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Whether contractor is liable to pay bonus to contract labour employed in educational institutions (to whom payment of bonus act is not applicable)?
From India, Noida
Payment of Bonus as per the Bonus Act 1965 is based on the available and allocable surplus calculated as per the act. The contractor is liable to pay Bonus to his workmen provided he fulfills conditions / preview of the Act
From India, Madras
Sir, I would like to know whether contractor is liable to pay bonus if he supplies employees to an educational institution which is not run for profit.
From India, Noida
Dear friend,
Section 32(v)(b) of the Payment of Bonus Act,1965 exempts the employees employed in universities and other educational institutions from all the provisions of the Act. Contract labor, being a system of indirect labor in general, acquire their statutory service conditions only from Acts applicable to the respective establishment to which their services are lent. Therefore, if a contractor exclusively engages his contract labor in an educational institution through out an accounting year, he is not liable to pay bonus to such employees. In case he follows the practice of rotating his employees among various Principal Employers establishments, he has to pay bonus to such employees irrespective of the fact whether he gets reimbursement of bonus or not.

From India, Salem
Thank you Sir. I would like to know if there is any legal document available for the same.
From India, Noida
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