Payment of Bonus Act
Zia
(Querist) 01 April 2010
This query is : Resolved
Sir,
My queries are as follows:
01. Is Payment of Bonus Act,1965 applicable to establishments covered under The Building and other Construction Workers Act, 1996.
02. PAyment of Bonus Act is applicable to Factories.But as per Section 32 (vi) of the PAyment of Bonus Act, the Act does not apply to "employees employed through contractors on building operations".
Therefore if any building operations is carried out in the factory premises, whether payment of Bonus act would be applicable to employees engaged in that building operation through the contractor.
Raj Kumar Makkad
(Expert) 02 April 2010
01. Yes.
02. Despite of the referred provision, there are various citations of Apex Court which clearly put the liability of the principal employer to pay the bonus and deduct it from the payment of the contractor. Thus indirectly it is the liability of the factory to ensure that the bonus is paid to the employees engaged by contractor working within factory carrying construction activity.
Zia
(Querist) 02 April 2010
Sir,
Can you please let me know the relevant provision in the Building and other Construction Workers Act, 1996 where applicability of PAyment of Bonus Act is explicitly mentioned.
Second, please let me know the judgements of APEX court where Payment of Bonus applies to construction activity also, has been ordered.
