Legal Question in Employment Law in India

contract labour 1970

Please confirm if the provisions of the Payment of Bonus Act apply to contract workers or not. If yes, please also advice the suitable way of including bonus component in their wage/ salary, as the rates per person are normally agreed between the company and the contractor at the beginning of contract, whereas bonus payment is dependant on company�s profitability, which is ascertained at year end.


Asked on 7/19/07, 5:37 am

4 Answers from Attorneys
Homi Maratha N.N. Maratha & Co.-Advocates

Re: contract labour 1970

good afternoon

yes the bonus act applies to the workers

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Answered on 7/20/07, 5:36 am
Raghavendra Rao Yakama YRR

Re: contract labour 1970

yer the provisions of payment of bonous will apply to the Contract workers also.

Depending upon the agreement after completion of the year the bonous will be paid to the contract workers.

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Answered on 7/21/07, 9:29 am
kavitha balakrishnan kpp associates

Re: contract labour 1970

yes! rates depends upon the contractual agreements etc.,

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Answered on 7/22/07, 11:33 pm

Re: contract labour 1970

Yes,Bonus Act is appliacble to contract labour but their entitlment depends upon the terms of contract.

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Answered on 7/20/07, 8:23 pm


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