Dear all,
I was receiving a bonus even when my salary was Rs. 25,000/- with a gross basic of Rs. 14,500/- about three years back. My employer informed me that since my salary is on the higher side, I will not be paid a bonus. For the last three years, I have not been receiving a bonus. Is there any law that I can refer to with my employer to claim my benefits?
Ajay
From India, Delhi
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I was receiving a bonus even when my salary was Rs. 25,000/- with a gross basic of Rs. 14,500/- about three years back. My employer informed me that since my salary is on the higher side, I will not be paid a bonus. For the last three years, I have not been receiving a bonus. Is there any law that I can refer to with my employer to claim my benefits?
Ajay
From India, Delhi
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Dear Ajay, There is no law to show to the employer for getting bonus from the employer. R.N.Khola
From India, Delhi
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422From India, Delhi
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As per the Bonus Act, the ceiling limit of the monthly salary for bonus coverage is Rs. 10,000, and for the calculation of bonus payment, it is Rs. 3,500. Beyond these limits, you have no statutory claim.
Regards,
Abbas.P.S
From India, Bangalore
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Regards,
Abbas.P.S
From India, Bangalore
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Payment of Bonus in excess of Statutory Limits amounts to Ex Gratia.
I have read in the Act that if Ex Gratia being paid for the past several years cannot be denied.
I am putting this page from the act itself for reference....
"8. Eligibility for bonus.- Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year.
COMMENTS
(i) Workers, who have the option to attend work at the factory premises, are entitled to a bonus. [M/s. Kale Khan Mohd. Hanif v. Jhansi Bidi Mazdoor Union 1980 Lab. I.C. 1973].
(ii) Season workers who have worked for not less than 30 working days are entitled to a bonus. U.K. Ginning & Pressing Factory v. P.O., 2nd Labour Court and Ors., (1991) 62F.L.R. 207 {Born.)].
(iii) Eligibility for a bonus depends on the employee having worked for at least 30 working days in the year.
(iv) There can be no condition against the statute. [Dewan's Modern Breweries Ltd. v. Industrial Tribunal & Ors., 1973 Lab.I.C. 129 (J&K)].
(v) The employees at the Head Office are entitled to a bonus at the same rate at which the workers of the factory have been given by virtue of settlement. [Hindustan Construction Co. Ltd. v. G.K. Potankar & Anr., A.I.R. 1976 S.C.907].
(vi) Employees working on a part-time basis are eligible for a bonus. [Arun Mills Ltd. v. Dr. Chandra Parshad C. Trivedi, (1976) 32F.L.R. 323].
(vii) A probationer is eligible for a bonus. [Bank of Madura Ltd. v. Bank of Madura Employees' Union. 1970 Lab. I.C. 1215].
(viii) Every employee is entitled to a bonus. [Mahabir Tiles Work v. Union of India, A.I.R. 1968 Ker. 143].
9. Disqualification for bonus.- Notwithstanding anything contained in this Act, an employee shall be disqualified from receiving a bonus under this Act if he is dismissed from service for-
(a) fraud; or
(b) riotous or violent behavior while on the premises of the establishment; or
(c) theft, misappropriation, or sabotage of any property of the establishment.
COMMENTS
Bonus can be forfeited under section 9 only concerning the accounting year in which the employee committed fraud, theft, etc. [Himalaya Drug Co. v. P.O., 2nd Addl. Labour Court & Ors., (1986) 52F.L.R. 704].
10. Payment of the minimum bonus.- Subject to the other provisions of this Act, every employer shall be bound to pay to every employee in respect of the accounting year commencing on any day in the year 1979 and in respect of every subsequent accounting year, a minimum bonus which shall be 8.33 percent of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year:
Provided that where an employee has not completed fifteen years of age at the beginning of the accounting year, the provisions of this section shall have an effect concerning such an employee as if for the words "one hundred rupees", the words "sixty rupees" were substituted.
COMMENTS
(i) Ex-gratia bonus is not a bonus within the meaning of section 10 of the Act. [R.P.C. Officers' Association v. R.F.C. and Ors., 1990 L.L.R 222 (Raj.)].
(ii) If employees have been getting ex-gratia bonus for the last many years, its payment cannot be stopped. [ibid.]
A claim for the minimum bonus lies with the Labour Court under section 33C(2) of the Industrial Disputes Act, 1947. [Kohinoor Tobacco Productions Ltd. v. P.0., 2nd Labour Court, 1986 Lab. I.C. 1055 (Bom.)].
