dear all
i was getting bonus even when my salary was rs. 25000/- grs basic rs. 14500/- about three yrs back. my employer told me that as my salary is on higer side so i will not b paid bonus . since last three years i m not getting bnus. is there any law which i can show to my employer and can get my benifits.
ajay
From India, Delhi
i was getting bonus even when my salary was rs. 25000/- grs basic rs. 14500/- about three yrs back. my employer told me that as my salary is on higer side so i will not b paid bonus . since last three years i m not getting bnus. is there any law which i can show to my employer and can get my benifits.
ajay
From India, Delhi
363
Payment of Bonus in excess of Statutory Limits amount to Exgratia.
I have read in the Act that if Ex Gratia being paid for past several years can not be denied."
i am putting this page from the act itself for refernce........
"" 8. Eligibility for bonus.-Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year.
COMMENTS
(i) Workers, who have option to attend to work at the factory premises, are entitled to bonus. [M/s. Kale Khan Mohd. Hanif v. Jhansi Bidi Mazdoor Union 1980 Lab. I.C. 1973].
(ii) Season workers who have worked for not less than 30 working days, are entitled to bonus. U.K. Ginning & Pressing Factory v. P.O., 2nd Labour Court and Ors., (1991) 62F.L.R. 207 {Born.)].
(iii) Eligibility for bonus depends upon the employee having worked for at least 30 working days in the year.
(iv) There can be no condition against the statute. [Dewan's Modern Breweries Ltd. v. Industrial Tribunal & Ors., 1973 Lab.I.C. 129 (J&K)].
(v) The employees at the Head Office are entitled to bonus at the same rate at which the workers of factory have been given by virtue of settlement. [Hindustan Construction Co. Ltd. v. G.K. Potankar & Anr., A.I.R. 1976 S.C.907].
(vi) Employees working on part-time basis are eligible for bonus. [Arun Mills Ltd. v. Dr. Chandra Parshad C. Trivedi, (1976) 32F.L.R. 323].
(vii) A probationer is eligible for bonus. [Bank of Madura Ltd. v. Bank of Madura Employees' Union. 1970 Lab. I.C. 1215].
(viii) Every employee is entitled to bonus. [Mahabir Tiles Work v. Union of India, A.I.R. 1968 Ker. 143].
9. Disqualification for bonus.- Notwithstanding anything contained in this Act, an employee shall be disqualified from receiving bonus under this Act, if he is dismissed from service for-
(a) fraud; or
(b) riotous or violent behavior while on the premises of the establishment; or
(c) theft, misappropriation or sabotage of any property of the establishment.
COMMENTS
Bonus can be forfeited under section 9 only with reference to accounting year in which the employee committed fraud, theft, etc. [Himalaya Drug Co. v. P.O., 2nd Addl. Labour Court & Ors., (1986) 52F.L.R. 704].
1[10. Payment of minimum bonus.-Subject to the other provisions of this Act, every employer shall be bound to pay to every employee in respect of the accounting year commencing on any day in the year 1979 and in respect of every subsequent accounting year, a minimum bonus which shall be 8.33 percent of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year:
Provided that where an employee has not completed fifteen years of age at the beginning of the accounting year, the provisions of this section shall have effect in relation to such employee as if for the words "one hundred rupees", the words "sixty rupees" were substituted.
COMMENTS
(i) Ex-gratia bonus is not a bonus within the meaning of section 10 of the Act. [R.P.C. Officers' Association v. R.F.C. and Ors., 1990 L.L.R 222 (Raj.)].
(ii) If employees have been getting ex-gratia bonus for last many a years, its payment cannot be stopped. [ibid.]
Claim for the minimum bonus lies to the Labour Court under section 33C(2) of the Industrial Disputes Act, 1947. [Kohinoor Tobacco Productions Ltd. v. P.0., 2nd Labour Court, 1986 Lab. I.C. 1055 (Bom.)]. ""
I have read in the Act that if Ex Gratia being paid for past several years can not be denied."
i am putting this page from the act itself for refernce........
"" 8. Eligibility for bonus.-Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year.
