the contractor; then the principal employer will come into the picture.

2. Under section 2(13) of the Payment of Bonus Act.

3. They can demand from their employer.

4. Yes