Good Evening, my name is Rakesh, and I work in an MNC. Our factory has been under construction for the past 4 years, and there has been no production yet. However, we currently have 45 employees. I would like to inquire about proposing a bonus for employees who have completed one year of service. Should the bonus be effective only once the company starts earning profits? Is there a specific time period typically established for awarding bonuses? Your suggestions on this matter would be greatly appreciated as we aim to present a clear proposal to the management. Thank you.
From India
Acknowledge(0)
Amend(0)
From India
Acknowledge(0)Amend(0)
I would like you to go through the provisions of Section 16 of the Payment of Bonus Act, 1965, to get a clear picture of the bonus liability of a newly started establishment.
In the case of a new establishment undergoing the phase of gestation, there is no bonus liability towards the employees employed during such a period. During the first 5 years, the liability would arise only when production is commenced and profits are earned.
From India, Salem
Acknowledge(0)Amend(0)
6108In the case of a new establishment undergoing the phase of gestation, there is no bonus liability towards the employees employed during such a period. During the first 5 years, the liability would arise only when production is commenced and profits are earned.
From India, Salem
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Amendment to Payment of Bonus Act 2015.jpg
Bigger bonuses for more as Lok Sabha amends Payment of Bonus Act - The Economic Times.pdf
THE PAYMENT OF BONUS ACT.doc