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I have read in the Act that if Ex Gratia being paid for the past several years cannot be denied.
I am putting this page from the act itself for reference....
"8. Eligibility for bonus.- Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year.
COMMENTS
(i) Workers, who have the option to attend work at the factory premises, are entitled to a bonus. [M/s. Kale Khan Mohd. Hanif v. Jhansi Bidi Mazdoor Union 1980 Lab. I.C. 1973].
(ii) Season workers who have worked for not less than 30 working days are entitled to a bonus. U.K. Ginning & Pressing Factory v. P.O., 2nd Labour Court and Ors., (1991) 62F.L.R. 207 {Born.)].
(iii) Eligibility for a bonus depends on the employee having worked for at least 30 working days in the year.
(iv) There can be no condition against the statute. [Dewan's Modern Breweries Ltd. v. Industrial Tribunal & Ors., 1973 Lab.I.C. 129 (J&K)].
(v) The employees at the Head Office are entitled to a bonus at the same rate at which the workers of the factory have been given by virtue of settlement. [Hindustan Construction Co. Ltd. v. G.K. Potankar & Anr., A.I.R. 1976 S.C.907].
(vi) Employees working on a part-time basis are eligible for a bonus. [Arun Mills Ltd. v. Dr. Chandra Parshad C. Trivedi, (1976) 32F.L.R. 323].
(vii) A probationer is eligible for a bonus. [Bank of Madura Ltd. v. Bank of Madura Employees' Union. 1970 Lab. I.C. 1215].
(viii) Every employee is entitled to a bonus. [Mahabir Tiles Work v. Union of India, A.I.R. 1968 Ker. 143].
9. Disqualification for bonus.- Notwithstanding anything contained in this Act, an employee shall be disqualified from receiving a bonus under this Act if he is dismissed from service for-
(a) fraud; or
(b) riotous or violent behavior while on the premises of the establishment; or
(c) theft, misappropriation, or sabotage of any property of the establishment.
COMMENTS
Bonus can be forfeited under section 9 only concerning the accounting year in which the employee committed fraud, theft, etc. [Himalaya Drug Co. v. P.O., 2nd Addl. Labour Court & Ors., (1986) 52F.L.R. 704].
10. Payment of the minimum bonus.- Subject to the other provisions of this Act, every employer shall be bound to pay to every employee in respect of the accounting year commencing on any day in the year 1979 and in respect of every subsequent accounting year, a minimum bonus which shall be 8.33 percent of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year:
Provided that where an employee has not completed fifteen years of age at the beginning of the accounting year, the provisions of this section shall have an effect concerning such an employee as if for the words "one hundred rupees", the words "sixty rupees" were substituted.
COMMENTS
(i) Ex-gratia bonus is not a bonus within the meaning of section 10 of the Act. [R.P.C. Officers' Association v. R.F.C. and Ors., 1990 L.L.R 222 (Raj.)].
(ii) If employees have been getting ex-gratia bonus for the last many years, its payment cannot be stopped. [ibid.]
A claim for the minimum bonus lies with the Labour Court under section 33C(2) of the Industrial Disputes Act, 1947. [Kohinoor Tobacco Productions Ltd. v. P.0., 2nd Labour Court, 1986 Lab. I.C. 1055 (Bom.)].
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Is there is any return to be submitted for the bonus, if yes what is the form no. & where to be submitted?
From India, Calcutta
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From India, Calcutta
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We are required to send the annual return in form 'D' to the Inspector of the area to reach him within 30 days after the expiry of the time limit specified in section 19 of the Payment of Bonus Act, 1965.
Regards,
R.N.Khola
From India, Delhi
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Regards,
R.N.Khola
From India, Delhi
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I am Anbu Loganathan,
Some organizations declared a 20% bonus for their employees and paid it to all permanent employees on the payroll. However, they are only paying 8.33% to all temporary employees and former employees. Is this permissible under the Act?
Regards,
Anbu Loganathan
Manager - HR
From India, Madras
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Some organizations declared a 20% bonus for their employees and paid it to all permanent employees on the payroll. However, they are only paying 8.33% to all temporary employees and former employees. Is this permissible under the Act?
