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Rama mohan Acharya (Manager HR(Legal))     11 May 2011

Applicability of Bonus for contract workers in PSUs

In a CPSU the work of sanitation and loading unloading is being carried out by awarding contract .Is the bonus is applicable to the contract workers working in the PSU . My querry is in relation to the section 20 of the Payment of Bonus ACt.
Kindly advise



Learning

 3 Replies

pratik (self working)     11 May 2011

1) As sub section 20 (2) say's ave as otherwise provided in sub- section (1) so first we have to look what does the section 20 (1) has to say because sub section (1) overrides the sub section (2) becaue words are used as (((((save as otherwise provided in sub- section (1)))))

2) Sub Section (1) say's if the income is less than 20 % of the GT (Gross Total Income) than only this section apply . (this section means section 20). so u have to see that whether your gross total income is less than or more than. If the income is less than then Bonus act will apply  & if more than it will not apply. 


This my interpretation no let's see what are LD members want to say . If possible they may give us the citation the hole case law of it. 


1 Like

V.S RAGHAVAN (Deputy Manager Labour Establishment)     13 May 2011

Prima facie, contract workers may not come under the definition of employee under the said act. Further, the definition of employee under the CDA rules of the CPSU will also have to be taken into account. To illustrate, some CPSUs follow statutory rules like FRSR etc. In such cases, the question of payment of bonus to contract workers may not arise.

(Guest)

KINDLY NOTE THAT.

1.EMPLOYMENT IS A CONTRACT BETEEN EMPLOYEE AND EMPLOYER.JOB OFFER,APPOINTMENT,CONFIRMATION LETTER AND SERVICE REGULATIONS GOVERN ALL PROCEDURE.

2 WITH REFERENCE TO LAW PROVISIONS IN BRIEF , .FOR BONUS THE PERMANENT / TEMPORARY 'CASUAL WORKERS WHO ARE DIRECTLY ON PAY ROLL OF EMPLOYER AND HAVE COMPLETED  WORK OF MINIMUM 30 DAYS OR MORE ARE ENTITLED FOR BONUS

3.CONTRACT LABOURERS ARE EMPLOYEES OF CONTRACTOR AND SALARY IS PAID BY CONTRACTOR TO THEM WHO IS MAINTAINING THEIR RECORD .THOSE ARE EMPLOYEES OF CONTRACTOR AND HENCE EVEN FOR BONUS THE CONTRACTOR IS RESPONSIBLE FOR BONUS PAYMENT OF SAID EMPLOYEES OF CONTRACTOR.

4.THIS IS JUST BRIEF SUGGESTION , KINDLY SEND EXACT DETAILS FOR DETAILED REPLY.GOOD LUCK.


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