Brijeshwar S
Dear All
With due regards, I wish to ask that how far the Principal Employer is liable for the payment of Bonus to the casual/ contract workers employed by third party contractor at the site.
Please advise.

From India , Jamnagar
sirrockey
Its a matter of respect given to the employees by a employer all the employees wait for the bonus whole year its principle employer responsibility to provide bonus to the employees working under the company no matter if he is working as on probation permanent or casual.

saswatabanerjee
2383

Contract Labour Act makes the principal employer liable for all wages and dues payable by the contractor.

Definition of wages includes bonus, so it is the responsibility of the Principal Employer to ensure that contractors pay bonus. Obviously the contractor will ask the Principal Employer to pay the amount to them to enable disbursement to the contract workers

From India, Mumbai
PRABHAT RANJAN MOHANTY
581

Dear Friend,
The payment of Bonus and other statutory payment is the responsibility of the Contractor or under whom the workers are being enrolled. The Principal Employer is only became liable for the payment of Bonus to the casual/ contract workers employed by third party contractor at the site, if the contractor failed to do so. The PE remains liable, where the contractor didn't obtain a licence or directly working by PE.

From India, Mumbai
saswatabanerjee
2383

Mr. Mohanty,

I believe you are wrong in your assumptions.

Please refer to Section 21(4) of Contract Labour (Prohibition and Abolition) Act, where it provides that in case the contractor fails to make payment of wages to the labor employed, it is the principal employer who may need to step in and make such payment.

The principal employer can recover the same amount paid from the contractor either by the debt payable by the contractor or deducting from any amount payable to the contractor as the case may be.

Thus it becomes the responsibility of the principal employer to look after the wages.

From India, Mumbai
Anonymous
Hi Brijeshwar S,
When it comes to the liability of the Principal Employer for the payment of bonuses to casual/contract workers employed by third-party contractors at the site, it typically depends on the legal and contractual arrangements in place.
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From Vietnam, Hanoi
PRABHAT RANJAN MOHANTY
581

Dear Mr Bannerjee,
Hope you didn't read my opinion or failed to grasp the meaning mentioned there in. Being an elite member, you should not remarks or coments.
The points you're telling, is very much exist in third line of the opinion.

From India, Mumbai
KK!HR
1530

The principal employer is not liable to pay bonus to the contractor workmen as essentially they are the workmen of the contractor and are bound by the fortunes of the contractor. The Payment of Bonus Act 1965 casts the liability to pay bonus and its calculation on the establishment concerned, there is no reference to the PE in it. The judgment of Kerala High Court in Cominco Binani Zinc Ltd. vs Pappachan decided on 28 December, 1988 : (1989)ILLJ452KER is a case law in this regard. I had used this very effectively to counter such a claim
From India, Mumbai
lula-ball
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From Vietnam, Hanoi
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