Government Requesting Balance Sheet Details: Is It Justified When Paying Maximum Bonus?

Can the government ask for balance sheet details like calculations of allocable/available surplus, etc., if the employer is paying a maximum bonus at 20% as stipulated under the Act.

Understanding Legal Obligations for Balance Sheet Submission

No action is suo moto (on its own accord). If an employee complains to the Controlling Authority or Labour Department, they can request information. Under section 27, the Inspector can visit and ask for such documents. Under section 23, if you are providing the audited balance sheet, it will be presumed accurate, and anyone disputing it must prove otherwise.

Under section 27(4), if asked, you are under a legal duty to submit the audited balance sheet. If you have any queries, please leave a comment.

For more information, visit Indian Labour Laws & Shram Suvidha Simplified.

You are required to maintain the records of allocable and available surplus, and the set-on set-off registers. Since that is required and can be inspected by the authorities at any time, they can also ask for the annual accounts to verify the accuracy of the same.