ESIC leave - can we reduce bonus of that employee?

vishalmgrhr
Dear Senior, If employee is on ESIC on leave of 45 days during financial year & we didn’t give him salary for this period then in this case can we reduce bonus of that employee of 45 days under Bonus provision under the act.
Please review & advice
korgaonkar k a
Dear Vishal ji,
Bonus is calculated on earned salary or wage as defined in the Act, i.e. basic + DA. The amount paid by ESI to IP during his ESI leave is not salary or wage as defined in the Act and therefore, no bonus is calculated on the amount paid by ESI.
vishalmgrhr
thanks for above mention same ..

Dear Sir,

This has reference to Bonus act ceiling limit ( 3500 to 10000 ), please advice -if company is providing Bonus on to all employee whose basic salary (Basic +VDA) more than 10000 as per previous practice from initially .

But now, management wants to change the previous pattern & practice because it is not as per Bonus act it is non-compliance .

Please on below points:-

1. Can be Disqualify employee (Staff & employee Union member, Manager& Executive) for Bonus whose getting wages (Basic+VDA) more than 10000.

2. Can we prepare Form C – Under Bonus provision after avoiding >10000 wages(basic+vda) employees.

3. Employee union member can be create issue because they were getting bonus from starting while they all were getting wages (basic+vda) more than ceiling limit(>10000).

If union member creates issue for the bonus then in this condition –what we should do, how we should advice them to avoid non-compliance of Bonus act.

Kindly review & advice for same.
Alphonse
Dear friend
As per the Act you have to pay the Bonus for the ceiling amount to the covered employees. If you are giving any amount to the employee you have to consider all the employees. So if you are paying the bonus to the covered employees under the bonus act you should pay an ex-gratia amount to non covered employees. All the companies are following this in practice
Regards
Alphonse.
vishalmgrhr
Dear Sir,
Thanks for your reply .
Apart from Bonus we also pay ex-Gratia at the time of Bonus distribution to all employees as per previous practice .
korgaonkar k a
Dear Alphonse ji,
Can you please let us know in which Act it is written that ex-gratia has to be given to those who are not falling under POB Act?
varghesemathew
Exgratia is not statutory.But it is only justice that all the employee contributed for the performance of the company should get a reward for it.
dineshkumarji.dks
Sir,
We are paying bonus to those employees whose basic salary is more than 10,000. Now is it valid to mention this amount in balance sheet or Bonus FORM C
Regards
Dinesh Kumar
D.GURUMURTHY
Bonus payment is on the wages earned.
In ESI leave he is not getting wages, hence no bonus.
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