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The Office of the Commissioner, Labour Department, Government of the National Capital Territory of Delhi issued an advise on October 11, 2023, based on allegations about non-payment of bonuses by contractors and complaints from outsourced workers.
According to the aforementioned recommendation, all contractor's enterprises that employed 20 (twenty) or more people on any day throughout the fiscal year are covered by the Payment of Bonus Act, 1965. At least a bonus of 8.33% of the basic and dearness allowance is mandatory to be paid to the employees or workers. As a result, it is a statutory requirement for contractors to pay bonuses to their employees as employers. The guidance also emphasised the requirements of the Contract Labour (Regulation & Abolition) Act, 1970, which provide that the major employer is responsible for ensuring that their respective contractors comply with various labour regulations.
The notification also adds that if the establishments/contractors fail to pay the bonus, they will face prosecution under section 28 of the Bonus Act, 1965. Furthermore, the unpaid bonus shall be recoverable under section 33(c)(1) of the Industrial Disputes Act, 1947 and if the amount is not paid it will be recovered as land revenue arrears. Although the bonus is payable with 8 months of the close of the fiscal year, the notification urges the employers to ensure the disbursement of bonus before the Deepawali Festival season as it is customary to pa bonus before Deepawali.
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