Are We Responsible for Paying Bonuses to Contract Workers Hired Through a Contractor? Seeking Legal Insights

We are utilizing the services of contract employees through a contractor for roles such as peons, canteen workers, and security staff. Is the Principal Employer liable to pay bonuses to these contract workers as per the Bonus Act? Any government orders or court judgments on this matter would be greatly appreciated.

Hi Friend,

Bonuses need to be paid to all employees, whether they are direct or contract employees, if they are eligible. Contractors will pay the bonus to their employees, and the same amount will be charged to the Principal employer. It is the principal employer's duty to check whether the bonus has been paid or not.