PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Labour Law & Hr Consultant
General Manager - Hr & Admin
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KK!HRDuring the first five years following the accounting year in which the
employer sells the goods produced or manufactured by him or renders services, the establishment is not required to pay statutory bonus, subject to the condition that bonus shall be payable in respect of the accounting year in which the employer derives profit from such establishment. (Section 16 (1A) of the Payment of Bonus Act 1965
Being an R&D Establishment, it has to be seen whether the Payment of Bonus Act would apply at all.
From India, Mumbai
umakanthan53This is in continuation of what Mr.KK(!)HR has stated on the question.
Section 32 of the Payment of Bonus Act,1965 exhaustively enumerates the list of employees employed by certain types of establishments to whom the provisions of the Act are not applicable.
R&D employees are not included in the exempted class of employees. Therefore, the 68 employees of the R&D Wing of the newly start-up establishment are also entitled to statutory bonus subject to the provisions of sections 12 and 16 of the Act.
From India, Salem