Payment of Bonus to Outsourced employees (sales)

Querist : Anonymous (Querist) 25 June 2010 This query is : Open

Dear Experts

This refers to payment of bonus to outsourced employees (sales personnel, office boys, administrative personnel) outsourced through Third Party.

Major points of Agreement with Third party:

1. Salary including PF/ESI paid to third party for payment to outsourced employees.

2. Outsourced employees on the payroll of Third Party Company

3. Principal to Principal relationship between Company and Third party

4. agreement is termed as service agreement and third party charges service tax to Company.

Queries:

1. Do the Company legally required to to pay Bonus to such outsourced employees (on the payroll of Third Party)?

2. Will the Company fall under the perview of Principal Employer vis a vis payment of bonus act?

Thanks and Regards

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