Whether Bonus Depends On Performance Or Its Compulsory - CiteHR
Umakanthan53
Labour Law & Hr Consultant
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My question to all is that whether, employee can stop bonus for some employees and pay to selected employee?
It is compulsory under The Payment of Bonus Act, 1965. Under Section 1 of the said act :-
1) This act applies to all factories
2) Every Other Establishment in which 20 people are employed on any day of the accounting year.
See for more Indian Labour Laws & Shram Suvidha Simplified

If the Payment of Bonus Act is applicable to the establishment and the people employed therein are " employees" as defined u/s 2(13) of the Act, the employer can not pay them statutory bonus based on his discretion in a "pick and choose" fashion unless such of those do not meet the eligibility criterion u/s 8 of the Act.
Sir,Please let us know how many employees we need for provident fund
Dear Satya,
Since you have mentioned that your employer is discriminating amongst the employees in disbursement of bonus, I presume that the Payment of Bonus Act,1965 is applicable to the establishment.
Regarding your queries that as to whether the employer can stop bonus for some employees and can pay to the selected employees, my reply to your query is that the employer cannot deprive of bonus to his employees, who meets the eligibility criteria I.e.if he had worked for 30 days in that year and is within the ceiling limit of salary under the Act.
BS Kalsi,
Member since August, 2011

Dear Satya,
In continuation to my preceding mail, I would further add that the employer can disqualify an employee who is dismissed from service for fraud, theft or riotous or violent behavior.
Where the bonus is not paid to the eligible employee, he can make an application before the competent authority of the State Govt.
BS Kalsi,
Member since August, 2011

Those employees who are coming under the bonus ceiling, it is compulsory for the employer to pay the minimum statutory bonus. But those employees whose salary/wages are more than ceiling limit it is upto the management whether to pay or not, if management wants to pay, it may pay them as exgratia payment as it wishes.
If an employee is not getting salary for the last 2 years during pendency of proceeding in the court. Can he claim bonus from the employers?
No, the employer cannot stop to pay bonus to some employees who are eligible as per the bonus act unless and until the employees are suspended and pending enquiry. If that is so, you can fight.
Dear Anonymous friend,
Sorry, your question seems a bit vague to me. The situation of non-payment of salary for a period of two years due to pendency of Court proceedings implies that it is a case of non-employment. In such a case, the right to claim bonus for the period of non-employment depends on the final award only. If the award is to the effect of reinstatement with back-wages, continuity of service and all other attendant benefits, the employee should be paid bonus also for the period of non-employment.


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