Dear Friends,
I'm working in a company at Hyderabad, I have a three man power suppliers who supply man power as per the minimum wages and also they are paying PF and ESI as per compliance.
Now my question is there are few employees who has given up the job in last month ie..August 2017 and am preparing the list of the Bonus to the present employees, one of the man power supplier insisting me to pay the EX-Employees who has been given up the jobs.
as we pay them the daily wages and there is no appointment orders and also the same employee will perform the assign the duties in an another company as per the suppliers requirement and needs.
Please help me to sort out the issue .
From India, Kolkata
I'm working in a company at Hyderabad, I have a three man power suppliers who supply man power as per the minimum wages and also they are paying PF and ESI as per compliance.
Now my question is there are few employees who has given up the job in last month ie..August 2017 and am preparing the list of the Bonus to the present employees, one of the man power supplier insisting me to pay the EX-Employees who has been given up the jobs.
as we pay them the daily wages and there is no appointment orders and also the same employee will perform the assign the duties in an another company as per the suppliers requirement and needs.
Please help me to sort out the issue .
From India, Kolkata
Dear Anand,
I think that the Financial Year comprising of the period from April 1 to March 31 is the Accounting Year being followed in your establishment for the purpose of bonus under the Payment of Bonus Act,1965. Therefore, the employees given up their jobs in August,2017 had actually worked in your establishment as contract labor in two Accounting Years viz., 2016-'17 and 2017-'18 respectively. From your post, it is not discernible how long they worked in the year 2016-'17 i.e., from 01-04-2016 to 31-03-2017. However, one can conveniently infer that they had been in your service in the Accounting Year 2017-'18 till the relinquishment of their jobs, i.e., from 01-04-2017 to 31-08-2017. As of now you are burdened with the liability of payment of bonus only for the Accounting Year 2016-'17 before 30-11-2017. Not withstanding the mode of their payment, they actually worked in your establishment as contract labor in the afore-said two Accounting Years. Needless to emphasize that contract labor also are entitled to bonus ( of course from the contractor) if they worked for a minimum of 30 days in an Accounting Year in an establishment and the Principal Employer has to reimburse the contractor in this regard and thus ensure his vicarious liability. I think that taking into a/c the indirect commitments of the contractor like EPF, ESI or Insurance premia for EC under the EC Act,1923 as the case be, bonus, gratuity etc., you would have computed the contractor's charges. As far as I know no PE issues appointment orders to his contract labor. So the claim of the contractor for bonus to the ex- contract labor worked in your establishment during both the years is legally correct and after verifying his records in this regard you have to pay the bonus due to such contract labor through the particular contractor but ensure the payment without fail.
From India, Salem
6018I think that the Financial Year comprising of the period from April 1 to March 31 is the Accounting Year being followed in your establishment for the purpose of bonus under the Payment of Bonus Act,1965. Therefore, the employees given up their jobs in August,2017 had actually worked in your establishment as contract labor in two Accounting Years viz., 2016-'17 and 2017-'18 respectively. From your post, it is not discernible how long they worked in the year 2016-'17 i.e., from 01-04-2016 to 31-03-2017. However, one can conveniently infer that they had been in your service in the Accounting Year 2017-'18 till the relinquishment of their jobs, i.e., from 01-04-2017 to 31-08-2017. As of now you are burdened with the liability of payment of bonus only for the Accounting Year 2016-'17 before 30-11-2017. Not withstanding the mode of their payment, they actually worked in your establishment as contract labor in the afore-said two Accounting Years. Needless to emphasize that contract labor also are entitled to bonus ( of course from the contractor) if they worked for a minimum of 30 days in an Accounting Year in an establishment and the Principal Employer has to reimburse the contractor in this regard and thus ensure his vicarious liability. I think that taking into a/c the indirect commitments of the contractor like EPF, ESI or Insurance premia for EC under the EC Act,1923 as the case be, bonus, gratuity etc., you would have computed the contractor's charges. As far as I know no PE issues appointment orders to his contract labor. So the claim of the contractor for bonus to the ex- contract labor worked in your establishment during both the years is legally correct and after verifying his records in this regard you have to pay the bonus due to such contract labor through the particular contractor but ensure the payment without fail.
From India, Salem
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