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Bonus act ...........

(Querist) 15 March 2008 This query is : Resolved 
Dear Sir/Mam,

I have certain queries regarding Bonus.

1. When Bonus Act gets applicable to any co.

2. What is the remedy if employer doesn't pay Bonus

3. Is bonus is paysble to temporaary as well as permanent employees.

4. How Bonus is calculated

Thanks & regards
Abhimanyu Soni



P.V.Poornima (Expert) 16 March 2008
The Payment of Bonus Act imposes statutory liability upon the employers of every establishment covered under the Act to pay bonus to their employees. It further provides for payment of minimum and maximum bonus and linking the payment of bonus with the production and productivity. The Act applies to every factory where 10 or more workers are working and every other establishment in which 20 or more persons are employed, on any day during an accounting year.

The Inspecting Officers/Inspectors enforce the provisions of the Act in their respective territorial jurisdictions assigned to them under the administrative control of the respective Labour Officers, Assistant Labour Commissioners and Deputy Labour Commissioners. The Act places an obligation on every employer covered under the Act to prepare and maintain certain registers, records and other documents as provided under the Rules.

The punishment provided for contravention of any provisions of the Act or any rule made there under is imprisonment for a term, which may extend for six months or with fine, which may extend to Rs. 1000/- or with both.
H. S. Thukral (Expert) 19 March 2008
Bonus Act is applicable to all establishments where 20 or more employees are employed in an accounting year. Ir is payable to all employees irespective of their status, on a upper ceiling of wage of Rs. 3500/- PM, at minimum rate of 8.33%. It is also payble to temporary employees on pro-rata basis with a minimum bonus of Rs. 100/-. The remedy on nonpayment of bonus is either to approach Labour Court under section 33C(2) of the ID Act or making a complaint to authrities appointed under Payment of Bonus Act.
Hiralal Das (Expert) 07 April 2009
Thanks all of you the ld. members and the author.
I think your valuable opinions will assist everybody to solve their problem/matter in question properly.
Sachin Bhatia (Expert) 17 October 2009
Agree with Mr.Thukral


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