Are We Liable for Bonus Payments to Contractors After Extending Their Work?

We have 5 contractors in our new manufacturing field. Their work orders are from 01-07-2011 to 31-03-2012. However, their work has been extended for one month until 30-Apr-2012. So, do they need to make a provision for a bonus for their workers? The contractors have stated that it is not applicable to them. Is it the company's liability?

If the Payment of Bonus Act is applicable to these contractors, they are liable. In fact, the contractors are liable for all labor laws as per the strength of their firm.

As the principal employer, you are not responsible for the payment of bonuses to contract labor.

Thank you.

Regards,

Your company is not liable to pay bonuses to the employees of contractors. As a principal employer, you are liable to pay wages. According to the Wages Act, bonuses are excluded from the definition.

Regards,
Vishal