Can IDBI Bank Contract Employees Claim Unpaid Bonuses Under the Payment of Wages Act?

Statutory bonus at 8.33% of basic pay is being paid by IDBI Bank to the contractors on a monthly basis as part of their monthly claims. The contractor is expected to disburse the amount due from April 22 to March 23 during the Diwali festival in November 2023. One contractor has not parted with the bonus amount in respect of three employees whose services have since been shifted to a new contractor.

Can employees raise a claim under the Payment of Wages Act 1936?

Can the group employees raise a claim under the Payment of Wages Act 1936 since the definition of wages includes (c) any additional remuneration payable under the terms of employment (whether called a bonus or by any other name)?

Procedure for claiming the statutory bonus amount

If not, what is the procedure for claiming the statutory bonus amount in the Samadhan portal? Are we to file a complaint or raise it as a dispute through the Samadhan portal? Kindly guide.

Regards,
K. Sathyanarayanan
IDBI Bank Contract Employees Union, Chennai

In the absence of any provision in the Payment of Gratuity Act for raising a dispute for non-payment of bonus, you can raise it as an industrial dispute. You can file a complaint directly with the appropriate authority, rather than filing it through the online portal.

The conciliation should also focus on the genuineness of the contract because changing the contractor but keeping the employees is one of the examples of a sham contract that will always point the finger against the principal employer.