FESTIVAL BONUS & MINIMUM WAGES

Dear Sir,
I have question regarding Durgapuja Bonus & Minimum wages of a house keeping person.
The House keeping person is providing services to an IT MNC, he did not get his puja Bonus or say the festival bonus for the last 3 years.The company which has the contract says that the IT COMPANY does not give the money or bonus & he cannot give the bonus.But this MNC COMPANY provides Bonus to out scourced Engineers the bonus .
What should this House keeping person (sweeper) do ? is there any option or legal document ?.Where should he go?.
Lastly this sweeper wants to know the minimum wages applicable for him applicable in WEST BENGAL.
Please kindly show the path.
Regards
Banerjee

Hi,
Please visit this page - Paycheck.in India - Minimum Wage in West Bengal w.e.f July 1, 2015 to December 31, 2015, to know the minimum wages.
With Regards
Mr.Thumbs Up

Pooja bonus is not statutory. Bonus payable within 8 months of close of financial year falls under payment of bonus act, 1965.

The sweep we is entitled to bonus provided he has worked for more than 30 days in the year. The amount is payable would not necessarily be during Pooja time. It has to be paid within 8 months of the end of the financial year. If Pooja bonus is paid, it can be deducted from the statutory bonus.
I assume the salary of the sweeper is less than ₹10,000
However, the amount is not large. Since salary for computation is capped at ₹3500 per month, if bonus is paid, it will be only ₹3500 . Do not confuse this with the voluntary bonus that engineers would be getting.

Dear Banerjee,
Since the Payment of Bonus Act,1965 is applicable to the MNC in which the house keeping employee is engaged as a contract labour, he is entitled to bonus subject to the usual conditions of eligiblity as stated above by other members. Puja Bonus is a customary bonus given by the employer out of his discretion and as such it can not be claimed by the employee as a matter of right. But, the statutory bonus should be paid to even to the contract labour subject to his eligibility. Even the amount of customary bonus paid can be adjusted in the statutory bonus payable. By whom it is to be paid is the question here. The Principal Employer has vicarious liability towards all the statutory dues to contract labour for the entire period of service rendered for his establishment. In case of refusal by the PE and the Contractor, he can make a complaint against BOTH u/s 21 to the Authority under the PB Act,1965 or raise a dispute under the Industrial Disputes Act,1947.

As per my limited knowledge, the contractor is supposed to pay any/all payouts. Please keep us updated on the further information/data you get on this topic. Thanks.

Dear Banerjee,

You have two queries:-

1. Bonus/Festive Bonus- Others have already explained the bonus as per PB Act AND the Customary Bonus. What is reflecting from your write up is that the PE is not providing bonus amount to Contractor and the contract labor(sweeper) is expecting bonus. The usual practice is actual cost + serve charge basis arrangement. If that is not, the contractor will deny to pay bonus though the contract labor is eligible for at least the minimum bonus - 3500/- or less based on actual calculation. The contract terms and condition should changed accordingly to avoid any future legal dispute.

2. Minimum wages for sweeper at WB - As per last circular effective 01.07.2015 to 31.12.2015 it is for Zone-A - Rs. 6972/- per month and for Zone-B - 6547/- PER MONTH and in both cases 5% HRA as per WB House Rent Allowance Act. These circulars i.e Minimum wages are available at 6, Church Lane, Kolkata-700001.

For any further queries you may contact me as per below.

Thanks & regds,

S K Bandyopadhyay

USD HR Solutions



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Companies operating in India has to obey the law of the land and have to be guided by the provisions laid down very clearly in the laws. Bonus is a mandate , it cannot be avoided / delayed , requested to ensure compliance else yourself as an HR personnel will get into trouble.