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Hi, If a company outsources an activity e.g. packing on piece rate basis then who should pay the Bonus to the piece rated employees and on what basis. Regards
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The percentage of bonus, whether minimum or maximum, as decided and declared based on the performance of the establishment in any accounting year has to be paid to the employees on the basis of their total earnings in the particular accounting year. The same formula applies to the outsourced employees also. It is immaterial whether they are monthly salaried or piece-rated employees. Certainly, it is the Principal Employers liability as the services are rendered for his establishment.
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