Dear All,
It has been noted that most of the contract employees in export houses do not receive their bonuses.
I have conducted over 2000 audits and consistently found that the principal employer states that it is the contractor's responsibility to pay the bonus, but the contractors never provide the bonus to their workers.
On one occasion, a contractor fraudulently presented a bonus sheet. When I cross-checked the signatures of the workers with the salary sheet, I discovered discrepancies in the writing style of the names and signatures.
Most of the time, I found that a contractor uses the same ESI/PF numbers across several units and circulates the same documents in all units.
For example, let's say there are 500 employees in unit A. The contractor deducts the ESI/PF as per legal requirements and deposits it in two or three separate challans instead of a single challan. The contractor then provides the challan according to the requirements of other factories.
To manipulate the calculation and make the amounts appear consistent with the actual manpower, the contractor adjusts the amount deposited by adding or subtracting seven days (sometimes adding overtime amounts) to match the challan amount.
This unethical practice needs to stop.
Best Regards, Sajid Ansari
From India, Delhi
Acknowledge(0)
Amend(0)
47It has been noted that most of the contract employees in export houses do not receive their bonuses.
I have conducted over 2000 audits and consistently found that the principal employer states that it is the contractor's responsibility to pay the bonus, but the contractors never provide the bonus to their workers.
On one occasion, a contractor fraudulently presented a bonus sheet. When I cross-checked the signatures of the workers with the salary sheet, I discovered discrepancies in the writing style of the names and signatures.
Most of the time, I found that a contractor uses the same ESI/PF numbers across several units and circulates the same documents in all units.
For example, let's say there are 500 employees in unit A. The contractor deducts the ESI/PF as per legal requirements and deposits it in two or three separate challans instead of a single challan. The contractor then provides the challan according to the requirements of other factories.
To manipulate the calculation and make the amounts appear consistent with the actual manpower, the contractor adjusts the amount deposited by adding or subtracting seven days (sometimes adding overtime amounts) to match the challan amount.
This unethical practice needs to stop.
Best Regards, Sajid Ansari
From India, Delhi
Acknowledge(0)Amend(0)
The situation described raises serious concerns regarding the non-payment of bonuses to contract employees in export houses. To address this issue effectively, the following steps can be taken:
1. Legal Compliance Review:
- Verify the legal obligations of both the principal employer and the contractor regarding bonus payments. Refer to the relevant labor laws in India, such as the Payment of Bonus Act, to ensure compliance.
2. Documentation Verification:
- Conduct thorough checks on the bonus sheets, salary records, and ESI/PF documents to identify discrepancies or inconsistencies, as highlighted in the audits.
3. Employee Feedback Mechanism:
- Establish a confidential channel for employees to report any irregularities or non-payment of bonuses. Encourage open communication to address concerns promptly.
4. Contractor Evaluation:
- Evaluate the performance and integrity of contractors based on their adherence to labor laws, bonus payments, and document authenticity.
5. Training and Awareness:
- Provide training sessions for both contractors and employees on their rights, entitlements, and legal obligations regarding bonus payments and social security contributions.
6. Collaboration with Authorities:
- If necessary, involve relevant authorities such as the labor department or regulatory bodies to investigate fraudulent practices and enforce compliance.
By implementing these measures, organizations can ensure fair treatment of contract employees, uphold legal standards, and promote ethical practices in the workplace.
From India, Gurugram
Acknowledge(0)Amend(0)
1. Legal Compliance Review:
- Verify the legal obligations of both the principal employer and the contractor regarding bonus payments. Refer to the relevant labor laws in India, such as the Payment of Bonus Act, to ensure compliance.
2. Documentation Verification:
- Conduct thorough checks on the bonus sheets, salary records, and ESI/PF documents to identify discrepancies or inconsistencies, as highlighted in the audits.
3. Employee Feedback Mechanism:
- Establish a confidential channel for employees to report any irregularities or non-payment of bonuses. Encourage open communication to address concerns promptly.
4. Contractor Evaluation:
- Evaluate the performance and integrity of contractors based on their adherence to labor laws, bonus payments, and document authenticity.
5. Training and Awareness:
- Provide training sessions for both contractors and employees on their rights, entitlements, and legal obligations regarding bonus payments and social security contributions.
6. Collaboration with Authorities:
- If necessary, involve relevant authorities such as the labor department or regulatory bodies to investigate fraudulent practices and enforce compliance.
By implementing these measures, organizations can ensure fair treatment of contract employees, uphold legal standards, and promote ethical practices in the workplace.
From India, Gurugram
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.
Contract employee & Principal employer 2017.pdf
EMPLOYEE CONTRACT.docx