Who Should Handle Contractor Employee Bonuses: Employer or Contractor?

harnek singh
Respected Sir/Madam, please tell me who is responsible for the bonus of a contractor employee. Is it the employer or the contractor? If neither the employer nor the contractor provides a bonus to their employee, who is responsible according to the act?
samvedan
The contractor's employee is not his direct employee and does not have an employer-employee relationship with the Principal Employer. This fact clarifies that the entity with whom the contractor's employee has a direct employer-employee relationship will bear the responsibility to pay any applicable bonus under the act. This advice is contingent on the agreement between the Contractor and the Principal Employer not being a sham! Clear?

Regards, Samvedan
tajsateesh
Hello Harnek Singh,

This topic has been discussed quite a few times earlier. Please see this link: bonus of contractor employee.

Being an old member of CiteHR, you could have first used the research feature before posting this thread.

Regards,
TS
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