Pbskumar2006
Sr.manager-hr
R.N.Khola
Labour Laws & Ir
Rajanassociates
Legal Counsel
Jpratap
Dy Lab Comm, Pb (retd), Consultant And Qualified
Abbasiti
Assistant Engineer, Indian Telephone Industries,
Malikjs
Gm (hr)
Yagniah
Legal, Personnel Admn. And Hr
Gandi_sudhakar
Commercial & Operations
+4 Others

Thread Started by #gandi_sudhakar

Hi Friends, Pls let me know the rules governing the bonus act in connection with the employees who have worked for some time in the last financial year but were not associated with the company on the date of announcing the bonus. Is company liable to pay bonus to them & ex-Gratia to employees who have left the organisation?
PLS help me out with relevant sections of the act.
23rd October 2010 From India, Rajamahendri
If their salary is Rs. 10,000 or below for any part of the financial and a minimum attendance of 30 days for that period, then all employees including left out are eligible for bonus. Regarding other cases, it depend on your organisational policies. . . . . . . . . . . . Abbas.P.S
24th October 2010 From India, Bangalore
If the past employee has worked for 30 or more days in the establishment, he is entitled to bonus. jpratap
24th October 2010 From India, Chandigarh
dear
Bonus and exgratia both are seprate things and should not be clubbed.If an employees Basic was less than 10 k per
month than he is entitle for bonus and he has to be paid even left the organisation.If employees basic were more than 10 k than you decide whether you want to pay him exgrtia or not as, there is no law for exgratia payment
24th October 2010 From India, Delhi
Hi Mr.Mallik
what about if a employee who has left the organization, he was drawing a basic more than 10 k in his increment letter we have mentioned he will be entitled for exgratia, in this case do we have give him exgratia or not ?
Raj
24th October 2010 From India
Dear G.Sudhakar,

According to section 8 every employee shall be entitled to be paid by the employer in an accounting year, bonus in accordance with the provisions of this act, provided that he had worked in the establishment for not less than 30 working days in that year. In accordance with section 19 we are to pay bonus within the time limit prescribed which may be read as under:

19. Time-limit for payment of bonus. — All amounts payable to an employee by way of bonus under this Act shall be paid in cash by his employer —
(a) where there is a dispute regarding payment of bonus pending before any authority under section 22, within a month from the date on which the award becomes enforceable or the settlement comes into operation, in respect of such dispute;
(b) in any other case, within a period of eight months from the close of the accounting year:
Provided that the appropriate Government or such authority as the appropriate Government may specify in this behalf may, upon an application made to it by the employer and for sufficient reasons, by order, extend the said period of eight months to such further period or periods as it thinks fit; so, however, that the total period so extended shall not in any case exceed two years.
With Regards,
R.N.Khola



24th October 2010 From India, Delhi
Yes. Mr.G.Sudhakar we are binded to pay bonous to the employee who work with the organisation within the period for the bonus is declared.
But the employee should work with the orgnisation at least for 30 days in year for which the bonus is announce.
Regards,
Madhura
24th October 2010 From India
dear in this case if exgrtia is part of CTC than you should pay it.Generally no one writes in increment letter about exgratia.
24th October 2010 From India, Delhi
Suppose one Non-Supervisory employees are resigned and his basic salary is more then Rs 10,000/=, in that case also we need to pay him his Bonus/exgrasia ? Is there any low for them to pay ? Normally they are not cover under bonus act as they are received more then Rs.10,000/= as a basic.
24th October 2010 From India, Bhopal
Dear friends
Section 8 of the Payment of Bonus Act says that every employee shall be entitled to be paid by the employer in an accounting year, bonus in accordance with the provisions of this act, provided that he had worked in the establishment for not less than 30 working days in that year.
And the Act further says that the Bonus for the preceding accounting year( t April to 31st march) shall be paid before expiry of eight months from that Accounting year. It has become a custom that all establishments pay Bonus to their employees before Dasara / Deepavali.
To illustrate, an employees who worked for a period of 30 working days in an accounting year i.e., from 1st April 2009 to 31st march 2010, such employees is eligible for bonus for that accounting year i.e., payable before Dasara / Deepavali 2010, whether he is in service or left the organisation.
24th October 2010 From India, Hyderabad
Dear Sudhakar ji,



