Gratuity /bonus To Casual Labour.

How to pass on gratuity /bonus to casual labour.

For casual labour the only deduction is under ESIS act. Gratuity is determined after completion of 5 years. In case of casual labours they are the one who varies from day to day basis hence not covered under gratuity act. With regards to bonus if a casual labour happens to complete more than 30 day in a calendar month then he is entitled to bonus on prorata basis provided he completes 240 days in a calendar or financial year.
Jaikishen Kumtekar

Dear Mr Jaikishen Kumtekar,
The only condition for all types of employees (season/part time/casual/probationer) to get bonus is that he/she should have worked in the establishment for not less than thirty working days in that accounting year.
Completing 240 days has nothing to do with the eligibility for bonus.
regards,
Kamal.

Dear Karnal,
240 days is a must for payment of Bonus in a calendar year. 30 days is the infancy period and Bonus is calculated on yearly basis and it is paid yearly. It is deemed to be deferred wages. Hence 240 days completion is a must.

Dear Mr Jaikishen Kumtekar,
Can you plz give give reference of sections of Payment of Bonus Act 1965, which says 240 days of employment is a must for eligilibity for bonus.
Section 8.0 of Payment of Bonus Act 1965 mentions only one condition to be eligible for bonus that is completion of 30 days of employment in that acconting year.
Where you read the second condition plz let this forum know?

Dear Kamal,

As you know that Bonus is termed to be deferred wages and Section 8 only certifies the eligibility of 30 days for entitlement of bonus. Indeed it is a fact that as per section 8 a employee has to put in 30 days in a year for entitlement of Bonus. There are two type of Bonus i.e. Statutory and PLIB i.e. Productivity Linked incentive BOnus which is linked with the productivity and the working days in the company.

For PLIB the management has to enter into an agreement with the Unions for the %age amount of bonus to be paid to the workman which is linked with productivity and Number of working days. Under section 31 A of the Bonus Act management has been vested with the powers to enter into an agreement with the union in terms of PLIB payment. Hence the PLIB is paid on the number of working days in an company subject to a ceiling of 20%. Hence one of the clause which can be added to the agreement that the workman has to put in 240 days of actual working days in an establishment for claiming bonus or else he will be paid Bonus proportionately.