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Hello everybody
As we are New to cite , we were searching for the bonus topic we came across this website so can anyone help us in this problem

We work in a R&D department of Central Govt as a contract Labours, our wages are paid by daily attendance system and paid through a Contractor so , Our problem is that our working days are based on the organisation works day , So it may come around some 26 or 27 days depending on the Months . We are working from past 12 years as a contract labours in the same organisation .And our Contractors are changed as per the tenders system so we have not received any bonus from the contractors or from the Organization , so till now some 12 nos contractors has been changed , And whom should we ask now the Organization or the contractors. We even checked the rules but we cant find proper solutions or step by step procedure to get the proper point and one more thing we get salary some around 8k or 9k after dedcutions i.e ESI and PF and professional Tax some wht like that . It was sayed that the labour who gets below 10k is elidgble for bonus we have system like Skilled , semi- skilled and un skilled . so what must we do as per the rules
From India, Hyderabad
King1984: Bonus is not applicable to you or your colleagues. The situation you are in is called 'Temp staffing' and used as a measure by firms to control their payroll costs (no bonus, gratuity/ex gratia, etc).
If the below INR 10,000/- rule is applicable, then your employer (the contractor) is already paying it in some component in your monthly salary.
From India, Mumbai
Dear Talentsorcerer,
Where it is written temp staffing is not eligible for bonus? People are working since past 12 years, on what basis you say that they are temp staffing? Are your referring to any Indian law or foreign law?
From India, Mumbai
Keshav Korgaonkar: It isn't written but the practice of most temp staffing firms to show payment of bonus as part of monthly salary (not the real bonus) and show the bonus as complied with.

You can check salary slips issued by the largest temp staffing employers and validate this (please do leave me a thank you note then :-) ) and you'll understand why King1984 said salary was paid for 26/27 days - they are being employed as contractual labor and not FTE's - which is why 'Bonus' usually is not paid.

On the working for last 12 years, please read this line carefully by King1984: {{ Quote: We are working from past 12 years as a contract labours in the same organisation .And our Contractors are changed as per the tenders system so we have not received any bonus from the contractors or from the Organization , so till now some 12 nos contractors has been changed }}

Which means King1984 is:

1) a contractual laborer

2) has had 12 employers in 12 years (1 every year, all as contractual laborer)

3) is 'deputed/deployed' to 'client' site

4) is paid as either unskilled, semi skilled or (very rare cases) as skilled labor

I am not going to point out the labor law and the ways to circumvent legal compliance - you have been a labor consultant for close to 30 years now so you will know exactly why the 26/27 day payment of 'wages' is being paid.

And please do correct me if I am wrong in any of my assumptions
From India, Mumbai
1. Sir(s), Though it is clearly mentioned by the initiator of this thread that bonus was not paid to them during the last 12 years of their service, but following aspects have not been clarified:-

(a) whether any representation was made by them to the employer or the contractor for payment of the bonus as per provisions of the Payment of Bonus Act, 1965. If so, what was the reply in writting from the employer (CPSU) or contractor ?

(b) such tendency for non-payment of bonus is reported continuing for 12 years. Why the matter was not reported to the "Inspector" as appointed under section 27 of the above Act ?

(c) whether the directly employed person in the CPSU are doing the same type of work as the contractor employees are doing ? If so, whether such directly employed persons are being paid bonus by the said CPSU ?

(d) whether the principal employer i.e. CPSU and the contractors have obtained registeration and licences under the Contract Labour (Regulation & Abolition) Act, 1970 ?

2. All the above issues are some of the issues which require a person having some knowledge of labour laws to examine the same. It is however, also mentioned that the change in the name of contractor every year, will in no way, in my opinion, disentitle the employees from their dues as per provisions of the above Act. I may further submit that Hon'ble Supreme Court of India in their judgment in Bhilwara Dughd Utpadak Sangh"s case had termed such practice as "subterfuge". The copy of the judgment is enclosed as an attachment.

