The Delhi government has directed al its departments and agencies to ensure that contractors engaged by them give Diwali bonus to temporary workers, in view of the complaints received from outsourced staff.
An advisory issued recently by the Labour Commissioner stated that all the contractors establishments, who have employed 20 or more workers on any day during the accounting year, are covered under the Payment of Bonus Act, 1965.
“It is a statutory responsibility of the contractor to pay bonus to its employees for being their employer,” it said.
A large number of workers are engaged by various Delhi government departments through contractors. Complaints regarding non-payment of bonus by the contractors have been received from outsourced workers, the advisory read.
“The Payment of Bonus Act, 1965 is applicable on all private establishments and also establishments set up by state governments, like the ICSIL which employs 20 or more workers on any day during the accounting year,” it said.
Section 10 of the Act provides for a minimum payment bonus of 8.33 per cent of the basic salary and dearness allowance to the workers. The bonus is payable after eight months of the close of accounting year as per section 19 of the Act, however, it is customarily paid before Diwali.
“In case of default, the establishments/contractors are liable for prosecution for non-payment of bonus under section 28 of the Act,” the advisory said.
In addition to prosecution, the due amount of bonus is recoverable under Industrial Disputes Act, 1947 and the said amount, if not paid, is recovered as arrears of land revenue, it added.
The Labour Commissioner drew attention of the officers concerned at various departments and agencies of Delhi government to the fact that it was responsibility of the principal employer to ensure compliance of various Labour Laws by their respective contractors as per provisions of the Contract Labour (Regulation & Abolition) Act, 1970.
Non-Payment of bonus is a “serious issue” and all the principal employers are urged to ensure disbursement of bonus to outsourced workers and employees by their contractors on the occasion of Diwali festivali, the advisory added.