NEW DELHI: Given the onset of the festive season, the labour department of the Delhi government has issued an advisory to all departments and contractors, arranging manpower for them, to pay bonuses to outsourced workers.
In case of defiance or failure to meet the advisory, the establishment or contractor is liable to face legal action, said the announcement made by SC Yadav, joint labour commissioner. It is mandatory for an establishment, which has employed 20 or more workers on any day during the accounting year, to pay a bonus under the Payment of Bonus Act 1965.
The advisory was issued after the department received complaints regarding non-payment of bonus from a large number of outsourced employees or workers engaged by various government departments through the contractors.
"Your attention is also drawn to the provisions of the Contract Labour (Regulation & Abolition) Act, 1970, responsibility has been cast upon the principal employer to ensure compliance of various Labour Laws by their respective contractors.
Non-payment of bonus is a serious issue and all the principal employers are urged upon to ensure disbursement of bonus to outsourced workers or employees by their contractors in the forthcoming Deepawali festival season," said the advisory.
As per the act, minimum payment or bonus, which is 8.33 per cent of the basic and dearness allowance - roughly one-month salary is to be paid to the employee.
Though the payment should be made within eight months after the accounting year ends on March 31, the establishments or employers customarily release this bonus before or around the time of Diwali.
"It is informed that all the contractor’s establishments are covered under the Payment of Bonus Act 1965, who have employed 20 or more workers on any day during the accounting year. lt is a statutory responsibility of these contractors to pay bonus to its employees since respective contractors are their employers," the advisory said.
"In case of any default, the establishments/contractors are liable for prosecution for non-payment of bonus. In addition to prosecution, the due amount of bonus is recoverable u/s-33 (CI) of Industrial Disputes Act, 1947 and the said amount if not paid, is recovered as arrears of land revenue," the advisory further warned.