Dear All,
As per Section 36 of the Payment of Bonus Act, 1965:
"Power of exemption.- If the appropriate Government, having regard to the financial position and other relevant circumstances of any establishment or class of establishments, is of the opinion that it will not be in the public interest to apply all or any of the provisions of this Act thereto, it may, by notification in the Official Gazette, exempt for such period as may be specified therein and subject to such conditions as it may think fit to impose, such establishment or class of establishments from all or any of the provisions of this Act."
Can a company with no allocable surplus seek exemption from the payment of minimum Bonus for the year 19-20 due to huge losses owing to the pandemic?
Has anyone applied for an exemption from the payment of Bonus? Will it be granted? Please also share the process involved.
Kindly share your experiences.
From India, Bengaluru
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3As per Section 36 of the Payment of Bonus Act, 1965:
"Power of exemption.- If the appropriate Government, having regard to the financial position and other relevant circumstances of any establishment or class of establishments, is of the opinion that it will not be in the public interest to apply all or any of the provisions of this Act thereto, it may, by notification in the Official Gazette, exempt for such period as may be specified therein and subject to such conditions as it may think fit to impose, such establishment or class of establishments from all or any of the provisions of this Act."
Can a company with no allocable surplus seek exemption from the payment of minimum Bonus for the year 19-20 due to huge losses owing to the pandemic?
Has anyone applied for an exemption from the payment of Bonus? Will it be granted? Please also share the process involved.
Kindly share your experiences.
From India, Bengaluru
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Payment of the minimum bonus is a statutory requirement. Having no allocable amount is not a sufficient reason to escape the liability of the bonus. In addition to 'set on,' there is also 'set off' to provide adequate funds from future years to meet the current liability. Trying to get an exemption as per Section 36 of the Payment of Bonus Act 1965 stands a better chance for the year 2020-21 rather than 2019-20, since the pandemic can be said to have adversely affected only in the second fortnight of March 2020.
From India, Mumbai
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From India, Mumbai
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