3. Further, one of contributor-Mr.Talentsorcerer has tried to explain the practice or trend going on in the industry and has tried to justify that no bonus is actually payable etc. In this connection, I may submit that in this citeHR we discuss the problems or issues raised by the initiators of the thread as the same are submitted and offer our opinion based on provisions of labour laws. We are not concerned about what is the trend or practice. Perhaps, only the Supreme Courts or High Courts are entitled to treat such practice or trend as violative of any provisions of labour laws as declared by the Hon'ble Supreme Court as mentioned by me above and the copy of same is linked herewith.
From India, Noida

Attached Files
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File Type: pdf Bilwara Dughd Utpadak Sangh -vs- Vinod Kumar Sharma SC 2011.pdf (65.9 KB, 152 views)

Hello,
Please note the below points:
1) If your monthly salary (Basic+DA) is below 10K, you are entitled for Bonus.
2) Approach your Contractor demanding Bonus, if he does not respond please approach Authorised Person or Director of R&D Department
3) If R&D department is failed to meet your demand or you are not given justice, you will have to bring this issue to Labour Officer or DLC (Deputy Labour Commissioner) in Central Labour Department in your locality
Regards,
Ganesh.H.N
Bengaluru
From India, Bangalore
Dear King1984,

My views on entire this thread are as under:

1. Payment of Bonus Act is not applicable to the employees engaged by a Department of the Central Government. Refer Section 32 (iv).

2. Central Government employees are eligible to get non productivity link bonus every year depending upon sanction by President of India.

3. Employees engaged through contractors or through outsource agencies by Central Government whether they are eligible for this non productivity link bonus or not is big question to me. I am not aware of.

4. Whether the employees are paid on daily rate (26 / 27 days) or monthly rate (30 /31 days) is not a criteria to decide the employees are contractual labor or FTE as stated by our Talentsorcerer. Criteria for Bonus is not at all depends on whether employee is on 26 / 27 days or on 30 /31 days. I am totally confused reading the response of Talentsorcerer.

5. Temporary staffing or permanent staffing is not a criteria for bonus under the POB Act. Also, it is not a criteria under the Central Government's non profit link bonus according to my knowledge. The term "temporary staffing" used by our learned Talentsorcerer is also very confusing to me. Employees working for 12 years, on what basis they are on temporary staffing.

6. Contracts between the Department of Central Government and the various contractors retaining same employees under such various contractors are sham contracts according to me.

7. As per very recent judgement of Supreme Court (2015 LLR 95), contractual appointment for long period is unfair labour practice. On this logic, contract labours for long period is also unfair labour practice. Where is the regulation and abolition of contract labour here?

8. Para 10 of V Schedule of the Industrial Disputes Act, 1947 prohibits the employer to employ the workmen as badlis, casuals or temporaries and to continue them, as such, for years, with the object of depriving them of the status and privileges of permanent workmen. Engaging same contract labours for years together should fall under same category of Para 10 of V schedule according to me.

9. Our learned member Harsh Kumar has rightly pointed out that such arrangement or practice by the Department of Central Government which is quoted in this thread by the initiator of this thread is "subterfuge".

10. Lastly, as stated by Our learned member Harsh Kumar, we are here to discuss the law and not the practice. I will further add to it, we have to discuss on the prevailing practices which are not as per the law.

