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Labour Laws Delhi Ministry of Labour and Employment Delhi Shops and Establishments Act, 1954

Delhi Labour Department has issued an advisory on payment of bonus to outsourced workers

23-Sep-2024 | F.No.15 ( 1/1 86% + 46)/Lab/2020/3401-3405

Delhi Labour Department has issued an advisory addressing complaints about non-payment of bonuses to outsourced workers employed by contractors in various government departments. The Payment of Bonus Act, 1965 requires that contractors who employ 20 or more workers must pay a minimum bonus of 8.33% of the basic salary and dearness allowance. Bonuses should generally be paid within eight months after the end of the accounting year, with many opting to pay before Deepawali.

By virtue of the advisory, all contractors are reminded of their legal responsibility to pay bonuses to their employees. Failure to do so may lead to prosecution and recovery of unpaid amounts as arrears of land revenue. Additionally, the Principal Employer is responsible for ensuring that contractors comply with labor laws. Therefore, all Principal Employers are urged to ensure that bonuses are disbursed to outsourced workers before the upcoming Deepawali Festival.

Please refer to the attached document for more details.

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