Dear all friends I want to know that who is responsible for payment of bonus and gratuity in case of contractor employees. Thanks Sheetal gupta
From India, Delhi
dear sheetal contractor him self is responsible for payment of bonus and gratuity to his employee. i feel principle employer is respnisible for payment of wages to contractor employees. tks j s malik
From India, Delhi
Dear, The principal employer is the only responsible for the payment of Gratuity & Bonus. regards, Parvez.
From India, Ahmadabad
DEAR pravez
if u have read something like that please elaborate it with clauses of particular
act .pls go through conract labour act than we will discuss on the same issue.
principle employer is responsible for wages of contract workers and as i know bonus and gratuity is not wages.
tks
js malik

From India, Delhi
Dear Member,
The Prinicipal Employer is liable for all default on the part of the Contractor. In relation to Payment of Bonus and Gratutity, the statute provision keeps silent. We all know very well that, Government is the largest employer engaing contractual labours. Therefore, there is a silent provision for Bonus & Gratutiy for contractual workmen.
Regards,
Murugavel.B
Dy.Manager - HR

From India, Madras
Dear Shweta
Contractor is responsible for bonus & gratuity according to the act & if he fails to give then in this case principal employer is liable to give bonus & gratuity and principal employer can recover this amount from contractor later on
Rahul

From France, Paris
dear all
i have given explaination earlier also and ask you to give your comment with judgement or based on act.there is a provision in act or no provision in act ,no word i have listen like silent provision.
reagarding bonusand gratuity----neither the contract labour act nor the nor payment of bonus act /payment of gratuity act provide that employee engaged through contractor will be entitle for bonus /gratuity from principle employer and it was held by kerala high court that principle employer is liable to pay wages to the empoloyee of the contractor if later fails to make the payment of wages to his employee.it has been further held bonus,gratuity will not be payable by the principle employer to the workers engaged by contractor since the bonus and gratuity does not come within the perview of wages.
you are advised to refer COMINCO BINANI ZINC LTD VS PAPPACHAN,1989 LLR 123(KERALA HIGH COURT)
TKS
J S MALIK

From India, Delhi
Dear Malik Sir
I have gone thru the act & your comments and came to know that YOU ARE ABSOLUTELY RIGHT.Prncipal Employer is liable only for wages.
I want to know one more question that if any contractor does not take a license after many days of work in any establishment & running continuosly then in this case who is liable principal emolyer or contractor.
Rahul

From France, Paris
Dear rahul
If contractor supply contract labour without valid license and employer paying through contractor in such case that employee directly employed by employer not contractor hence principal employer responsible to pay all dues.
sachin

From India, Mumbai
Dear Members,
Mr.Malik has rightly answer the query that the P E in only responsible for non payment of wages only & that too when the contractor fails to make the payment.According to section 21(1) of C L Act,1970 the contractor is liable to make the payment of wages to its workers & in case of failure the P E under section 21(4) is liable to make the payment.
Regards
R.N.Khola
Sr.Associate
Skylark Associates, Gurgaon

From India, Delhi
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