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Dear Coleagues Hi,
I have to discuss some queries reg to Cintrcat Labour
1. Can any one advise whether a contractor Labour is eligible for Bonus as per recent ammendment in Payment of Bonus Act?
2. If a contractor removes his workmen from the job after one year of service, what type of benefits he is liable to get from the contractor/employer.
Please suggest
Thanks & Regards,
Ajay Kr Sinha

From India, Jamshedpur

Dear Ajay Kumar Sinha,
If the contract labour has 30 days attendance in an accounting year and his monthly earnings is Rs. 10,000 and below, he is entitled to get bonus.
If relieved after one year, he is eligible to get PF amount, withdrawal benefit from pension fund etc. in addition to salary arrears.

From India, Bangalore

Dear Friend,
Any employee who works for 30 or more days of work he is eligible for bonus.
It is the obligation of the cotractor to pay the bonus to his employees and not the principal employer. It is only on the profitability or allocable surplus available with the contractor the nous is to be paid. The cntract labour cannot claim the quantum of bonus declared by the [principal employer. If the contraor doesnot pay the bonus, the principal employer has to pay the min. bonus and has to deduct the same from the conttractor's bill..
Sr. Manager-HR

From India, Bangalore

Dear Nealsoni,
Need not. The employee has to work for 5 years contineously without any break in service to get gratuity. As their work is casual in nature and the contract is for one year, the contractor has the right to terminate the services once the contract is over.

From India, Bangalore

Dear G.K.Manjyunath
I am Talking about retrenchment compensation and not about Gratuity, I know that if any person works for 5yr. than only he is eligible for gratuity but in this threat the contractor has removed the workmen and no where is mentioned that he was on 1yr contract so in this case the contractor will have to pay the Retrenchment Compensation to that workmen.
Thanks and Regards

From India, Mumbai

Dear Neilsoni,
In this case the contractor worker has completed one year of continious service with the same contractor, Is he entitle for retrenchment amount@15 days salary for every completed year ??
Thanks and regards

From India, Jamshedpur

Dear Ajay, If the contract labour has 30 days attendance in an accounting year and his monthly earnings is Rs. 10,000 and below, he is entitled to get bonus
From India, New Delhi
Dear Sir, How to engage contact labours in a organisation. What are the procedures. I want to know about shop & establishment acts also. Thanks & Regards, Anthony
From United States

Contract labour is not covered in the definition of employee in the POB Act.Definition of wages is same in CL(R&A) Act and POW Act which has excluded bonus from it.Under the CLRA Act the principal employer u/s 20&21 is liable only if the contractor fails to provide/give the following;
2.Rest room
3.Other facilities
Here again the bonus is not mentioned.Hence bonus is the liability of the contractor
Varghese Mathew

From India, Thiruvananthapuram
Premkumar Nair

Dear Mr. Sinha,
When an employee or contract labour is employed, he is entitled to bonus at least at the rate prescribed under the Payment of Bonus Act irrespective of whether the employer makes profit or not, subject to min.service and salary ceiling. When contract labour is engaged, tenure of employment is specific to period of contract. Such labour can be terminated on expiry of contract or any time on disciplinary ground. It does not attract any provisions of ID Act.
Unless on disciplinary ground and on expiry of contract, he shall be entitled to get pay agnst notice period apart from entitled bonus, if any. EPF & ESI benefits are to be availed from such authorities.

From India, Mumbai
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