Payment Of Bonus - Bonus Payment

Dear Sir, Please clarify whether Payment of bonus act is applicable to contract labour hired by PSU Departments through contract for office upkeeeping/cleaning services. . As per Act section 32, Establishment under the control of Central Govt/State Govt are exempted from this act. If applicable , who will pay the bonus to contrast labour. Rates quoted by the contractor are lumpsum rates for office up keeping jobs.

Relevant clause of Section 32 of the Payment of Bonus Act,1965 is extracted below for ready-reference sake:
"(iv) employees employed by an establishment engaged in any
industry carried on by or under the authority of any
department of the Central Government or a State
Government or a local authority; "
Generally PSUs of the State or Central Govts are not run by any department of the Govt. One should not confuse with automobile maintenance workshop run by the PWD or a Govt Press run by the Printing and Stationary Dept for the personnel employed therein are Govt servants.
Bonus to contract Labour is to be paid by the contractor; however the principal employer is vicariously liable.

Sir, Please clarify whether we can issue form V to a civil contractor, if his license/registration has been revoked by the labour deptt. . As restoration process is taking time . work has been stopped due to revocation of license and registration . Contractor want to get new license due to crumble some procedure of labour deptt. Can be issued him new form-V for getting new licence and registration No.

Dear friend,
Revocation of a contractor's licence already granted under the CLRA Act,1970 would be normally done u/s 14(1) of the Act for the reasons mentioned in cl(a) or cl(b) of the same. The licence granted is work-specific. It is a quasi judicial action revoking the licence valid for a period of 12 months. Till the expiry of the remaining period, the same person can not be permitted to continue the contract work based on a fresh licence and new form-V.Therefore, if it is urgent, better engage a new contractor or postpone the work till the period of revocation is over.