Contract labor in some organizations are paid Statutory Bonus and Leave with wages on monthly basis instead of annual basis. This is basically to meet the statutory compliance as most of the contract labor may work for less than a year and it is difficult to find them when actually the payment is due. It is satisfying the regulatory auditors etc.
However, recently some one raised an objection for this and demanded for ESI & PF contribution on these payments as being paid on monthly basis.
Is it correct?
However, recently some one raised an objection for this and demanded for ESI & PF contribution on these payments as being paid on monthly basis.
Is it correct?