Most organizations do not pay gratuity and earned leave to contract workers. This means they are not eligible for gratuity and earned leave. Could you please inform me about the rules regarding leave, gratuity, and bonus for contract workers?
Thank you.
From India, Ahmadabad
Acknowledge(0)
Amend(0)
6Thank you.
From India, Ahmadabad
Acknowledge(0)Amend(0)
As per the contract act they r eligible but only few contract company pay it but remember they all maintain fake register for the same
From India, Faridabad
Acknowledge(2)
Amend(0)
From India, Faridabad
Acknowledge(2)Amend(0)
As per Section 8 - Eligibility of Bonus, every employee shall be entitled to be paid by their employer in an accounting year, a bonus in accordance with the provisions of this Act, provided they have worked in the establishment for not less than thirty working days in that year. Gratuity and leave are both applicable for contract workers. Leave calculation is 20:1, or gratuity as per the Gratuity Act ((Basic+DA)/26*15=***).
Thank you.
Regards,
From India, Kolkata
Acknowledge(3)
Amend(0)
Thank you.
Regards,
From India, Kolkata
Acknowledge(3)Amend(0)
The contract workers are also the workers of contractors, and they are eligible for gratuity, earned leave, and bonus. It is the principal employer's liability to pay these benefits to workers.
Regards,
Rahul
From India, Calcutta
Acknowledge(1)Amend(0)
Regards,
Rahul
From India, Calcutta
Acknowledge(1)Amend(0)
Dear Abhijeet, Thanks for ur information. But requested you to please share if any circular or any rules under any section in which it has mentioned. Regards Pankaj Kr. Das
From India, Gurgaon
Acknowledge(0)Amend(0)
From India, Gurgaon
Acknowledge(0)Amend(0)
Clarification on Contract Workers' Benefits
With due respect, I believe there might be a conceptual misunderstanding. You mentioned that contract workers are also workers of contractors and stated that it is the liability of the principal employer to pay these benefits to contract laborers.
Typically, contract laborers are of a transient nature. They are not employed with a single principal employer consistently. My question to you is: under such circumstances, how is the principal employer liable to pay leave, bonus, and gratuity for services that were not rendered to them or were rendered to someone else?
Regards
From India, Mumbai
Acknowledge(0)Amend(0)
With due respect, I believe there might be a conceptual misunderstanding. You mentioned that contract workers are also workers of contractors and stated that it is the liability of the principal employer to pay these benefits to contract laborers.
Typically, contract laborers are of a transient nature. They are not employed with a single principal employer consistently. My question to you is: under such circumstances, how is the principal employer liable to pay leave, bonus, and gratuity for services that were not rendered to them or were rendered to someone else?
Regards
From India, Mumbai
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Gratuity to contract labour.docx