Contract labor (which is working in a contract role) is eligible for a bonus. The contractor is considered a licensee under the Contract Labor Act. In the case of eligibility for a bonus, the question arises as to who is liable to pay it.
Yes, indeed, every employee, irrespective of his status, is eligible for a bonus. It is the responsibility of the immediate employer to pay the bonus; otherwise, the principal employer is ultimately held liable for the same.
The principal employer is not responsible for bonus payments to contractor labor. It is the contractor employer's responsibility to pay bonuses to their employees.
Yes, I do agree with Mr. Anil Kaushik that the Principal employer is not at all responsible for bonus payment to contractor labor. It is solely the liability and responsibility of the Contractor to pay the bonus to his employees.
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