Why Stay at Retrospective effect on Bonus
There are large number of queries about obligation of the employers (establishments) to pay additional bonus for the year 2014-15. Hence it become imperative to know the current status of the amendment particularly its retrospective effect. The Kerala High Court in United Planters’ Association of Southern India and another vs. Union of India, vide Writ Petition(C) No.3025/2016(C) dated 27.1.2016 and also by Karnataka High Court in Karnataka Employers Association and another, Writ Petition No.5272 & 5311/2016 dated 2.2.2016 have stayed the Amendment to the Payment of Bonus Act to the extent it gives the retrospective effect from 1.4.2014. It is pertinent to state that any order passed in a writ petition by any High Court questioning the constitutional validity of a Parliamentary Act whether interim or final, keeping in view the provisions contained in Clause (2) of Art.226 of the Constitution of India, it will have effect throughout the territory of