According to the Bonus act the cealing limit is Rs.10000/-. More thanthat the management descreation to pay the Bonus or not. In India most of the organisations pay the bonus to the exceeding limit also because to motivate the employees. Its a general phenomina. However, the following clarification may be clear your doubt.:



In accordance with the provisions of Section 2(13) of the Payment of Bonus Act, 1965 any person other than an apprentice employed on a salary or wage not exceeding Rs.10,000 (by notification dated 15th Nov. 2007) per mensem 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 is eligible for bonus. Further, in accordance with the provisions of Section 8 of the Payment of Bonus Act, 1965 every employee of an establishment covered under the Act is entitled to bonus from his employer in an accounting year provided he has worked in that establishment for not less than thirty working days in the year on a salary less than Rs.10,000 per month.

Hence the left and resigned employees who served more than 30 days are entitled to bonus.



Regards,



PBS KUMAR




25th October 2010 From India, Kakinada
Dear

In case the Bonus is not paid it will attract the penal provisions of the Act Sec 28

28. Penalty.- If any person--
(a) contravenes any of the provisions of this Act or any rule made thereunder; or
(b) to whom a direction is given or a requisition is made under this Act fails to comply with the direction or requisition, he shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.

29. Offences by companies.-

(1) If the person committing an offence under this Act is a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub- section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub- section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation.-- For the purposes of this section,--
(a) " company" means any body corporate and includes a firm or other association of individuals; and
(b) " director", in relation to a firm, means a partner in the firm.

30. Cognizance of offences.-
(1) No court shall take cognizance of any offence punishable under this Act, save on complaint made by or under the authority of the appropriate Government [ or an officer of that Government (not below the rank of a Regional Labour Commissioner in the case of an officer of the Central Government, and not below the rank of a Labour Commissioner in the case of an officer of the State Government) specially authorised in this behalf by that Government].
(2) No court inferior to that of a presidency magistrate or a magistrate of the first class shall try any offence punishable under this Act.

With Regards

E-mail : rajanassociates@eth,net,

Mobile : 9025792684.
25th October 2010 From India, Bangalore
Dear Friends, Please let me know, if an employee’s basic is more than Rs. 10 K, should we show the amount paid as Bonus or ex-gratia ? Regards,
25th October 2010 From India, Mumbai
dear pls read it is given in this discussion itself.everyone need quick reply without taking pain to see the complete discussion.
25th October 2010 From India, Delhi
If an ex-employee,s wages is less than 10000/- and worked more than a month is last financial year then he is eligible for Bonus under the act but not ex-gratia depend upon company policy Satish B
25th October 2010 From India, Bangalore
The salary basis for deciding eligibility for bonus and the amount of bonus payable as per act is Basic+ DA.
Bonus as per provisions of Bonus Act for the left employees can be paid after making payment to employees in service( Existing employees are priority).
JR Kumar
Faculty Director
FAPCCI Hyd.

25th October 2010 From India, Hyderabad
Dear Friends Incase employees left from the office, he may not collected the bonus, that cases how can we handle, what time limit for kept it with employer, after time limit what should we do? Please advice.
27th November 2018 From India, Bengaluru
Dear Member,
In general, we deposit this type of due amount which remains as unpaid accumulation with the employer with the state Labour Welfare Board after some specific period. We have to go through the applicable state Labour Welfare Fund Act to see when this amount is to be remitted with the Board. In case of Haryana where Punjab Labour Welfare Fund Act, 1965 is applicable we remit the unpaid amount with the board after two years. You have to go through the applicable Act for more details or you may approach the State Labour department for this purpose.
R N KHOLA
14th December 2018 From India, Delhi
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