Dear All, Can anybody help me to understand the "appropriate authority" under the Payment of Bonus Act? Please define for which industries the "Appropriate authority" under the Payment of Bonus Act is the Central government and for which industries the "Appropriate authority" is the State government.
Regards,
Manoj Prasad
[Phone Number Removed For Privacy Reasons]
From India, Mumbai
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12Regards,
Manoj Prasad
[Phone Number Removed For Privacy Reasons]
From India, Mumbai
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For payment of bonus act and gratuity act, the deputy labor commissioner is the appropriate authority. regards, Kamal
From India, Pune
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From India, Pune
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Dear Kamal, My query is, DLC/ALC of which authority state or central ? Regards Manoj prasad
From India, Mumbai
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From India, Mumbai
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Rule 3 of the Payment of Bonus Rules, 1975 provides clarification on the issue of the prescribed authority, which may be read as follows.
Rule 3. Authority for Granting Permission for Change of Accounting Year
The prescribed authority for the purposes of the proviso to paragraph (b) of sub-clause (iii) of clause (1) of section 2 shall be:
- (a) In the case of an establishment in relation to which the Central Government is the appropriate Government under the Act, the Chief Labour Commissioner (Central);
- (b) In any other case, the Labour Commissioner of the State in which the establishment is situated.
If you want to know the appropriate Government for a particular establishment under this Act, then we are required to go through the definition of appropriate Government under the Industrial Disputes Act, 1947. {Sec 2(a)}
Regards,
R.N. Khola
[Phone Number Removed For Privacy Reasons]
From India, Delhi
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Rule 3. Authority for Granting Permission for Change of Accounting Year
The prescribed authority for the purposes of the proviso to paragraph (b) of sub-clause (iii) of clause (1) of section 2 shall be:
- (a) In the case of an establishment in relation to which the Central Government is the appropriate Government under the Act, the Chief Labour Commissioner (Central);
- (b) In any other case, the Labour Commissioner of the State in which the establishment is situated.
If you want to know the appropriate Government for a particular establishment under this Act, then we are required to go through the definition of appropriate Government under the Industrial Disputes Act, 1947. {Sec 2(a)}
Regards,
R.N. Khola
[Phone Number Removed For Privacy Reasons]
From India, Delhi
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Dear Mr. Khola, Thanks for your input. Regarding the term "appropriate authority" as mentioned in section a of Rule 3: in the case of an establishment in relation to which the Central Government is the appropriate Government under the Act, the Chief Labour Commissioner (Central) is the designated authority. This definition applies only to organizations operating under the Central Government and public sector units, excluding private entities under the central government. Therefore, by default, the Labour Commissioner of the State is the appropriate authority.
Furthermore, the Labour Commissioner of the States delegates authority to the Deputy Labour Commissioner in every city (district) to supervise the statutory obligations of employers. This is why the Deputy Labour Commissioner is considered the appropriate authority.
Even in legal matters, the Deputy Labour Commissioner has full authority to report matters to the court directly, as he is regarded as the appropriate authority.
Regards,
Kamal
From India, Pune
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Furthermore, the Labour Commissioner of the States delegates authority to the Deputy Labour Commissioner in every city (district) to supervise the statutory obligations of employers. This is why the Deputy Labour Commissioner is considered the appropriate authority.
Even in legal matters, the Deputy Labour Commissioner has full authority to report matters to the court directly, as he is regarded as the appropriate authority.
Regards,
Kamal
From India, Pune
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Thanks, Khola sir. Actually, my establishment is covered under the State Shop & Commercial Establishment Act, but under CLRA, it is registered under the Central authority. Please clarify the appropriate authority for my establishment under the Bonus Act.
Regards,
Manoj Prasad
From India, Mumbai
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Regards,
Manoj Prasad
From India, Mumbai
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In my opinion, the appropriate government/authority for the enforcement of the Payment of Bonus Act, 1965, and the rules made thereunder would be the central government.
Regards,
R.N. Khola
[Phone Number Removed For Privacy Reasons]
From India, Delhi
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Regards,
R.N. Khola
[Phone Number Removed For Privacy Reasons]
From India, Delhi
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Dear Manoj,
Appropriate government to amend the provisions under the Principal Act is obviously the Central Government. For the state amendments, the state government can present it before both houses of the Central Government. For implementation, every Assistant/Deputy Commissioner of the state has been delegated the power to go through the Act.
Regards,
KIRAN KALE
From India, Kolhapur
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Appropriate government to amend the provisions under the Principal Act is obviously the Central Government. For the state amendments, the state government can present it before both houses of the Central Government. For implementation, every Assistant/Deputy Commissioner of the state has been delegated the power to go through the Act.
