Industrial Relations And Labour Laws
Dy Lab Comm, Pb (retd), Consultant And Qualified
+2 Others

Does Contractor Labour is elegible for Bonus and garatiuty? please anyone give me reply Ramesh rathore
11th December 2009 From India, Bhopal
The term contract labour is a relative term and for the principal employer (for whom he works) only he is a contract employee but for the contractor with whom the principal employer has contracted the employee engaged by him at the work place of the principal employer is his pay roll employee. It is between the contractor and the employee that the relationship is that of employer and employee. As such he is eligible to all benefits including Bonus and gratuity as if he is an employee under the rolls of the contractor. However, the principal employer is expected to ensure that the contractor's employee working in his plant is getting bonus as per the Bonus Act and if the contractor has not paid it, the principal employer can interfere and make the payment and recover it from the payments due to the contractor.
11th December 2009 From India, Kannur
With utmost respect, I differ with the view of respected Madhuji sir. S.21(4) of CLRA only permits recovery of wages from the contractor which the PE has paid on behalf of contractor and not the bonus unpaid.
12th January 2010 From India, Chandigarh
well..i agree wid mr. says d principal employer need nt pay gratuity n bonus since it dusnt fall under d definition of wages... seniors kindly help!!
12th January 2010 From India, New Delhi
Certainly, I did not say that the Principal Employer should take care of payment of GRATUITY but I believe that he has to ensure that the Contractor has paid Bonus to his employees ENGAGED in the Principal Employer's place of work and if the Principal Employer comes to know that the Contractor has not paid Bonus to his employees engaged in his establishment, the Principal Employer should intervene and make payment and recover the amount so paid from the contractor.
13th January 2010 From India, Kannur
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