COMMENTS
(i) Workers, who have option to attend to work at the factory premises, are entitled to bonus. [M/s. Kale Khan Mohd. Hanif v. Jhansi Bidi Mazdoor Union 1980 Lab. I.C. 1973].
(ii) Season workers who have worked for not less than 30 working days, are entitled to bonus. U.K. Ginning & Pressing Factory v. P.O., 2nd Labour Court and Ors., (1991) 62F.L.R. 207 {Born.)].
(iii) Eligibility for bonus depends upon the employee having worked for at least 30 working days in the year.
(iv) There can be no condition against the statute. [Dewan's Modern Breweries Ltd. v. Industrial Tribunal & Ors., 1973 Lab.I.C. 129 (J&K)].
(v) The employees at the Head Office are entitled to bonus at the same rate at which the workers of factory have been given by virtue of settlement. [Hindustan Construction Co. Ltd. v. G.K. Potankar & Anr., A.I.R. 1976 S.C.907].
(vi) Employees working on part-time basis are eligible for bonus. [Arun Mills Ltd. v. Dr. Chandra Parshad C. Trivedi, (1976) 32F.L.R. 323].
(vii) A probationer is eligible for bonus. [Bank of Madura Ltd. v. Bank of Madura Employees' Union. 1970 Lab. I.C. 1215].
(viii) Every employee is entitled to bonus. [Mahabir Tiles Work v. Union of India, A.I.R. 1968 Ker. 143].
9. Disqualification for bonus.- Notwithstanding anything contained in this Act, an employee shall be disqualified from receiving bonus under this Act, if he is dismissed from service for-
(a) fraud; or
(b) riotous or violent behavior while on the premises of the establishment; or
(c) theft, misappropriation or sabotage of any property of the establishment.
COMMENTS
Bonus can be forfeited under section 9 only with reference to accounting year in which the employee committed fraud, theft, etc. [Himalaya Drug Co. v. P.O., 2nd Addl. Labour Court & Ors., (1986) 52F.L.R. 704].
1[10. Payment of minimum bonus.-Subject to the other provisions of this Act, every employer shall be bound to pay to every employee in respect of the accounting year commencing on any day in the year 1979 and in respect of every subsequent accounting year, a minimum bonus which shall be 8.33 percent of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year:
Provided that where an employee has not completed fifteen years of age at the beginning of the accounting year, the provisions of this section shall have effect in relation to such employee as if for the words "one hundred rupees", the words "sixty rupees" were substituted.
COMMENTS
(i) Ex-gratia bonus is not a bonus within the meaning of section 10 of the Act. [R.P.C. Officers' Association v. R.F.C. and Ors., 1990 L.L.R 222 (Raj.)].
(ii) If employees have been getting ex-gratia bonus for last many a years, its payment cannot be stopped. [ibid.]
Claim for the minimum bonus lies to the Labour Court under section 33C(2) of the Industrial Disputes Act, 1947. [Kohinoor Tobacco Productions Ltd. v. P.0., 2nd Labour Court, 1986 Lab. I.C. 1055 (Bom.)]. ""
Is there is any return to be submitted for the bonus, if yes what is the form no. & where to be submitted?
From India, Calcutta
From India, Calcutta
I am Anbu Loganathan,
Some organisations declared 20% Bonus to their employees and paid to all permanent employees on roll. But they are paying 8.33% to all temporary employees and left employees. Is it permissible under Act.
Regards,
Anbu Loganathan
Manager - HR
From India, Madras
Some organisations declared 20% Bonus to their employees and paid to all permanent employees on roll. But they are paying 8.33% to all temporary employees and left employees. Is it permissible under Act.
