An employee had three manufacturing units at different places, each registered separately as a factory under the Factories Act, 1948, and each employing 50 employees. The competent authority under the Apprentice Act, 1961, clubbed the three units and determined the total strength of apprentices to be inducted into the units. Is the clubbing valid?
From India, Mumbai
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A bus conductor died of a heart attack after working hours while he was sleeping in the bus, which was standing at a bus depot. The nominee of the deceased conductor claimed compensation under the Workmen's Compensation Act, 1923.

Is the employer liable to pay the compensation to the nominee?

From India, Mumbai
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On the basis of an agreement signed between the trade union and the management, it was agreed to pay a bonus of 30% of wages to all eligible employees under the Payment of Bonus Act, 1965.

Is the agreement valid?

From India, Mumbai
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Under the Payment of Gratuity Act, 1972, an employer can withhold the payment of gratuity to an employee when the latter fails to vacate the accommodation allotted to him by the employer.

Please comment on this statement giving legal reasons.

From India, Mumbai
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An employer defaults in making payment of P.F contributions to the Provident fund. The period of default is 5 months. Is the employer liable to pay damages and if so at what rate of damages?
From India, Mumbai
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thanx for such a gud question actually the employer is liable to pay damages and the rate is set by the competent authority.
From India, Delhi
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Yes, the payment ofr Gratuity may be witheld for non vacation of employer’s accomodation.But it can’t be denied.Even any outstanding dues may be adjusted from it regards
From India, Delhi
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The rate of damages for delayed payment of 5 months is 15%. the slab is as follows:- Period of delay %age of damages upto 60 days 5% 61- 120 10% 121-180 15% 181- on wards 25% regards
From India, Delhi
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I don't think the clubbing is correct. In the said act, the same is not provided, but depending upon certain logic, they may interpret the theory of clubbing together if all three units are interrelated in the manufacturing process.

Regards

From India, Delhi
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Minimum waiting perod is 5 years.Beyond 5 years gratuty is payable and every completed service of 6 months is treated as a year. For example a service of 5 years and 6 months is treated as 6 years

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Yes, the agreement is valid. The maximum 20% bonus is a statutory requirement, but more may be paid on mutual understanding. IT rebate will be limited to 20% amount only. In the agreement, the phrase "under the Payment of Bonus Act, 1965" may be avoided.

Regards

From India, Delhi
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I am afraid this answer is incorrect. In the fourth year, the employee could not have completed 240 days of continuous service having worked only for 6 months. Therefore, the employee under these circumstances will not be eligible for payment of Gratuity.

Vasant Nair


From India, Mumbai
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Q1: Clubbing of Manufacturing Units

An employee had three manufacturing units at different places, each registered separately as a factory under the Factories Act, 1948, and each employing 50 employees. The competent authority under the Apprentice Act, 1961, clubbed the three units and determined the total strength of apprentices to be inducted into the units. Is the clubbing valid?

Ans: According to the law, nothing is specified, but logically, the authority can decide on the issue, and we have to obey it.

Q2: Withholding Gratuity Under the Payment of Gratuity Act, 1972

Under the Payment of Gratuity Act, 1972, an employer can withhold the payment of gratuity of an employee when the latter fails to vacate the accommodation allotted to him by the employer.

Ans: Under the act, we cannot withhold the amount; however, the charges can be adjusted while doing full and final settlement. Gratuity is a part of the full and final settlement. If the employee does not vacate the premises, you can issue him a show-cause notice by marking CC to the Labour Office to avoid any future legal hurdles.

Q3: Compensation Under the Workmen's Compensation Act, 1923

A bus conductor died of a heart attack after working hours while he was sleeping in the bus, which was standing at a bus depot. The nominee of the deceased conductor claimed compensation under the Workmen's Compensation Act, 1923. Is the employer liable to pay the compensation to the nominee?

Ans: No! But you should be sure and must prove that he was not on duty at the time of death. The death should not be a result of any accident, and it should be natural. A medical certificate is also required.

Q4: Agreement on Bonus Payment Under the Payment of Bonus Act, 1965

On the basis of an agreement signed between the trade union and the management, it was agreed to pay a bonus of 30% of wages to all eligible employees under the Payment of Bonus Act, 1965. Is the agreement valid?

Yes, the minimum set bonus is 20%! There is no maximum limit defined, but once you have given the privilege, you cannot withdraw it under the act.

Regards,
Manish Gupta

From India, Mumbai
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Dear Member, Which of the section/rule requires 240 days for bonus ? With Regards, R.N.Khola
From India, Delhi
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YES, the nominee is eligible to receive compensation whether the person is on duty or off duty. He/she is always under duty, and may just be experiencing pain or needing rest. Therefore, the nominee can claim compensation.
From India, Gurgaon
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YES the nominee is liable to get the compensation weather da person is on duty or off duty he/she nominee can claim for the compensation
From India, Gurgaon
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Dear Member,

Please inform Mr. Kundan Suman that he is required to work for 240 days. Section 8 stipulates that a minimum of 30 days of work in an accounting year is necessary to qualify for receiving a bonus.

Regards,
R N Khola


From India, Delhi
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Hai Yes. Employer can apply to the Chief Inspector, two or more factories shall be treated as single factory. MANOKAVIN
From India, Coimbatore
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Clubing is not vaild. Clubing is not valid as the place of factory is differente and all the factories having their seprate identity in the office of factory officer.
From India, Mumbai
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Dear Galatage No not at all, an employee should complete 5 or more years to entitle for gratuity. KIRAN KALE, KOLHAPUR.
From India, Kolhapur
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Dear Galatage, on completion of 30 days service for the unit which is covered under Bonus Act, an employee shall get bonus for that Accounting year. KIRAN KALE , KOLHAPUR.
From India, Kolhapur
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I agree with laldee, only in the case of disciplinary actions employer could cease the payment of gratuity. KIRAN KALE,
From India, Kolhapur
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Dear Shaziaaa,

The contents of the agreement have superseded the provision of the Bonus Act, which states a maximum limit of a 20% bonus. However, the 30% can be bifurcated as 20% bonus + 10% ex-gratia payment when agreed upon by the employer through a settlement.

KIRAN KALE.

From India, Kolhapur
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NO. AS PER THE GRATUITY ACT, EMPLOYEE SHOULD COMPLETE FIVE YEAR SERVICE CONTINIOUSLY. Prakash Salunkhe
From India, Pune
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An employee is a member of the Employee Family Pension Fund Scheme. He superannuates after completing 33 years of continuous service and having a pensionable salary of Rs. 12,000 per month. Calculate the monthly pension he is entitled to receive under the scheme.

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From India, Mumbai
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"It is not obligatory to appoint a presenting officer in the part of an employer in a domestic enquiry" Comment on this statement giving legal reasons.
From India, Mumbai
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Dear Mr. Khola,

This applies only after an employee completes the qualifying criteria of 5 years.

Regards, Vasant Nair


From India, Mumbai
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for payment of bonus, a employee / worker need to work for atleast 30 days in the financial year.
From India, Madras
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Dear Sir, Regarding the bonus of 30 %, it can be given as the maximum of 20% as per bonus act and the balance as ex gratia payment. regards, T.S.SRINIVASAN
From India, Pondicherry
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Dear Sir, Organization can pay bonus the maximum allowable of 20% and the balance 10% as ex Gratia payment. Regards, T.S.SRINIVASAN
From India, Pondicherry
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I fully agree with the remarks i.e. employer can not withhold the gratuity amount of an employee even if he is not vacating the company’s accommodation.
From India, Koraput
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