Should We Pay Equal Bonus To Both Contractual And Payroll Workers? - CiteHR
Labour Law & Hr Consultant
Welfare / Administration

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Dear Siniors,
I want a help from you all related to Bonus payable to Contractual Workers. We is to pay Bonus 10% to our Payroll Workers and we are paying 8.33% (through contractors) to our Contractual Workers. Now my question is that should we pay equal bonus to both types of workers or what we are doing is correct. And also the bonus payable to contractual workers is deppends upon the allocable surplus of company or on the income of Contractors. please reply.
thanking you all.
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Statutory bonus to emplyees is an additional employment benefit derived from the earnings of the establishment in a particular year. In the system of contract labour, contractor's establishment is the original employer and the establishment/contractee with whom the contractor enters into a contract that is fulfilled through the deployment of his own employees in the contractee's premises is called as Principal Employer only in relation to his establishment. The restriction on the nature of activities in which the contract labour are to be engaged, the parity of wages for same or similar kinds of work and other employment benefits like leave in respect of regular employees vis-a-vis contract employees and the creation of vicarious liability in respect of certain statutory payments are only regulatory measures to curb sham contracts and not to change their employment status. Nevertheless, for all purposes both legal and practical, the contractor remains both the de facto and de jure employer of his labour though they are deployed to the principal employer in pursuance of the contract. So, the percentage of the statutory bonus payable to the contract labour has to be determined only on the surplus of the contractor's earning in the particular accounting year.
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