Dear Sunil Kumar Chauhan ji,
I appreciate your reply.
By law the employer is liable to pay Bonus. In this forum we are here to enhance our knowledge by sharing and participating in discussions.
The employer is liable to pay not only Bonus. He is liable to pay as per minimum wage rates as declared by government. He is liable to make other statutory compliances also. Failure to do so, he is liable for penal action.
Employer may be a contractor. The contractor or any employer can not take a stand that he can not make payment as per minimum wage rate. He can not make payment of Bonus. He can not extend minimum facilities to his employees which are to be provided as per law. He can not make due compliance of applicable law. All this things are not viable to him. He is not getting price for all this things from his principal employer or he is not getting that much profit to do all this statutory things.
Any contract or agreement is not one-sided. It is both sided. Both the parties to it agree to it in totality. You can not take a stand that your principal i.e. other party to contract is not paying you sufficiently by which I can discharge your legal liabilities. Such contract is illegal ab-initio. You are liable for this illegal contract.
I hope you are convinced that principal employer is not liable to make payment of Bonus.
I will appreciate, if you ask how many contract labours are (actually) paid bonus by his employer (contractors)?
Law does not change even you get the truth.
Who is responsible to it? You and I, i.e. WE or the Government who makes the law or the officers who comes to collect money from you?
Now, the Govt. of Maharashtra vide its ordinance dated 17.09.2010 has mandated payment of bonus through cheque / bank account only. But still is there any guarantee that the poor employers who are indulged in the illegal contracts will adhere to this ordinance and if at they, will they not find some way out to recover the amount from employees?
I think, more discussion we should have in this regards.
Thanks with regards.
Keshav Korgaonkar
From India, Mumbai
2555I appreciate your reply.
By law the employer is liable to pay Bonus. In this forum we are here to enhance our knowledge by sharing and participating in discussions.
The employer is liable to pay not only Bonus. He is liable to pay as per minimum wage rates as declared by government. He is liable to make other statutory compliances also. Failure to do so, he is liable for penal action.
Employer may be a contractor. The contractor or any employer can not take a stand that he can not make payment as per minimum wage rate. He can not make payment of Bonus. He can not extend minimum facilities to his employees which are to be provided as per law. He can not make due compliance of applicable law. All this things are not viable to him. He is not getting price for all this things from his principal employer or he is not getting that much profit to do all this statutory things.
Any contract or agreement is not one-sided. It is both sided. Both the parties to it agree to it in totality. You can not take a stand that your principal i.e. other party to contract is not paying you sufficiently by which I can discharge your legal liabilities. Such contract is illegal ab-initio. You are liable for this illegal contract.
I hope you are convinced that principal employer is not liable to make payment of Bonus.
I will appreciate, if you ask how many contract labours are (actually) paid bonus by his employer (contractors)?
Law does not change even you get the truth.
Who is responsible to it? You and I, i.e. WE or the Government who makes the law or the officers who comes to collect money from you?
Now, the Govt. of Maharashtra vide its ordinance dated 17.09.2010 has mandated payment of bonus through cheque / bank account only. But still is there any guarantee that the poor employers who are indulged in the illegal contracts will adhere to this ordinance and if at they, will they not find some way out to recover the amount from employees?
I think, more discussion we should have in this regards.
Thanks with regards.
Keshav Korgaonkar
From India, Mumbai
Dear All,
Please read the second last para of above posting as under:
Now, the Govt. of Maharashtra vide its ordinance dated 17.09.2010 has mandated payment of bonus through cheque / bank account only. But still is there any guarantee that the poor employers who are indulged in the illegal contracts will adhere to this ordinance and IF AT ALL THEY, will they not find some way out to recover the amount from employees?
ALL is missing in the original posting.
I request the administrators of CiteHr to edit my posting accordingly to facilitate you all.
Thanks once again.
Keshav Korgaonkar
From India, Mumbai
Please read the second last para of above posting as under:
Now, the Govt. of Maharashtra vide its ordinance dated 17.09.2010 has mandated payment of bonus through cheque / bank account only. But still is there any guarantee that the poor employers who are indulged in the illegal contracts will adhere to this ordinance and IF AT ALL THEY, will they not find some way out to recover the amount from employees?
ALL is missing in the original posting.
I request the administrators of CiteHr to edit my posting accordingly to facilitate you all.
Thanks once again.
