Payment of Bonus in excess of Statutory Limits amounts to Ex Gratia.
I have read in the Act that if Ex Gratia being paid for the past several years cannot be denied.
I am putting this page from the act itself for reference....
"8. Eligibility for bonus.- Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year.
COMMENTS
(i) Workers, who have the option to attend work at the factory premises, are entitled to a bonus. [M/s. Kale Khan Mohd. Hanif v. Jhansi Bidi Mazdoor Union 1980 Lab. I.C. 1973].
(ii) Season workers who have worked for not less than 30 working days are entitled to a bonus. U.K. Ginning & Pressing Factory v. P.O., 2nd Labour Court and Ors., (1991) 62F.L.R. 207 {Born.)].
(iii) Eligibility for a bonus depends on the employee having worked for at least 30 working days in the year.
(iv) There can be no condition against the statute. [Dewan's Modern Breweries Ltd. v. Industrial Tribunal & Ors., 1973 Lab.I.C. 129 (J&K)].
(v) The employees at the Head Office are entitled to a bonus at the same rate at which the workers of the factory have been given by virtue of settlement. [Hindustan Construction Co. Ltd. v. G.K. Potankar & Anr., A.I.R. 1976 S.C.907].
(vi) Employees working on a part-time basis are eligible for a bonus. [Arun Mills Ltd. v. Dr. Chandra Parshad C. Trivedi, (1976) 32F.L.R. 323].
(vii) A probationer is eligible for a bonus. [Bank of Madura Ltd. v. Bank of Madura Employees' Union. 1970 Lab. I.C. 1215].
(viii) Every employee is entitled to a bonus. [Mahabir Tiles Work v. Union of India, A.I.R. 1968 Ker. 143].
9. Disqualification for bonus.- Notwithstanding anything contained in this Act, an employee shall be disqualified from receiving a bonus under this Act if he is dismissed from service for-
(a) fraud; or
(b) riotous or violent behavior while on the premises of the establishment; or
(c) theft, misappropriation, or sabotage of any property of the establishment.
COMMENTS
Bonus can be forfeited under section 9 only concerning the accounting year in which the employee committed fraud, theft, etc. [Himalaya Drug Co. v. P.O., 2nd Addl. Labour Court & Ors., (1986) 52F.L.R. 704].
10. Payment of the minimum bonus.- Subject to the other provisions of this Act, every employer shall be bound to pay to every employee in respect of the accounting year commencing on any day in the year 1979 and in respect of every subsequent accounting year, a minimum bonus which shall be 8.33 percent of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year:
Provided that where an employee has not completed fifteen years of age at the beginning of the accounting year, the provisions of this section shall have an effect concerning such an employee as if for the words "one hundred rupees", the words "sixty rupees" were substituted.
COMMENTS
(i) Ex-gratia bonus is not a bonus within the meaning of section 10 of the Act. [R.P.C. Officers' Association v. R.F.C. and Ors., 1990 L.L.R 222 (Raj.)].
(ii) If employees have been getting ex-gratia bonus for the last many years, its payment cannot be stopped. [ibid.]
A claim for the minimum bonus lies with the Labour Court under section 33C(2) of the Industrial Disputes Act, 1947. [Kohinoor Tobacco Productions Ltd. v. P.0., 2nd Labour Court, 1986 Lab. I.C. 1055 (Bom.)].