The Government of National Capital Territory of Delhi vide its notification dated 2nd November 2020 has directed all the contractors to pay bonus to its employees and to ensure compliance of various Labour Laws.
Section 10 of the payment of Bonus Act provides for a minimum payment bonus of 8.33% of the basic and dearness allowance to the employee/ workers, which comes out to be roughly one month salary of an employee/ worker. As per section 19 of the Act, the bonus is payable within 8 months of the close of accounting year, however, it is customary to pay bonus before, Deepawali.
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 the Contractor to pay bonus to its employees. In case of default, the establishment/contractor are liable for prosecution for non-payment of bonus under section 28 of the Act and 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.
