Dear All
With due regards, I wish to ask that how far the Principal Employer is liable for the payment of Bonus to the casual/ contract workers employed by third party contractor at the site.
Please advise.
From India , Jamnagar
With due regards, I wish to ask that how far the Principal Employer is liable for the payment of Bonus to the casual/ contract workers employed by third party contractor at the site.
Please advise.
From India , Jamnagar
Contract Labour Act makes the principal employer liable for all wages and dues payable by the contractor.
Definition of wages includes bonus, so it is the responsibility of the Principal Employer to ensure that contractors pay bonus. Obviously the contractor will ask the Principal Employer to pay the amount to them to enable disbursement to the contract workers
From India, Mumbai
2395Definition of wages includes bonus, so it is the responsibility of the Principal Employer to ensure that contractors pay bonus. Obviously the contractor will ask the Principal Employer to pay the amount to them to enable disbursement to the contract workers
From India, Mumbai
Dear Friend,
The payment of Bonus and other statutory payment is the responsibility of the Contractor or under whom the workers are being enrolled. The Principal Employer is only became liable for the payment of Bonus to the casual/ contract workers employed by third party contractor at the site, if the contractor failed to do so. The PE remains liable, where the contractor didn't obtain a licence or directly working by PE.
From India, Mumbai
The payment of Bonus and other statutory payment is the responsibility of the Contractor or under whom the workers are being enrolled. The Principal Employer is only became liable for the payment of Bonus to the casual/ contract workers employed by third party contractor at the site, if the contractor failed to do so. The PE remains liable, where the contractor didn't obtain a licence or directly working by PE.
From India, Mumbai
Mr. Mohanty,
I believe you are wrong in your assumptions.
Please refer to Section 21(4) of Contract Labour (Prohibition and Abolition) Act, where it 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
I believe you are wrong in your assumptions.
Please refer to Section 21(4) of Contract Labour (Prohibition and Abolition) Act, where it 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
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
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
Dear Mr Bannerjee,
Hope you didn't read my opinion or failed to grasp the meaning mentioned there in. Being an elite member, you should not remarks or coments.
The points you're telling, is very much exist in third line of the opinion.
From India, Mumbai
Hope you didn't read my opinion or failed to grasp the meaning mentioned there in. Being an elite member, you should not remarks or coments.
The points you're telling, is very much exist in third line of the opinion.
From India, Mumbai
The principal employer is not liable to pay bonus to the contractor workmen as essentially they are 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 PE in it. The judgment of Kerala High Court in Cominco Binani Zinc Ltd. vs Pappachan decided on 28 December, 1988 : (1989)ILLJ452KER is a case law in this regard. I had used this very effectively to counter such a claim
From India, Mumbai
From India, Mumbai
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
From Vietnam, Hanoi
Bonus Payment is the responsibility of contractor or PE is purely depends on the spirit of the agreement. Now a days the agreement between PE and Contractor is Monthly gross + Employer's portion of PF & ESI + Service charge of contractor ( either fixed or % basis ) + GST. There are agreements when PE is paying everything ( bonus, leave pay, gratuity, uniform if any etc. etc.) along with monthly bill. If it is paid with the monthly bill , it is the responsibility of contractor to pay bonus. If not, then as and when it will be payable should be reimbursed by the PE.
Until and unless the contractor is getting money how the contractor will pay. At the end of the day contract labor is working for PE. Moreover, the present service charge is very poor - 6% of the gross invoice and in some cases it is 5%. In case of fixed rate it varies between 400/- to 800/- per employee per month.
Let us think on the basis of reality and one full proof / scientific agreement between PE and contractors is essential mentioning all claused.
S K Bandyopadhyay ( WB, Howrah )
CEO - USD HR Solutions
+91 98310 81531
skb@usdhrs.in
From India, New Delhi
Until and unless the contractor is getting money how the contractor will pay. At the end of the day contract labor is working for PE. Moreover, the present service charge is very poor - 6% of the gross invoice and in some cases it is 5%. In case of fixed rate it varies between 400/- to 800/- per employee per month.
Let us think on the basis of reality and one full proof / scientific agreement between PE and contractors is essential mentioning all claused.
S K Bandyopadhyay ( WB, Howrah )
CEO - USD HR Solutions
+91 98310 81531
skb@usdhrs.in
From India, New Delhi
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