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WAGES

41 How to calculate monthly wages for loss of pay under minimum wages ? Should be divided by 26 days OR 30/31 days ?

If the said employee is under minimum wages, the rate of salary to be divided by 26 and paid on actual number of days present on the site (-) weekly offs taken.
42 How to calculate monthly wages for loss of pay under minimum wages ? Should be divided by 26 days OR 30/31 days ?

If the said employee is under minimum wages, the rate of salary to be divided by 26 and paid on actual number of days present on the site (-) weekly offs taken.
43 What is the limit of Overtime in Maharashtra ? How different it is from Karnataka or Haryana ?

Rate of overtime is defined under each State Shops & Establishment Act and Rules. Thus for Maharashtra it is defnied under Bombay Shops & Establishment Act as SIX hours a week, making it 24 hours a month. For Karnataka or Haryana it is 50 hours a quarter. One needs to refer respective State leave and overtime provisions under the said Shops & establishment Act.
44 What is the limit of Overtime in Maharashtra ? How different it is from Karnataka or Haryana ?

Rate of overtime is defined under each State Shops & Establishment Act and Rules. Thus for Maharashtra it is defnied under Bombay Shops & Establishment Act as SIX hours a week, making it 24 hours a month. For Karnataka or Haryana it is 50 hours a quarter. One needs to refer respective State leave and overtime provisions under the said Shops & establishment Act.
45 The vendor is paying overtime at double the rate of basic wages, is this acceptable ?

Overtime has to be paid at double the rate of gross wages.
46 The vendor is paying overtime at double the rate of basic wages, is this acceptable ?

Overtime has to be paid at double the rate of gross wages.
47 The vendor does not pay any bonus to his employees as he does not get paid by us, is this acceptable ?

It is compulsory for the vendor to pay an annual bonus as per the act to employees deployed on client sites, whether this is part of your agreement or not. Bonus is derived from the profits of individual vendor after allocating surplus in books of accounts. If the bonus is not paid by the vendor, it is te responsibility of the said vendor to comply and not JLL or Principal Employer would be liable. However, there would be a possible IR issue and the vendor’s employee may complain to labour office. The penalty for not paying bonus is imprisonment of SIX months and the show cause notice maybe issued to the Principal Employer.
48 The vendor does not pay any bonus to his employees as he does not get paid by us, is this acceptable ?

It is compulsory for the vendor to pay an annual bonus as per the act to employees deployed on client sites, whether this is part of your agreement or not. Bonus is derived from the profits of individual vendor after allocating surplus in books of accounts. If the bonus is not paid by the vendor, it is te responsibility of the said vendor to comply and not JLL or Principal Employer would be liable. However, there would be a possible IR issue and the vendor’s employee may complain to labour office. The penalty for not paying bonus is imprisonment of SIX months and the show cause notice maybe issued to the Principal Employer.
49 Can the Bonus be paid on Monthly basis ?

Bonus is derived from computation of Gross profits after financial year end closure and thus needs to be paid after percentage of Bonus is declared. Minimum [percentage of Bonus should be 8.33% and maximum 20%. If the bonus is paid on monthly basis, the vendor needs to atleast pay 8.33% of bonus payable on earned salary. The said bonus paid on monthly basis to be shown as “Advance Bonus” and would attract ESI.
50 Can the Bonus be paid on Monthly basis ?

Bonus is derived from computation of Gross profits after financial year end closure and thus needs to be paid after percentage of Bonus is declared. Minimum [percentage of Bonus should be 8.33% and maximum 20%. If the bonus is paid on monthly basis, the vendor needs to atleast pay 8.33% of bonus payable on earned salary. The said bonus paid on monthly basis to be shown as “Advance Bonus” and would attract ESI.
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