Regards,
Anbu Loganathan
Manager - HR
From India, Madras
Dear
You are pointing out discrimination. But there is substantial compliance by paying the Minimum Bonus . Probably there is an Agreement with Permanent Employees. Sec 31 A provides
31A. 2[ Special provision with respect to payment of bonus linked with production or productivity.- Notwithstanding anything contained in this Act,--
(i) where an agreement or a settlement has been entered into by the employees with their employer before the commencement of the Payment of Bonus (Amendment) Act, 1976 (23 of 1976 ),
(ii) where the employees enter into any agreement or settlement with their employer after such commencement, for payment of an annual bonus linked with production or productivity in lieu of bonus based on profits payable under this Act, then, such employees shall be entitled to receive bonus due to them under such agreement or settlement, as the case may be:
Provided that any such agreement or settlement whereby the employees relinquish their right to receive the minimum bonus under section 10 shall be null and void in so far as it purports to deprive them of such right:
Provided further that such employees shall not be entitled to be paid such bonus in excess of twenty per cent. of the salary or wage earned by them during the relevant accounting year.
With kind regards,
V.Sounder Rajan
Advocates & Notaries,
Chennai – 600 001.
E-mail :
Off : 044-42620864, 044-65874684
,
From India, Bangalore
You are pointing out discrimination. But there is substantial compliance by paying the Minimum Bonus . Probably there is an Agreement with Permanent Employees. Sec 31 A provides
31A. 2[ Special provision with respect to payment of bonus linked with production or productivity.- Notwithstanding anything contained in this Act,--
(i) where an agreement or a settlement has been entered into by the employees with their employer before the commencement of the Payment of Bonus (Amendment) Act, 1976 (23 of 1976 ),
(ii) where the employees enter into any agreement or settlement with their employer after such commencement, for payment of an annual bonus linked with production or productivity in lieu of bonus based on profits payable under this Act, then, such employees shall be entitled to receive bonus due to them under such agreement or settlement, as the case may be:
Provided that any such agreement or settlement whereby the employees relinquish their right to receive the minimum bonus under section 10 shall be null and void in so far as it purports to deprive them of such right:
Provided further that such employees shall not be entitled to be paid such bonus in excess of twenty per cent. of the salary or wage earned by them during the relevant accounting year.
With kind regards,
V.Sounder Rajan
Advocates & Notaries,
Chennai – 600 001.
E-mail :
Off : 044-42620864, 044-65874684
,
From India, Bangalore
Dear Sounder Rajan,
Mr.Anbu Loganathan's query is regarding the discrimination among the employees in Roll and left out as well as temporary employyees. But you have cited the provision for Productivity Bonus. Whether it is Profit Linked or Productivity Linked, the bonus payment should be uniform.
Abbas.P.S
From India, Bangalore
Mr.Anbu Loganathan's query is regarding the discrimination among the employees in Roll and left out as well as temporary employyees. But you have cited the provision for Productivity Bonus. Whether it is Profit Linked or Productivity Linked, the bonus payment should be uniform.
Abbas.P.S
From India, Bangalore
Dear Ajay,
Our dear friends have elaborate the point in very fine way, apart from this I have to mention that The Payment of Bonus Act 1965 itself has given definition of an "EMPLOYEE" at Sec.2(13) as under :
"employee" means any person(other than an apprentice) employed on salary or wages not exceeding (three thousand and five hundred repees and now during the year 2009-2010 Ten thousand rupees) p.m.in any industry to do any skilled or unskilled manual,supervisory, managerial, administrative, technical or clerical work for hire or reward, whether the terms of employment be express or implied.
Obviously, those who are getting salary or wages more than 10000/-shall not be treated as an employee for the effect of bonus.
Hope, This may clear ur point in question,
Regards,
KIRAN KALE
From India, Kolhapur
Our dear friends have elaborate the point in very fine way, apart from this I have to mention that The Payment of Bonus Act 1965 itself has given definition of an "EMPLOYEE" at Sec.2(13) as under :
"employee" means any person(other than an apprentice) employed on salary or wages not exceeding (three thousand and five hundred repees and now during the year 2009-2010 Ten thousand rupees) p.m.in any industry to do any skilled or unskilled manual,supervisory, managerial, administrative, technical or clerical work for hire or reward, whether the terms of employment be express or implied.
Obviously, those who are getting salary or wages more than 10000/-shall not be treated as an employee for the effect of bonus.
Hope, This may clear ur point in question,
Regards,
KIRAN KALE
From India, Kolhapur
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