Please guide me about employees engaged on Contract basis in a Central Govt. of India Enterprise drawing salary below 10000 p.m. are eligible to get bonus as per latest amendment. Regards Arindam
From India, Jalandhar
From India, Jalandhar
Dear Under the Bonus Act there is no exemption for Contract Employees. You will have to calculate 8.33% of Rs 3500/- or actual Salary if it is less than Rs 3500/- and pay the minimum Bonus . with kind regards, V.Sounder Rajan Chennai – 600 001. Off : 044-42620864, 044-65874684 ,
From India, Bangalore
From India, Bangalore
Dear, Contract Labours also fall under the definition of Employee as per the Bonus Act. So, they are eligible for bonus. The quantum of bonus to be paid will be decided by the top management of your organization. So, consult them for the percentage of bonus to be paid. Normally, CL are paid bonus at 8.33% but this is not the guiding principle. Regards, Nilendra
Dear Mr. V.Sounder Rajan Thanks for your reply. Please suggest me what to do if the management refuses to pay such bonus amount to the contract employees engaged for more than two years and drawing salary less than Rs 10000 PM. Regards, Arindam
From India, Jalandhar
From India, Jalandhar
Dear Mr. Nilendra Thanks for your reply. Please suggest me what to do if the management refuses to pay such bonus amount to the contract employees engaged for more than two years and drawing salary less than Rs 10000 PM. Regards, Arindam
From India, Jalandhar
From India, Jalandhar
Dear, Management of your company is not directly liable to pay bonus to the contract labour. They are not employees of your establishment. If they decide not to pay bonus to the contact labour no legal action can be taken directly on them. Regards, Nilendra
Dear Arindam Contract labour are not your direct employees and hence their right to claim bonus is available in them only against their employer, the contractor. Their entitlement here depends upon their employer's (contractor) balance sheet and profit and loss account. There is no legal right in contract labour to claim bonus from the principal employer on the basis of principal employer's results in an accounting year. Thanks & Regards Kalyan R Manager - Personnel Sundaram-Clayton Ltd Brakes Division Chennai - 600 058. Mobile: 9840942232
From India, Madras
From India, Madras
Dear all, Thanks all for your reply. Please clarify me another thing. If any employee is directly employed by any Govt. of India Enterprise and salary is also paid directly by the company. And the above employee is engaged on contract basis by the same employer. In this case whether the management is liable to pay bonus as per the latest amendment of the act. Regards, Arindam Choudhury
From India, Jalandhar
From India, Jalandhar
please refer to section 32 of the Payment of bonus act .. there are certain govt. and other establishment on whom act don’t apply. so look out in particularly to your establishment and decide.
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