How far a principal employer is liable to pay bonus to contractor workers?

Dear All,
As per the bonus Act, every employee who has completed a period of continous 30 days is eligible for bonus for the particular period.
whether the 30 days are inclusive of holidays such as weekly offs and festival days?
When we are supposed to pay the bonus for 30 days, wether is on pro rata basis? or there is any standered amount to pay in such cases? what is the calculation for pro rata?
Rgds,
Vissu

Dear,
The Contract labour act does not provides that the principal employer will pay bonus to the employees of contractor.In one case Kerala high court has also held that bonus will not be payble by principal employer since this do not come within the defination of Wages as per payment of wages act 1936.
Prem Prakash Dagar
Manager-HR

Bonus is not the liability of principal employer as per case study of Kerela high court.
As per Payment of wages act 1937 bonus does not come within the preview of wages.
Thanks,
Dagar

Mr. Hansdah,
i would request you to not act as a moderator, and knowledge expert in HR.
you have no right to call anyone by names. you might be having excellent knowledge in HR, and might understand every jargon, its not the same with everyone, this query i had because though it is a must to be given in our company they are denying it this year for few departments.
so i wanted to know whether it is compulsory.
and for me HRguide doesnt mean that i am a guide it means that Citehr is an HRguide for me.username need not create controversies in your life.and please note person like you will only discourage employees/fellow citehr people from asking questions.
reserve your comments to yourself.

Hi
Pl clarify wheather payment of bonus is applicble to contract workers. If it is wheather it is responsibility of Principal employer or contractor.

My Dear HRguide

* I am sorry, if your feelings have been hurt.

* I never claimed to be a Moderator or SME on HR.. But thanks for your allusions - I appreciate it with gratitude.

* Now that I understand your concern, I have the following to say :

(1) Participants should not expect others to be so omniscient as to understand their problem with full context.

e.g. Your question was : "Is an employer liable to give bonus to its full time permanent employees.

is there any such compulsion clause"

Had anyone else posted this, you yourself would have felt irritation, as the mere mention of "PAYMENT OF BONUS ACT" answers it.

(2) But now that you have explained the problem in the context of your co.; it becomes clear as to "why someone would, even, raise this basic issue".

(3) I understand your predicament now. If the Management has decided something then that's it. Try persuading them, point out the legalities - I wish you success. In my humble opinion - Indian private sector (esp. the small ones and the family owned ones) have no corporate governance at all. For them 'might is right'. I recall what the senior people of Finance in the erstwhile Satyam told the investigators - ".. no one could dare to go against the towering personality of Mr. Raju....".

Well, that is how the cookie crumbles.

(4) About nicknames, you have given me a new insight on how people adopt nicks on the net. Well, of course, its what one "aspires-to-be" and not what-one-already-is.

Please don't take my comments to heart. As HR managers, we know there are all kinds of people on this earth who think in their own ways - and this diversity in thought, is the key to human progress. :)

Here's a few tit-bits about bonus, which may be of interest to you :

*Bonus - the word is derived from Latin root, and means 'something extra' beyond what is normally agreed upon.

*It was generally given at the time of Christmas, as a gift, and to enable workers to tide over their festival hardships.

*In India it started in the textile mills of Surat and Mumbai, and it was given during the Durga Puja- Diwali festivals.

*Bonus is no longer a perk; it has almost become a right.

*There is a nice character in Asterix comics, called Christmasbonus.:-P



Regards.