Can Off-Roll Employees Receive Bonuses Without a Salary Structure? Seeking Advice

vishal_dhruv
I am facing a problem concerning the payment of a bonus to off-roll employees. Please confirm whether a bonus can be given to employees working off-roll. They don't have any salary break-up, and also, assume we don't have a standing order of the company. In case they are to be given a bonus, will it be calculated on the basis of a stipend, since we aren't paying them a salary?

I know employees working as trainees/off-roll but not covered under the standing order of the company are eligible to get the same. Please give your comments on the same.

Thanks.

P.S. I have already checked the relevant posts concerning my query but didn't find a solution for this.
vishal_dhruv
Thank you for your response.

Situation Explanation

First, let me explain the situation. We do not have any contractors. We are employing a number of people as off-roll employees, and they have not been issued any appointment letters. They are only being paid in cash, so this amount can be considered as a stipend.

I am aware that if off-roll employees receive benefits from the principal employer under ESIC, even without appointment letters, they would be considered employed by the principal employer.

Bonus Eligibility Query

My question is, in this scenario, can they receive a bonus? Let's assume we do not have any standing orders. Also, please confirm if they are eligible for a bonus, would it be calculated based on the stipend being provided?

Please assist me with this query.

Thank you.
Prashant B Ingawale
Irrespective of whether the appointment letters are issued or not, these "Contract Employees" are your employees. So, morally, you should pay a bonus to them.
Vishnu_remidi
Maybe you can pay them half salary (if the stipend is Rs. 8500 per month, 50% i.e., Rs. 4250) of the month as an annual bonus.
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