Payment of Bonus Act,1965

Act No : 21

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Section : Establishments to include departments, undertakings and branches.

3. Establishments to include departments, undertakings and branches.- Where an establishment consists of different departments or undertakings or has branches, whether situated in the same place or in diffcrent places, all such departments or undertakings or branches shall be treated as parts of the same establishment for the purpose of computation of bonus under this Act: Provided that where for any accounting year a separate balance- sheet and profit and loss account are prepared and maintained in respect of any such department or undertaking or branch, then, such department or undertaking or branch shall be treated as a separate establishment for the purpose of computation of bonus under this Act for that year, unless such department or undertaking or branch was, immediately before the commencement of that accounting year treated as part of the establishment for the purpose of computation of bonus.

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Prakash Yedhula wrote on 19 April 2009

Branches of an establishment are to be treated as part of the same establishment for the purpose of computation of bonus. [Workmen, Somaiya Organics (India) Ltd. v. Somaiya Organics (India) Ltd. & Ors., 1981 Lab. I.C. 363 (All.)]. However, where in an accounting year, a separate balance sheet is maintained in respect of any branch then such branch shall be treated as a separate establishment. [ibid.]

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