Is an employee on maternity leave eligible for bonus during those leave period?

Dear Seniors,

Can you please clarify the following doubts:

1. Is an employee on maternity leave eligible for a bonus during that leave period?
2. Can we deduct any outstanding amounts from the bonuses of resigned employees? Will this lead to any legal issues?

Thank you.

Dear Friends,

I have not received any reply to my query. Is my question vague or not clear? Please help!!!!

Giri

Dear Mr. Giri,

The point which has been raised by you is not clear. Which bonus are you talking about? I am responding on the following assumption:

(A) Medical Bonus under Maternity Benefit Act, 1961
(B) Bonus as per Payment of Bonus Act, 1965

Assumption A: If the employer is not providing any medical care to the women employee, then the employer is liable to pay a medical bonus of Rs. 1000, which is payable along with post-delivery maternity benefit. A woman to be eligible for maternity benefit should have worked for a minimum period of 80 days in the preceding 12 months, including weekly holidays.

Assumption B: Bonus under the Payment of Bonus Act is payable by the employer when an employee has worked for a minimum period of 30 days in the last accounting year. Authorized deductions are permissible under the act if the employee has caused any financial loss to the employer, such as damage of property, fraud, theft, etc.

Thank you Avinash,

My query was regarding Bonus paid under payment of Bonus act. Your answer clarifies my question 2 – Thanks a lot for the info.

With regard to my question 1. – This is again regarding the Bonus paid under payment of bonus act. If the employee is on her maternity leave should we pay Bonus for that period or that particular month.

Dear Mr. Giri,

Proportionate deduction for the period of maternity leave should be done from the statutory bonus payable. The logic behind this is that the employer already incurs a financial liability by paying a gross salary for 84 days, even though the employee has not actually worked during that period. Therefore, the employer should not be subjected to any additional financial burden for making payment for days not actually worked. Hence, proportionate deductions should be made from the statutory bonus payable.

Hello Avinash,

I have a small doubt regarding the medical bonus. When is the medical bonus paid to the employee – before going on maternity leave, during maternity leave, or after maternity leave? As I am going on maternity leave, when shall I receive the medical bonus?

Dear Member,

According to the MB Act of 1961 and the rules made thereunder, the employer is required to pay the amount of medical bonus along with the 2nd installment. This amount is to be paid within 48 hours of the production of proof that the woman has delivered a child.

With Regards,
R N KHOLA

Dear,

The maternity leave given under the Maternity Benefit Act, i.e., 12 weeks' leave, is just like annual leave or casual leave. So, the salary earned during that period will be taken into consideration while calculating the bonus under the Bonus Act. However, if someone is covered under ESI, then maternity benefits are paid by ESI, and the leave is also managed by ESI. In such cases, the candidate's bonus will not be calculated for that period.

Dear sir,

I have a few points regarding annual and half-yearly returns under the Factories Act in Uttar Pradesh. Please clarify the following:

1. Is it necessary to provide details of the contractor in the Annual Return of the Factory Act? Does this only involve giving details of personnel or both personnel and staff?

2. Do we need to fill out both annual and half-yearly returns?

3. Who is responsible for submitting the contractor's return?

Thank you.

1) If an employee is on maternity leave, the annual bonus/Deepawali bonus will be paid for the leave period.

2) Once full and final settlement is completed, no deductions will be made from employees.

VKS

The twelve weeks of leave provided by the Maternity Benefit Act are treated the same as yearly or casual leave. Hence, bonus payments under the bonus legislation will be based on the salary actually received within that time frame.