Is an Employee on ESIC Leave for a Year Eligible for a Bonus? Let's Discuss!

Eligibility for Bonus During ESIC Leave

One employee has been on ESIC leave for one year and has been receiving benefits from ESIC. Is he eligible for a bonus for the same period or not?

Regards,
Shyam Sundar

Eligibility for Bonus Under the Payment of Bonus Act, 1965

As per Section 8 of the Payment of Bonus Act, 1965, the eligibility criterion for a bonus under the Act is that an employee should have worked for a minimum of 30 working days in the establishment during the accounting year concerned. An employee taking benefit from the ESIC for a continuous period of absence by virtue of the insurance coverage cannot be treated as having worked those days.

Therefore, such an employee is not eligible for a bonus for that accounting year.