Govt. of Delhi issues Advisory on Payment of Bonus

The Government of the National Capital Territory (GNCT) of Delhi on 11th October, 2023 issued an advisory based on complaints regarding non-payment of bonuses by the contractors. The government has received these complaints from outsourced workers.

The Commissioner of Labour has stated 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. It is a statutory responsibility of the contractor to pay bonus to its employees since the contractors are their employers.

The Payment of Bonus Act, 1965 is a Central Act and is applicable on all private establishments and also establishments set up by State Government like M/s ICSIL who employees 20 or more workers on any day during the accounting year. The Act provides for a minimum payment bonus of 8.33% of the basic and dearness allowance to the employees/workers. The bonus is payable with 8 months of the close of accounting year, however, it is customary to pay bonus before Deepawali.

The advisory has stated that in case of default, the establishments/contractors are liable for prosecution for non-payment of bonus and in addition to prosecution, the due amount of bonus is recoverable as arrears of land revenue.

The Commissioner also drew attention to the provisions of the Contract Labour (Regulation & Abolition) Act, 1970  that the principal employer bears the responsibility 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/employees by their contractors in the forthcoming Deepawali Festival season.