Outsourcing and Bonuses: Who's Responsible for Paying Piece-Rate Workers?

raju_khose
If a company outsources an activity, for example, packing on a piece-rate basis, then who should pay the bonus to the piece-rated employees and on what basis.

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umakanthan53
Bonus Payment for Outsourced Employees

The percentage of bonus, whether minimum or maximum, as decided and declared based on the performance of the establishment in any accounting year, must be paid to the employees based on their total earnings in that particular accounting year. The same formula applies to outsourced employees as well. It is immaterial whether they are monthly salaried or piece-rated employees. Certainly, it is the Principal Employer's liability as the services are rendered for their establishment.
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