Regards,
KIRAN KALE
From India, Kolhapur
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Dear Mr. Prasoon,
Understanding the "Prescribed Authority" Under the Payment of Bonus Act
The proviso to Section 2(1)(iii)(b) of the Payment of Bonus Act empowers the "prescribed authority" to change the option exercised by the employer under Section 2(1)(iii)(b). The "prescribed authority" is stated in Rule 3 of the Payment of Bonus Rules 1975.
In the case of establishments for whom the "appropriate Government" is the Central Government, the Chief Labour Commissioner (Central) is the "prescribed authority." In cases where the "appropriate Government" is the State Government, the Labour Commissioner of the State is the "prescribed authority." In effect, the Parliament has entrusted the "prescribed authority" with the power under the proviso to Section 2(1)(iii)(b). However, the Parliament left it to the Rule-making power of the Central Government, vested in it under Section 38 of the Payment of Bonus Act, to notify the "prescribed authority." The Central Government, by virtue of the powers vested in it under Section 38 of the Payment of Bonus Act, had framed the Payment of Bonus Rules and had notified it in the Government of India Gazette.
The Labour Commissioners of the several States who are notified under the Payment of Bonus Rules to discharge the functions of the "prescribed authority" under the Payment of Bonus Act cannot further delegate the responsibility cast on them under the principle "a delegate cannot further delegate." The Commissioners of Labour do not have any inherent powers to delegate their functions under any law unless they are clothed with the power to do so. Moreover, when a Rule framed under an Act specifies some official to exercise a particular power, that power has to be exercised by that official alone and not by others, and that official cannot delegate that power to others. For such further delegation, there should be a provision in the Rules concerned.
Regards
From India, Madras
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Understanding the "Prescribed Authority" Under the Payment of Bonus Act
The proviso to Section 2(1)(iii)(b) of the Payment of Bonus Act empowers the "prescribed authority" to change the option exercised by the employer under Section 2(1)(iii)(b). The "prescribed authority" is stated in Rule 3 of the Payment of Bonus Rules 1975.
In the case of establishments for whom the "appropriate Government" is the Central Government, the Chief Labour Commissioner (Central) is the "prescribed authority." In cases where the "appropriate Government" is the State Government, the Labour Commissioner of the State is the "prescribed authority." In effect, the Parliament has entrusted the "prescribed authority" with the power under the proviso to Section 2(1)(iii)(b). However, the Parliament left it to the Rule-making power of the Central Government, vested in it under Section 38 of the Payment of Bonus Act, to notify the "prescribed authority." The Central Government, by virtue of the powers vested in it under Section 38 of the Payment of Bonus Act, had framed the Payment of Bonus Rules and had notified it in the Government of India Gazette.
The Labour Commissioners of the several States who are notified under the Payment of Bonus Rules to discharge the functions of the "prescribed authority" under the Payment of Bonus Act cannot further delegate the responsibility cast on them under the principle "a delegate cannot further delegate." The Commissioners of Labour do not have any inherent powers to delegate their functions under any law unless they are clothed with the power to do so. Moreover, when a Rule framed under an Act specifies some official to exercise a particular power, that power has to be exercised by that official alone and not by others, and that official cannot delegate that power to others. For such further delegation, there should be a provision in the Rules concerned.
Regards
From India, Madras
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Dear Sri Harikrishnan garu, Thank you for your update. You are also requested to guide us in the following areas.
Our establishment is registered under the A.P. Shops & Estb. Act and has many branches throughout the country. Recently, the Regional Labour Commissioner (Central) informed us that they are the Appropriate Authority under the Gratuity Act as we have branches throughout the country. If establishments have branches nationwide, then who is the appropriate Authority: RLC (Central) or DCL of the concerned State?
Regards,
Prasad
From India, Pune
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Our establishment is registered under the A.P. Shops & Estb. Act and has many branches throughout the country. Recently, the Regional Labour Commissioner (Central) informed us that they are the Appropriate Authority under the Gratuity Act as we have branches throughout the country. If establishments have branches nationwide, then who is the appropriate Authority: RLC (Central) or DCL of the concerned State?
Regards,
Prasad
From India, Pune
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If it is an IT & ITES organization, the appropriate authority is the JCL (Joint Commissioner of Labour). Other sectors, apart from IT & ITES, fall under the DCL (Deputy Commissioner of Labour).
Thanks & Regards,
Ashok Kumar
Associate for Labour Laws Compliance Management
[Phone Number Removed For Privacy Reasons]
From India, Hyderabad
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Thanks & Regards,
Ashok Kumar
Associate for Labour Laws Compliance Management
[Phone Number Removed For Privacy Reasons]
From India, Hyderabad
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