Bhartiya Akhil
Freelancer
[email protected]
Human Resources

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I Pratiti, am working with a company with HO in Mumbai and manufacturing setup in Umbergaon.
I have tried all the contact numbers on the website. There is no response.
This is regarding a query pertaining to the appointment of labor through a contractor. The contractor supplies labour and charges us for the same in the monthly bill (wages + PF). I have a query on Bonus. Will be great if you can share your views/inputs. Are contract employees eligible for bonuses?
If yes, how far is the principal employer liable to pay the bonus if the contractor fails to pay?
Is bonus a liability of the principal employer if the contract agreement is silent on the 'bonus clause'.
Looking forward to your reply.

From India, Pune
Dear Pratiti ji,

Contractor establishments are not excluded from coverage of Bonus Act and therefore it is the statutory responsibility of the contractors to pay bonus to their employees being they are employers. The contractors will be held liable for prosecution in case of any default in payment of bonus to the contract employees.

According to me, PE is not directly liable to pay bonus to the employees of contractor. But it is the responsibility of principal employer to ensure that the contractors make compliances of the applicable labour laws.

Please be also noted that in the proposed rule 56 under COW Act 2019, it is stated that where the contractor fails to pay minimum bonus to his employee then the principal employer will be responsible for such payment.

Hope the things are cleared to you.

From India, Mumbai
Thank you Akhilji! I shall respond to you on the email shared above!
From India, Pune
Akhilji,
The bonus act doesnt say anything on contractor bonus
Also the wages definition doesnt include bonus.
Is there any statute or judgement/case that mentions the same.
Would be great to have that as I can build up my case accordingly

From India, Pune
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