It is purely a manpower contract with NPCIL(central agency) who is a Principal Employer (PE). Specified no.of worker of different skills to be provided to PE, and it is PEs responsibility to allocate and get the work done. Billing is based on attendance of 8 hours or part of it.
NIT/Tender for Contract dated back to 2013 and work awarded in 2013 itself for 2 years period but extended for another 10 months beyond 2 years. The contract was escalable based on revision in M.wages (central or state).
Payment of Bonus (Amendment) Act notified on 1.1.2016 with retrospective effect of 1.4.2014.
Applicability of retrospective effect for FY 14-15 & FY-16 is challenged by various parties at diff. High Courts which is now pending with Hon.Supreme Court.
In detail:
PE in his Tender value estimation includes :
present Min.Wage,
Transport,
PF,
PPE (like uniform, safety shoe, medical test)
min. bonus @ rs.3500/pa (as per bonus act as on 2013) i.e. rs.11.21 per day of 8 hr duty per worker
workmen compensation insurance,
3rd party insurance +
10% profit on Min.Wage to bidder.
During the subsistence of the contract, min. wage was increased substantially and the same was compensated to contractor by PE from time to time.
Based on tender estimate, bidders quote taking into account of above pay-outs including min.bonus as above.
After revision of bonus Act, the contractor is claiming the difference of Bonus amount bet. rs.3500 and 8.33% of actual M.Wage paid. PE is not willing to consider. PE is releasing final Bill of contractor without paying revised bonus wef 1.4.14 or want to withheld the amount equal to revised bonus and release the balance.
Contractor demands that the onus lies on PE since he had included in the tender estimate.
Matter was raised under ID Act, Conciliation Proceedings under Asst.Labour Commr.(C) was held and ended-up in failure.
In this scenario -
- what is the responsibility of PE wrt CLR act, PB Act on the above issue.
- can the PE withhold the amount of bonus when there is no direct employer-employee relationship as per PB Act
- can the contractor(s) approach Industrial Tribunal under Ministry of Labour ?
- can the contractor(s) approach Hon.Courts for a remedy
Will appreciate if you can throw your expert advice on the issue.
NIT/Tender for Contract dated back to 2013 and work awarded in 2013 itself for 2 years period but extended for another 10 months beyond 2 years. The contract was escalable based on revision in M.wages (central or state).
Payment of Bonus (Amendment) Act notified on 1.1.2016 with retrospective effect of 1.4.2014.
Applicability of retrospective effect for FY 14-15 & FY-16 is challenged by various parties at diff. High Courts which is now pending with Hon.Supreme Court.
In detail:
PE in his Tender value estimation includes :
present Min.Wage,
Transport,
PF,
PPE (like uniform, safety shoe, medical test)
min. bonus @ rs.3500/pa (as per bonus act as on 2013) i.e. rs.11.21 per day of 8 hr duty per worker
workmen compensation insurance,
3rd party insurance +
10% profit on Min.Wage to bidder.
During the subsistence of the contract, min. wage was increased substantially and the same was compensated to contractor by PE from time to time.
Based on tender estimate, bidders quote taking into account of above pay-outs including min.bonus as above.
After revision of bonus Act, the contractor is claiming the difference of Bonus amount bet. rs.3500 and 8.33% of actual M.Wage paid. PE is not willing to consider. PE is releasing final Bill of contractor without paying revised bonus wef 1.4.14 or want to withheld the amount equal to revised bonus and release the balance.
Contractor demands that the onus lies on PE since he had included in the tender estimate.
Matter was raised under ID Act, Conciliation Proceedings under Asst.Labour Commr.(C) was held and ended-up in failure.
In this scenario -
- what is the responsibility of PE wrt CLR act, PB Act on the above issue.
- can the PE withhold the amount of bonus when there is no direct employer-employee relationship as per PB Act
- can the contractor(s) approach Industrial Tribunal under Ministry of Labour ?
- can the contractor(s) approach Hon.Courts for a remedy
Will appreciate if you can throw your expert advice on the issue.