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8/8/2019 Final Bonus Act
1/23
By :
Anamika - 82086Vikas Mudgal - 82044
Nidhi - 82028
8/8/2019 Final Bonus Act
2/23
Bonus is not defined in the Payment of
Bonus Act
It is an ex-gratia payment made by theemployer to his workers to provide a
stimulus for extra effort by them in the
production process.
It is a statuary requirement and isdifferent from other bonus like Diwali
,Durga Puja etc
8/8/2019 Final Bonus Act
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The Payment of Bonus Act provides for
payment of bonus to persons employed
in certain establishment on the basis of
profits or on the basis of production or
productivity and for matters connected
therein.
8/8/2019 Final Bonus Act
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The act aims at providing a simpler formulae for thepayment of bonus to persons employed in certainestablishment on the basis of production or productivity sothat disputes on this account are minimized.
Extend to whole of India and is applicable to every factoryas defined under the Factories act and every otherestablishment in which 20 or more person are employedon any day during an accounting year
It covers all employees (except apprentice) including
supervisors, Managers, Administrators,T
echnical &Clericals Staff employed on a salary or wage notexceeding Rs. 10000 per month. The salary or wage of aworker includes basic wage and dearness allowance only
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Labour Appellate Tribunal in AhemdabadTextile Mills Case gives LAT formulae todecide amount of profit to be given as bonus
LA
T= Gross Profit-[Depreciation+Rehabilitation (All Kinds) + 6% on paid up
Share Capital + Less than 6% on workingCapital
=Available Surplus
i.e. Gross Profit Prior Charges
From available surplus reasonable share ispaid as Bonus
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Every employee shall be entitled to be paid by
his employer in an accounting year, bonus, in
accordance with the provisions of this Act,
provided he has worked in the establishment fornot less than thirty working days in that year
8/8/2019 Final Bonus Act
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employee means
any person (other than an apprentice) employed on a
salary or wage not exceeding three thousand and five
hundred rupees (Rs.10000/- amended ) per month in any
industry
to do any skilled or unskilled, manual, supervisory,
managerial, administrative, technical or clerical work
for hire or reward,
whether the terms of employment be express or implied;
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Work out and pay annual bonus to the
workers as required under this Act
Maintain registers and records related to
bonus
Provide required information to the
Inspector as per the act.
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Withhold payment of bonus to anemployee who has been dismissed forfraud , riotous and violent misbehavior
,theft etc. Deduction from the bonus y In case gift or customary bonus already paid
y Bonus already paid in advance
y Financial loss caused to the employer by themisconduct of the employee which has beenproved
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Claim bonus ; make an application for
the recovery of the bonus due to him
within one year of its becoming due to
the appropriate Government
Obtain clarification or information
relating to any item in the item in the
balance sheet or statement of profit andloss account which may be considered
necessary
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An employee shall be disqualified from receiving
bonus under this Act, if he is dismissed from
service for
fraud; or
riotous or violent behavior while on the premises
of the establishment; or
theft, misappropriation or sabotage of any
property of the establishment.
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Every employer shall be bound to pay to every eligible
employee in respect of the accounting year
a minimum bonus which shall be 8.33 per cent of the
salary or wages earned by the employee during the
accounting year or
one hundred rupees,(sixty rupees for employees below
15 years of age)
whichever is higher,
whether or not the employer has any allocable surplusin the accounting year
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Where an employee has not worked for all the
working days in an accounting year,
the minimum bonus of one hundred rupees or,
as the case may be, of sixty rupees,
if such bonus is higher than 8.33 per cent of his
salary or wage of the days he has worked in that
accounting year, shall be proportionately reduced
8/8/2019 Final Bonus Act
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an employee shall be deemed to have worked in an
establishment in also on the days on which
he has been laid off under an agreement or aspermitted by standing orders
he has been on leave with salary or wages
absent due to temporary disablement caused by
accident arising out of and in the course of hisemployment,
the employee has been on maternity leave with wages
8/8/2019 Final Bonus Act
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Where for any accounting year, the allocable surplus
exceeds the amount of maximum bonus payable to theemployees in the establishment under section 11, then,
the excess shall, subject to a limit of twenty per cent of
the total salary or wages of the employees employed in
the establishment in that accounting year, be carried
forward for being set on in the succeeding accountingyear and so on up to and inclusive of the fourth
accounting year to be utilized for the purpose of payment
of bonus.
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Where for any accounting year, there is no available
surplus or the allocable surplus in respect of that yearfalls short of the amount of minimum bonus payable to
the employees in the establishment under section 10,
and there is no amount or sufficient amount carried
forward and set on under sub-section (1) which could beutilized for the purpose of payment of the minimum
bonus, then such minimum amount or the deficiency, as
the case may be, shall be carried forward for being set off
in the succeeding accounting year and so on up to and
inclusive of the fourth accounting year
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In case of dispute between employer &
employee ,it comes within the purview of
Industrial Dispute Act & will be solved
accordingly.
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If any person contravenes any of the
provisions of this act or fails to comply
with the direction or requisition given by
the appropriate authorities shall bepunishable with imprisonment for a term
which may extend to six month , or with
fine which may extend to one thousandrupees or with both.
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Thank You