Bonus for Hospital Industry in Maharashtra - CiteHR
Labour Law & Hr Consultant
Sr. Hr Executive
H.o.d. Accounts & Finance
Srinath Sai Ram
Hr Manager

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Dear Members,
Is Bonus applicable to Hospital Industry in Maharashtra?
Thanks & Regards,
Sandip Sardesai

Dear Sandip,
Yes, Bonus is applicable to Hospital Industry as well, in fact it is applicable to overall every industry despite of nature of work. Only if it falls under the guidelines and rules mentioned in the act.

Dear Manoj,
I think that you've just missed sec.32 of the Payment of Bonus Act,1965 by oversight. If I remember correct there are 8 classes of employees employed in certain establishments listed under sec.32 which explicitly prohibits the application of the Act to such employees. Employees employed by hospitals established not for the purpose of profit are one among them. Sandip should note that this exemption does not apply to those corporate hospitals run for profit.

Dear Umakanthan.M,
Very thanks for conclusion. Means if Hospital running by charitable trust then & then only Bonus will be not applicable other wise bonus will be applicable for all including Hospital industry.
Thanks & Regards,
Sandip Sardesai

Dear Mr Sandip, You are wrongly interpreting reply of Mr Umakanthan Sir. Please refer to The Payment of Bonus Act, 1965-Nothing in this Act shall apply to (c) Institutions (including Hospitals, Chambers of Commerce & Social Welfare Institutions) established not for purposes of PROFIT.
This should not be construed as "Bonus Act is not applicable to" Means if Hospital running by charitable trust then & then only Bonus will be not applicable"
Who runs the Hospital is not the criteria, How the Hospital is run, whether free of cost or for Commercial basis for Commercial Considerations.Please peruse Christian medical College Case

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Dear Mr. Srinath,
Yes you & Mr. Umakanthan Sir are right. Thank you so much for sharing such type of knowledge with me. I was wrong. After your reply, I just go through the Act and then I understood that, As per "Payment of Bonus Act 1956" Clause No. 32 (V) (C) i.e. Act not to apply to certain classes of employees.- Nothing in
this Act shall apply to-- institutions (including hospitals, chambers of commerce and social welfare institutions) established not for purposes of profit.
Now I am again confusing that, If hospital is a Pvt Ltd then, How it will be come to know that, Hospital is running for the purpose of profit or not?
Thanks & Regards,
Sandip Sardesai
Manager - Accounts & Finance

If the Hospital is rendering "Free Service" it will not come under the purview of Bonus Act.If Hospital is rendering Service for Commercial Considerations,it comes under the purview of Bonus Act.
again, you have mistaken "Hospital is running for the purpose of profit or not? This is not the criteria for determining applicability of Bonus Act
Hospitals Established not for purposes of PROFIT are exempted from the purview of Bonus Act

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