Regards,
Anbu Loganathan
Manager - HR
From India, Madras
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Dear,
You are pointing out discrimination. But there is substantial compliance by paying the Minimum Bonus. Probably there is an Agreement with Permanent Employees. Sec 31 A provides:
31A. [Special provision with respect to payment of bonus linked with production or productivity.- Notwithstanding anything contained in this Act--
(i) where an agreement or a settlement has been entered into by the employees with their employer before the commencement of the Payment of Bonus (Amendment) Act, 1976 (23 of 1976),
(ii) where the employees enter into any agreement or settlement with their employer after such commencement, for payment of an annual bonus linked with production or productivity in lieu of bonus based on profits payable under this Act, then, such employees shall be entitled to receive bonus due to them under such agreement or settlement, as the case may be:
Provided that any such agreement or settlement whereby the employees relinquish their right to receive the minimum bonus under section 10 shall be null and void insofar as it purports to deprive them of such right:
Provided further that such employees shall not be entitled to be paid such bonus in excess of twenty per cent. of the salary or wage earned by them during the relevant accounting year.
With kind regards,
V. Sounder Rajan
Advocates & Notaries,
Chennai – 600 001.
E-mail: rajanassociates@eth.net
Off: 044-42620864, 044-65874684
From India, Bangalore
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You are pointing out discrimination. But there is substantial compliance by paying the Minimum Bonus. Probably there is an Agreement with Permanent Employees. Sec 31 A provides:
31A. [Special provision with respect to payment of bonus linked with production or productivity.- Notwithstanding anything contained in this Act--
(i) where an agreement or a settlement has been entered into by the employees with their employer before the commencement of the Payment of Bonus (Amendment) Act, 1976 (23 of 1976),
(ii) where the employees enter into any agreement or settlement with their employer after such commencement, for payment of an annual bonus linked with production or productivity in lieu of bonus based on profits payable under this Act, then, such employees shall be entitled to receive bonus due to them under such agreement or settlement, as the case may be:
Provided that any such agreement or settlement whereby the employees relinquish their right to receive the minimum bonus under section 10 shall be null and void insofar as it purports to deprive them of such right:
Provided further that such employees shall not be entitled to be paid such bonus in excess of twenty per cent. of the salary or wage earned by them during the relevant accounting year.
With kind regards,
V. Sounder Rajan
Advocates & Notaries,
Chennai – 600 001.
E-mail: rajanassociates@eth.net
Off: 044-42620864, 044-65874684
From India, Bangalore
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Dear Sounder Rajan,
Mr. Anbu Loganathan's query is regarding the discrimination among the employees in Roll and those who have been left out, as well as temporary employees. You have mentioned the provision for the Productivity Bonus. Whether it is Profit Linked or Productivity Linked, the bonus payment should be uniform.
Abbas. P. S
From India, Bangalore
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Mr. Anbu Loganathan's query is regarding the discrimination among the employees in Roll and those who have been left out, as well as temporary employees. You have mentioned the provision for the Productivity Bonus. Whether it is Profit Linked or Productivity Linked, the bonus payment should be uniform.
Abbas. P. S
From India, Bangalore
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Dear Ajay,
Our dear friends have elaborated the point in a very fine way. Apart from this, I have to mention that The Payment of Bonus Act 1965 itself has given the definition of an "employee" at Sec.2(13) as follows: "employee" means any person (other than an apprentice) employed on a salary or wages not exceeding three thousand and five hundred rupees, and now during the year 2009-2010, ten thousand rupees, per month in any industry to do any skilled or unskilled manual, supervisory, managerial, administrative, technical, or clerical work for hire or reward, whether the terms of employment are express or implied.
Obviously, those who are receiving a salary or wages exceeding 10,000/- shall not be treated as an employee for the purpose of bonus.
Hope this clarifies your point in question.
Regards, KIRAN KALE
From India, Kolhapur
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Our dear friends have elaborated the point in a very fine way. Apart from this, I have to mention that The Payment of Bonus Act 1965 itself has given the definition of an "employee" at Sec.2(13) as follows: "employee" means any person (other than an apprentice) employed on a salary or wages not exceeding three thousand and five hundred rupees, and now during the year 2009-2010, ten thousand rupees, per month in any industry to do any skilled or unskilled manual, supervisory, managerial, administrative, technical, or clerical work for hire or reward, whether the terms of employment are express or implied.
Obviously, those who are receiving a salary or wages exceeding 10,000/- shall not be treated as an employee for the purpose of bonus.
Hope this clarifies your point in question.
Regards, KIRAN KALE
From India, Kolhapur
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