Dear All,
Greetings.
What will be the liability of principal employer if a contractor is paying only 8.33% bonus to his employees even if he is in profits and capable to make the bonus payment on 20% ?.
As per the Payment of Bonus Act, 1965 every employer (including contractor) should assess his financial capability of paying the bonus through Form A & B and the bonus percentage should be derived accordingly. But in majority of the cases contractors not even bother to make the Form A & B and pays the minimum bonus of 8.33%.
I will be really thankful If anyone can provide any judgement in this regards.
Thank you.
Regards,
Arshad Khan

From India
The responsibility on the part of Principal Employer is to the extent of a minimum bonus of 8.33%. The 20% is the maximum limit which only could be ascertained & declared by the direct employer, the contractor. It's not practical for the PE to impose certain higher %age of bonus arbitrarily. Your version of higher profitable can be refuted by the concerned. Unless the workers involved raise a dispute or resort to agitation nothing concrete could be expected.
From India, Bangalore

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