Keshav Korgaonkar
From India, Mumbai
POBC act is applicable in your company for all employees drawing 10000 or less, subject to a ceiling of 20% of Rs 3500= 8400/- and minimum 8.33% on 3500., depending on the last three years balance sheet and provision of available surplus and allocable surplus after observing the process of set on and set off . However, please check whether the company is really operating for the last three years and balance sheet for last three years is published or not. However, even if the company is showing loss in the balance sheet for the last three years and there is no set on available, even then they have to pay 8.33% bonus. Dy labour commissioner may intervene suo moto, if any complain/dispute is lodged to him and the company may land in deep trouble.
Dear All,
Apart from this Bonus issue , i would like to share my quiery regarding the compliance --
1- As per Labour Aboliation Act its manadatory to Principal employer that he should contribute ESI /PF amount as per act ,but if some job contractors are working with premises then is it applicable to share the said contribution by Mgmt?
2- Is it also applicable for canteen contractor ?
Are both agencies comes in Labour contract Act..?
pls have an advise on the same.
regds
Devendra
From India, Pune
Apart from this Bonus issue , i would like to share my quiery regarding the compliance --
1- As per Labour Aboliation Act its manadatory to Principal employer that he should contribute ESI /PF amount as per act ,but if some job contractors are working with premises then is it applicable to share the said contribution by Mgmt?
2- Is it also applicable for canteen contractor ?
Are both agencies comes in Labour contract Act..?
pls have an advise on the same.
regds
Devendra
From India, Pune
1. Contract labor regulation and abolition act do not state that principal employer is responsible to pay ESI and PF to contract labors. Actually the contractor, who is called immediate employer, is responsible to comply with the provisions of ESI and PF. However, in case of violation of the said acts, principal employer is also liable to face penal action from the ESI and PF authorities separately.
2. Practically, there is nothing like job contract. If a contractor is paid on the basis of measurement (like X Rs for Y Kg/Cubic feet/pieces of job done), then also the provisions of minimum wages, ESI and PF act is applicable to the contract labors deployed by the contractor. For example, if the minimum wages declared by the state government is say Rs 170/- day/ labor, the contractor has to deposit PF @ 13.61% and ESI @ 4.75% on the minimum wages. Principal employer has to ensure that such contribution is deposited to PF and ESI department by the contractors( immidiate employer). In fact the act makes it mandatory that payment of labours has to be made in front of an authorized representative of principal employer.
3. ESI and PF is applicable to labors engaged by the canteen contractors also.
4. Each contractor should have their own PF and ESI registration number, in which they should deposit the PF and ESI contribution of their labors. However, if any contractor do not have their own PF and ESI code, the principal employer may get a sub code in their name and deposit the ESI/PF of the contract labors.
Mihir
2. Practically, there is nothing like job contract. If a contractor is paid on the basis of measurement (like X Rs for Y Kg/Cubic feet/pieces of job done), then also the provisions of minimum wages, ESI and PF act is applicable to the contract labors deployed by the contractor. For example, if the minimum wages declared by the state government is say Rs 170/- day/ labor, the contractor has to deposit PF @ 13.61% and ESI @ 4.75% on the minimum wages. Principal employer has to ensure that such contribution is deposited to PF and ESI department by the contractors( immidiate employer). In fact the act makes it mandatory that payment of labours has to be made in front of an authorized representative of principal employer.
3. ESI and PF is applicable to labors engaged by the canteen contractors also.
4. Each contractor should have their own PF and ESI registration number, in which they should deposit the PF and ESI contribution of their labors. However, if any contractor do not have their own PF and ESI code, the principal employer may get a sub code in their name and deposit the ESI/PF of the contract labors.
Mihir
Dear Mr Mihir,
Thanks for your reply..!
my question is that , For labour contractors , we are giving the contribuation of ESI & PF i.e (4.75% & 13.61%) but in case of Job contrcators , job contractors are paying the said amount for their work force .Job contractors are the principal employers for job contracto workmen?
Contrarory for labour contractors we are principal employers. so whether we have to pay the ESI /PF share to Job contractors also?
From India, Pune
Thanks for your reply..!
my question is that , For labour contractors , we are giving the contribuation of ESI & PF i.e (4.75% & 13.61%) but in case of Job contrcators , job contractors are paying the said amount for their work force .Job contractors are the principal employers for job contracto workmen?
Contrarory for labour contractors we are principal employers. so whether we have to pay the ESI /PF share to Job contractors also?
From India, Pune
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