My sincere thanks to our learned member Talentsorcerer. Because of his posts, I got the opportunity to write all this. My knowledge is also refreshed.
From India, Mumbai
Dear King1984,
In the flow of writing my views on your entire thread as above, one thing is totally missed out, i.e. answer to your last sentence.
You are advised to approach any good lawyer who is practicing in Labour Court.
From India, Mumbai
We also have a lot of problems in our organization we will post them . So that we can know our rights and rules to follow them
From India, Hyderabad
Dear Friend, Sorry to say that Contractual Employee is not entitiled for Bonus, as per wordings of Contract labour Act, 1970. Rgds
From India, Mumbai
Dear Abhay,
My dear friend, where it is written? Where are the wordings? Which Contract Labour Act 1970 you are referring to? The Contract Labour Act 1970 which I read has no wordings on bonus.
If you give the abstract of said provision or verbatim or wordigs, the members of this forum and the entire HR Fraternity will be benefited by your knowledge.
From India, Mumbai
Dear Friends,
Since Mar 2009 I am contributing and sharing with this forum on what I gained or what I am gaining over the period of my exposure as a Corporate Advisor – Labour Laws and also as a Faculty on Labour Laws. But of late, I started feeling that my contributions are going in to vain and I am just spoiling my valuable time and energy.
There is no part of moderators here.
From India, Mumbai
The practice of contract labour in India is a menace a sham & shame as well. I know this practice is prevalent in most of corporates especially state and central govt. depts. & undertakings. You people may not believe it's not 5 yrs or 10 yrs. it's more than 20 yrs. persons are kept in contract labour category and denied regularisation on the pretext of want of vacancies. The surprise is these categories are employed in regular production line leave alone those on sundry jobs like house keeping, landscapping, loading & unloading etc. Crores of them still fighting with their managements thru' dharnas, demos and hunger strikes etc. with not tangible results. The modus operandi is well known. After expiry of initial few years one contractor's WO is not renewed, in it's place same job is awarded to same contractor in a different name keeping almost everybody on the roll except leaving a few trouble makers. Where the job security for these labourers languish, where are the statutory benefits, what all these labour legislations do to protect their interests? Any no.of judgments of courts, many no.of govts. won't remedy this situation so far. The queries of this nature keep coming in scores.
From India, Bangalore
Sir ,Please help me on this some questions raised please
1. What is the meaning of Contract Labors
2. What benefits there have like Bonus , leaves like Casual Leave, any other
3. What medical benefits will have through the contractor and the Organization. If any accident happens on the work
4. Is there any provisions like Loan through the contractor .
5. How many leaves are there for contract labors for Whole year.
6. Medical leaves or half salary . etc
will be very greatful for the help
And one more we are not much educated so please help us in wording not in Advocate words simple English words will help us more Thanking to all for there valuable Opinions
From India, Hyderabad
# Anonymous
Dear All
I read King1984 question and answer from all members after that I concert Contract Labour Regulation and Abolition act and Bonus act basis of that I Derived two things kindly update me if I am not correct
Responsibility of Principle Employer for bonus
As per act Principle Employer (P.E.) hire a contractor for specific job , PE not hire any employee so there is no responsibility of PE to give bonus
Responsibility of Employer ( Contractor) for bonus
A person is eligible for Bonus if he worked at least 30 working day In a year but contractor labour jobs terminate at every month by issue pay of 26 or 25 days, (Eligibility for bonus.—according to 12(2) The Payment of Bonus Rules, 1975 Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year.)
If I am not correct kindly help me to update my self
Regards
Anurag
From India, Hyderabad
Dear All
I read King1984 question and answer from all members after that I concert Contract Labour Regulation and Abolition act and Bonus act basis of that I Derived two things kindly update me if I am not correct
Responsibility of Principle Employer for bonus
As per act Principle Employer (P.E.) hire a contractor for specific job , PE not hire any employee so there is no responsibility of PE to give bonus
Responsibility of Employer ( Contractor) for bonus
A person is eligible for Bonus if he worked at least 30 working day In a year but contractor labour jobs terminate at every month by issue pay of 26 or 25 days, (Eligibility for bonus.—according to 12(2) The Payment of Bonus Rules, 1975 Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year.)
If I am not correct kindly help me to update my self
Regards
Anurag
From India, Hyderabad
Dear Friend,
if your aren't finding any wordings for bonus related pertaining to contractual employee/labor in Contact Labour Act 1970, in you can refer to applicability clause of Payment of Bonus Act, 1965.
I do hope you'll find your answer.
Rgds

