Can contractual employee demand bonus from Principal Employer?

As I have already mentioned in my previous articles that liability to pay the wages to the contractual workers by the Principal Employer’s has been recognized in section 21(4) of the Contract Labour (Regulation & Abolition) Act, 1970 in case of failure by contractor to pay the wages to its employee. Thus, the wages due to the contract workmen does not include Bonus and Gratuity.

This is made clear by the definition of wages in the Industrial Dispute Act and Payment of Wages Act. Therefore, the Principal Employer is not liable to pay Bonus to the contractual employees.

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Hope this small write up will give insight about pertained subject.

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