I am appending reasons for which Bonus may not be paid.
Question: Under what cases the employer can deduct the amount of bonus payable from employees account as per Payment of Bonus Act, 1965?
Answer: Where in any accounting year, an employee is found guilty of misconduct causing financial loss to the employer, then, it shall be lawful for the employer to deduct the amount of loss from the amount of bonus payable by him to the employee under this Act in respect of that accounting year only and the employee shall be entitled to receive the balance, if any.
Question: In what cases the employees will not be entitled to receive the bonus?
Answer: An employee in the following cases is not entitled to bonus: 1. An apprentice is not entitled to bonus [Wheel & RIM Co. vs. Government of T.N. (1971) 2 LLJ 299; 40 FJR 18]. 2. An employee who is dismissed from service on any ground of misconduct as mentioned in Section 9, is disqualified for any bonus and not merely for bonus of the accounting year in which he is dismissed (Pandian Roadways Corporation Ltd. vs. Presiding Officer [1996] 2 CLR 1175 (Mad) Disqualification of Bonus (Section 9) An employee who has been dismissed from service for :- (a) fraud; or (b) riotous or violent behaviour while on the premises of the establishment [V.G Textiles Private Ltd vs. Assistant Commissioner of Labour, 2010 (3) LLN405 (Mad.)]; or (c) theft, misappropriation or sabotage of any property of the establishment is not entitled for bonus. 3. Employees of certain establishments specified in section 32 are not covered by this Act. - See more at:
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