Good Evening, My self Rakesh and I am working in MNC, my factory is still under construction from last 4 yers, there is no Production in the factory, but we have 45 Employees now, so can we propose for a bonus for who done one year in service, or bonus will effective from company earning profits onwards. Is there any established time period we have for a bonus, please suggest on this, when we are proposing to management we need to go with the clarity. Thank you
From India
From India
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Dear Rakesh,
I would like you to go through the provisions of section 16 of the Payment of Bonus Act, 1965 in order to get a clear picture about the bonus liability of a newly started establishment.
In the case of a new establishment undergoing the phase of gestation, no bonus liability towards the employees employed during such period.
During the first 5 years the liability would arise only when production is commenced and profits are earned.
From India, Salem
6016I would like you to go through the provisions of section 16 of the Payment of Bonus Act, 1965 in order to get a clear picture about the bonus liability of a newly started establishment.
In the case of a new establishment undergoing the phase of gestation, no bonus liability towards the employees employed during such period.
During the first 5 years the liability would arise only when production is commenced and profits are earned.
From India, Salem
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