Power firm told to pay bonus to 1,227 former workers
Clear instructions have been issued to the project management to ensure payment within one month, says District Labour Officer
The District Labour Officer, Chamba, has directed a hydropower company to pay pending bonus to 1,227 former workers engaged in the JSW Energy’s hydropower project.
According to orders, the total bonus amount payable to the former workers amounts to Rs 2,54,31,626. The Labour Department has ordered that the dues must be paid within one month or a strict action will be taken against the company management.
The department had earlier issued a notice to JSW Energy in September 2025 under the provisions of the Payment of Bonus Act, 1965, and the Contract Labour (Regulation and Abolition) Act, 1970, seeking payment of the statutory bonus. After company failed to comply with the orders, the department issued a fresh notice in November. Subsequently, the company’s divisional office was asked to submit relevant records and clarify its position. The grievances of the affected workers were monitored by the designated nodal officer.
After examining the records submitted by the company, the Labour Department concluded that labour laws and provisions of the Bonus Act had been violated. It was found that the company was liable to pay a bonus equivalent to 8.33 per cent of basic wages and dearness allowance for each year of employment to the former workers. Orders to this effect had already been issued.
District Labour Officer Anurag Sharma stated that the company management has been given one month to clear the dues and asked to submit a written guarantee. He said the department’s objective is to ensure that all 1,227 former workers receive their rightful benefits and that the administration is committed to safeguarding workers’ rights.
He said during the inquiry, it emerged that the sub-contracting agency engaged at the project site had failed to disburse the bonus amount to the workers.
It was violations of labour laws and the Payment of Bonus Act. The company has been told that failure to make the payment within the stipulated period would invite action under Section 21(4) of the Payment of Bonus Act.
The management had earlier given a written assurance to comply with the directions and sought a halt to recovery proceedings. The Labour Department, therefore, fixed the responsibility on the principal employer, JSW, holding that the main employer is liable in cases where the contractor defaults.
“Clear instructions had been issued to the project management to ensure payment within one month. The bonus amount would be adjusted against the Rs 9 crore guarantee already deposited by the company to secure the workers’ dues,” the District Labour Officer said.
