Few garments industries are still following the daily wages concept because of less orders. Garment industries are divided by two. One is compliance factory and second is non compliance factory. Compliance factory means they will have all proper document / system in place to get the orders. Non compliance factories will not have any proper documents and they act as sub-contracting factories to Tier 1 vendors/supplier. To your questions
1. yes you can show for 15 days but you need to have a monthly consolicated one for your reference.
2. It is illegal if you are not providing bonus/EL encashment. For bonus what ever you have said is right. EL encashment is like more than 30 days of balance has to be encashed.
3. Piece work employees - the same clause applicable for
4. Younare right about bonus
5. For PF & ESI: ESI has be calculated with all earning except Bonus and Leave encashment and PF is based on your salary breakup (Basic+DA+allowance+OT) execept 20% of HRA.
anishsheikhDear sir, Thanks for your valuable reply. our factory is a compliance factory. i am still not clear about the bonus. Can we pay bonus on monthly basis.
From India, Delhi
The law says "The bonus should be paid in cash within 8 months from the close of the accounting year or within one month from the date of enforcement of the award or coming into operation of a settlement following an industrial dispute regarding payment of bonus. However if there is sufficient cause extension may be applied for"
According to this bonus under this act, it cannot be paid on a monthly basis. Apart from this bonus like attendance bonus etc can be paid on a monthly basis.
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