Whether annual bonus can be paid directly to the contract employees in absence of labour contractor?

Whether annual bonus can be paid directly to the contract employees in absence of labour contractor?

Dear Anonymous
To the extent possible get done the payment through contractor , in case the contractor has absconded or he has declared his financial incapability to pay- subject to creating adequate paper/evidences that this is being paid on behalf of the contractor and same will be recovered from the contractor.
Shailesh Parikh
99 98 97 10 65
Vadodara

No , else all those contract workers may be deemed as your own employee if such litigation goes to court ensure you don't deal with contract workers directly.

Dear Colleague,
The Contract Labour Act casts clear responsibility on principal employer for payments due to the contract worker in case of failure by the Contractor to pay and the same can be recovered from payments due to him.

Although Prashant 's concern is valid, with proper documentation , this payment can be made without exposure.
Regards,
Vinayak Nagarkar
HR- Consultant

In our opinion according to section 21(4) of Contract Labour (R&A) Act, 1970 in case the contractor fails to make payment of wages within the prescribed period or make short payment, then the principal employer shall be liable to make payment of wages full or the unpaid balance due, as the case may be, to the contract labour employed by the contractor. In our opinion, it is nowhere written that the PE is also to pay bonus amount, if not paid by the contractor to its labour.
R N KHOLA