Understanding the Contractor Labour Act: Are Contractors Entitled to Leave and Bonuses?

I would like to request information regarding the Contractor Labour Act. Specifically, I am inquiring whether any contractor, employee, or laborer is entitled to leave with wages, casual leave, sick leave, gratuity, and bonus.

I eagerly await your valuable response.

Thank you.

Regards,
Abhishek Singh

A contract workman is entitled to all the above benefits if he fulfills all the necessary criteria, whether for leave, bonus, gratuity, or any other benefits during his employment period. He can claim all of these from his employer, i.e., the contractor.

Thanks

The leave rules that apply are not defined in the Contract Labour Act but in the Factories Act and Shop & Establishment Act. So, the first thing to determine is whether the place they are working is a factory or a shop/establishment. The leave rules of that act will apply. If he fulfills the conditions, he is eligible for all the leaves provided under the act. Of course, the duty to provide the same is with the contractor.

Gratuity and Bonus Responsibilities

Gratuity comes under the Gratuity Act. There is no liability on the principal employer. It is the contractor who will be liable for the same. However, increasingly, the courts are going beyond the act and asking principal employers to pay gratuity where the contractors fail to do so.

Bonus, being a part of the definition of wages, is to be paid by the contractor, but the principal employer must supervise the same (be present during payment of bonus, ensuring that the correct bonus is paid) and is responsible for the failure to pay the same.