From India, Mumbai
Dear Friend,
However, there is one contradiction. And that is THE WORKING CONDITIONS OF CONTRACT LABOUR (Bonus and Apart from bonus related) is determined by as per segment/industry type wise also. But its completely discretion of Segment/Industry Norms.
Rgds

From India, Mumbai
Dear Abhay_011,
I will, rather this forum will appreciate if you give the abstract of said provision or verbatim or wordings. Also, would you please explain the meaning of your wordings of " there is one contradiction. And that is THE WORKING CONDITIONS OF CONTRACT LABOUR (Bonus and Apart from bonus related) is determined by as per segment/industry type wise also"?
From India, Mumbai
I think Keshav and Harsh have clarified the points in detail. And I don't find any merit in Abhay's arguments also. Here in this particular case, unfortunately, the principal employer is Central Government and that is why all these things have happened. Had it been any other private organisation, the Labour department would have intervened and the contract workers would have got their bonus. For deciding the eligibility for bonus, it is immaterial whether they are daily rated or employed for a fixed period or not. In a conciliation, practically (not going by law), even the salary ceiling of Rs 10000 is not considered no a days.

The main menace is that in the present case it is the government who is the principal employer and the fact that government body is not covered by the Payment of Bonus Act. This cannot be taken for granted because the department cannot escape from the liability of principal employer. In respect of payment of ESI and PF contributions, the contractor has been following the respective law and there seems to be no failure in making these statutory payments. That means, the contractor being the employer of the workers engaged should take initiative and pay the bonus as per law. Moreover, the government department for whom they are engaged should also take initiative and ensure that the bonus is paid to the workers.

Another important thing that I find is that there have been changes in the contractors over these 12 years period but the workers remain the same. Had this situation been in a private organisation, naturally, the labour department would have declared the contract as sham and initiated action against the principal employer. In this scenario, the workers should file a complaint before the appropriate authority, Labour department and find a solution. Normally, the contract value will include an element of bonus also. The same should also be verified. There may be a chance that the department makes payment on CTC basis and the contractor is paying only the salary keeping the bonus element with him.

Regards,

Madhu.T.K
From India, Kannur
Dear Friend, Sure, I’ll explain my wordings. But Ist I wish to know that what you understand by that? Waiting for your revert. Rgds
From India, Mumbai
This is going without direction, therefore, I would close this thread. Madhu.T.K
From India, Kannur
Dear Friends
First of all I would like to say that Mr. Keshav and Mr. Madhu TK have given the exact reply. The Payment of Bonus Act is not at all explaining regarding the category of workmen. The only clause is below Rs.10000/- salary and Minimum 30 days working.
Let us use this for developing our knowledge by learning and sharing. A healthy discussion will lead to gain knowledge and a hot argument will generate hot and will further lead to frustration. Let us not do that and try to learn the correct procedure. Eventhough we have forgotten the ethics in following the correct practice, we must aware of the correct procedure.
If we are wrong let us correct ourselves. Instead if we misguide others, then it will set a bad example about us and our organisation.
The only solution for those contract workforce is to approach a good labour law practicing lawyer of their area and file a complaint with the appropriate authority.
From India, Kumbakonam
Dear,
As per CLRA 1970, any employee engaged for work in an organisation as a contract labour is eligible for Bonus. Bonus Act 1965 depicts it very clearly. Irrespective of any number of contractors change, the principle employer (i.e the organisation for whom you are working) is the sole responsible to get your bonus for the period when the closure of the contractor takes place.
Terminal benefits as per the CLRA 1970 is clear on the subject and you even have all rights to approach the labour commissioner on this issue. Central Government agency has to release the contractors money after assuring all the structures of pay components are paid to the contract labour.
Further for any query please feel free to mail me. I will quote with relevant acts for getting the benefits. I had a practical issue solved on this aspect.
Tks
Sathish
From India, Chennai
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