How Does the Payment of Bonus Act Affect Construction Workers in Tamil Nadu?

Application of the Payment of Bonus Act to the establishments under the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act in Tamil Nadu

The Payment of Bonus Act applies to establishments where 20 or more people are employed on any day during an accounting year. The Act mandates the payment of an annual bonus to eligible employees. On the other hand, the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act aims to regulate the employment and service conditions of construction workers.

In Tamil Nadu, it is essential to understand how these two Acts interact when it comes to establishments falling under both legislations. Employers need to ensure compliance with the specific provisions of each Act to avoid any legal issues and provide fair compensation to their employees. It is crucial for HR professionals and employers to stay informed about the intricacies of these Acts to uphold workers' rights and maintain a harmonious work environment.

Application of Payment of Bonus Act to Building and Other Construction Workers in Tamil Nadu

In response to the recent order issued by the Governor of Tamil Nadu, it has been mandated that the Payment of Bonus Act, 1965, is now applicable to establishments falling under the definition of clause (j) of sub-section (1) of Section 2 of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996. Specifically, this directive applies to establishments where fewer than twenty workers and not fewer than ten workers were employed during the accounting year of 2019.

This alignment of the Payment of Bonus Act with the Building and Other Construction Workers Act aims to ensure that workers in the construction sector are also eligible for bonus payments as per the provisions of the Payment of Bonus Act, 1965.

To comply with this new regulation, establishments in Tamil Nadu falling under the specified criteria need to take the following steps:

🎯 Determine the total number of workers employed during the accounting year of 2019.
🎯 Identify the workers falling within the purview of the Payment of Bonus Act, ensuring that the eligibility criteria are met.
🎯 Calculate and disburse bonus payments in accordance with the provisions of the Payment of Bonus Act, 1965.
🎯 Maintain accurate records of bonus payments made to eligible workers for future reference and audits.

It is crucial for establishments to adhere to this new directive to ensure compliance with the law and uphold the rights of building and other construction workers in Tamil Nadu.

References
- Notification issued by the Governor of Tamil Nadu regarding the application of the Payment of Bonus Act to building and other construction workers.