Dear all, hello.
I am new to this forum.
I am a labour contractor , supply labourers to ordnance factory. Since last 3 year. My company is registered with , EPF, ESIC, ST and shop and establishment . And when ever I get any contract I take licence from regional labour commissioner . So I think by timely depositing PF , ESIC. And service tax I fulfil this compliance.
Now our principle employer ordnance factory had mentioned in tender terms and condition that contractor is liable towards statutory liabilities , but no provision is made in the format of price bid to quote bonus . There is no space or colume to quote bonus. Though EPF , ESIC and ST are mention in price bid. And PE also reimburse us PF, ESIC , ST. But no bonus, though bonus is also a statutory liability. Now I know that contractor is liable to for payment of bonus and PE is to asure that bonus is paid to labourers. So I would like to know that when PE is suppose to asure bonus is paid to labourers then should he not asure that as a statutory liability bonus should be offered or paid to contractor so that a contractor can pass it to labourers.
Can any action be taken against PE for violations and negligence.
What can a contractor do.if he is not allowed to quote statutory liability.
PE saywaiting for your valuable suggestions.
Thanks
Regards
From India, Mumbai
8I am new to this forum.
I am a labour contractor , supply labourers to ordnance factory. Since last 3 year. My company is registered with , EPF, ESIC, ST and shop and establishment . And when ever I get any contract I take licence from regional labour commissioner . So I think by timely depositing PF , ESIC. And service tax I fulfil this compliance.
Now our principle employer ordnance factory had mentioned in tender terms and condition that contractor is liable towards statutory liabilities , but no provision is made in the format of price bid to quote bonus . There is no space or colume to quote bonus. Though EPF , ESIC and ST are mention in price bid. And PE also reimburse us PF, ESIC , ST. But no bonus, though bonus is also a statutory liability. Now I know that contractor is liable to for payment of bonus and PE is to asure that bonus is paid to labourers. So I would like to know that when PE is suppose to asure bonus is paid to labourers then should he not asure that as a statutory liability bonus should be offered or paid to contractor so that a contractor can pass it to labourers.
Can any action be taken against PE for violations and negligence.
What can a contractor do.if he is not allowed to quote statutory liability.
PE saywaiting for your valuable suggestions.
Thanks
Regards
From India, Mumbai
Dear Farukh,
It is employeer's liability to pay the bonus to all employees (Permanent or Contract), kindly talk to the concerned person for the same. May be end of the year they may give the same.
Regards
Praveen Bhosale
From India, Bangalore
It is employeer's liability to pay the bonus to all employees (Permanent or Contract), kindly talk to the concerned person for the same. May be end of the year they may give the same.
Regards
Praveen Bhosale
From India, Bangalore
Dear Farukh & Praveen: There is no statutory liability for the principal employer to ensure payment of bonus to the contract labour. There is no provision in the Payment of Bonus Act 1963 to this effect. Hence it is for the contractor to meet this liabilbility from the firm's profit. Regards
KK
From India, Bhopal
KK
From India, Bhopal
Dear Farukh,
Plz confirmed the nature of industry where you supplying the manpower. Plz note Employees employed thruogh contractor's on bulding operations are not covered under the Provision's of Paymnt of Bonus act 1965.
From India, New Delhi
Plz confirmed the nature of industry where you supplying the manpower. Plz note Employees employed thruogh contractor's on bulding operations are not covered under the Provision's of Paymnt of Bonus act 1965.
From India, New Delhi
Dear Farookh,
I do agree with MR. K.K. Nair. For Contractor's employees, the bonus is to be paid on the profit of the contractor and not on the principal employer. Hence, as per your book profit you have to pay the bonus. While quoting your rate, you could have added portion in your rate. Like ESI, PF Bonus is not fixed percentage. Bonus depends on the profitbiity earned and there should be allocable surplus to pay. Whether you make profit or loss, you have to pay min. bonus of 8.33%.
G.K.Manjunath,
Sr. Manager-HR
From India, Bangalore
I do agree with MR. K.K. Nair. For Contractor's employees, the bonus is to be paid on the profit of the contractor and not on the principal employer. Hence, as per your book profit you have to pay the bonus. While quoting your rate, you could have added portion in your rate. Like ESI, PF Bonus is not fixed percentage. Bonus depends on the profitbiity earned and there should be allocable surplus to pay. Whether you make profit or loss, you have to pay min. bonus of 8.33%.
G.K.Manjunath,
Sr. Manager-HR
From India, Bangalore
Find answers from people who have previously dealt with business and work issues similar to yours - Please Register and Log In to CiteHR and post your query.
EPF & Misc. Provision Act.1952 & the scheme.ppt
Model _Factories_Rule s regarding provision of Sanitary Napkins in Womens Toilet.pdf