The Payment of Bonus Act,1965 does not differentiate between a contract worker and other workers. It casts responsibility on all employers , covered by the Act, to make payment of bonus to his employees subject to conditions mentioned in the Act.
The Principal Employer not being employer of contract workers, is not liable for payment of Bonus. The contractor who engages the contract labour, has to make payment of bonus,if applicable, as he is actually their employer.
Loading of bonus amount in the contractual payment made to the contractor by the Principal Employer is quite natural. But dont mention that component as bonus component.
In the event, contractor does not pay bonus to his workers, responsibility to pay unpaid amount of Bonus will not come on the Principal Employer. Such responsibilities of PE arise only in case of non payment of wages. As bonus( as per the Act ) is excluded from the definition of' Wages' as defined under the Payment of wages Act,1936, bonus will in no situation would be PEs responsibility. Such contract workers may have to make a complaint against their em[ployer, before the authority under the Act, for relief.
There is no legal requirement on the part of PE to ensure that contractor makes payment of bonus to his workers, however, morally, it is desirable to do so, as the contract workers are also working within our premises and any disruption in normal work by them might adversely affect our interest.
The Principal Employer not being employer of contract workers, is not liable for payment of Bonus. The contractor who engages the contract labour, has to make payment of bonus,if applicable, as he is actually their employer.
Loading of bonus amount in the contractual payment made to the contractor by the Principal Employer is quite natural. But dont mention that component as bonus component.
In the event, contractor does not pay bonus to his workers, responsibility to pay unpaid amount of Bonus will not come on the Principal Employer. Such responsibilities of PE arise only in case of non payment of wages. As bonus( as per the Act ) is excluded from the definition of' Wages' as defined under the Payment of wages Act,1936, bonus will in no situation would be PEs responsibility. Such contract workers may have to make a complaint against their em[ployer, before the authority under the Act, for relief.
There is no legal requirement on the part of PE to ensure that contractor makes payment of bonus to his workers, however, morally, it is desirable to do so, as the contract workers are also working within our premises and any disruption in normal work by them might adversely affect our interest.