If there is more than one branch of a company and some branches are making a profit, while the others are making a loss. What will happen in that case, will the company making a loss give a bonus?
From India, Ahmedabad
Acknowledge(0)
Amend(0)
From India, Ahmedabad
Acknowledge(0)Amend(0)
As per Section 3 of the Payment of Bonus Act, 1965, an establishment under the Act includes departments, undertakings, and branches. If some branches of the same company are making profits, it is considered that the company as a whole has lost its infancy status unless a particular branch has its own balance sheet. Therefore, even though other branches are making losses, you must treat the company as an organic whole and pay a bonus to the employees of all branches based on the quantum of allocable surplus in the accounting year.
From India, Salem
Acknowledge(1)
Amend(0)
6108From India, Salem
Acknowledge(1)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
Bonus act amendment gazette copy.pdf