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Employers Need Not Submit Annual Return Under Payment Of Bonus Rules MINISTRY OF LABOUR AND EMPLOYMENT NOTIFICATION New Delhi, the 6th December, 2016 G.S.R. 1115(E).—Whereas a draft of the Payment of Bonus (Amendment) Rules, 2016, further to amend the Payment of Bonus Rules, 1975, which the Central Government proposes to make in exercise of the powers conferred by section 38 of the Payment of Bonus Act, 1965 (21 of 1965), was published, as required by sub-section (1) of the said section 38, in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification of the Government of India in the Ministry of Labour and Employment number G.S.R. 915(E), dated the 26th September, 2016 inviting objections and suggestions from all persons likely to be affected thereby, before the expiry of a period of thirty days from the date on which copies of Official Gazette containing the said notification was made available to the public; And whereas the copies of the sa...

Here we have expedient gen to The Payment of Bonus and amendment. Pursuant to The Payment of Bonus Amendment dated 31 December, 2015 of increase in wages ceiling i.e. Rs. 21000/- and bonus payable at Rs. 7000/- or The Minimum wages fixed by appropriate Gov for schedule employment, which ever is higher, now The Honourable High Court of Kerala at Ernakulam interim stayed with retrospective of payment of Bonus also along with the payment to determined on the basis of the salary taken based on minimum wages . The other prescription would apply. The Petitioner company would maintain a separate account and deposit the difference in the said account, without distributing the same to the employees. Writ Petition (c) No. 28351/2016(T)  M/s. United Breweries Limited                        V/S  Union Of India  Premier Breweries Employees Association  Premier Breweries Employees Union ...

On 13 June 2016, the Division Bench of the Hon'ble Bombay High Court (comprising of Hon'ble Justice V M Kanade and Hon'ble Justice M S Sonak) has passed an ad interim order staying the retrospective operation of the Payment of Bonus (Amendment) Act, 2015 (the Amendment Act) in a writ petition filed by Tech Mahindra Limited, who was represented by the Firm. Background The Payment of Bonus Act, 1965 (the Principal Act) was enacted by the Parliament in 1965. The preamble to the Principal Act states that it is an " Act to provide for the payment of bonus to persons employed in certain establishments on the basis of profit or on the basis of production or productivity and for matters connected therewith " . The Principal Act provides for the mandatory annual payment of bonus, calculated on the basis of the gross-profits which are determined at the close of the accounting year, to eligible employees of establishments which employ 20 or more persons. Under the Pr...

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 e...

  Madhya Pradesh  labour offices follows Kerala HC order with regard to The Payment of Bonus Act Amendment 2015, in respect of retrospective effect  

 

HON’BLE HIGH COURT KARNATAKA STAYS OF RETROSPECTIVE   EFFECT OF PAYMENT OF BONUS (AMENDMENT) ACT 2015.  Mr B C Prabhakar,President,The Karnataka Employers Association and another establishment have filed the Writ Petition before Hon’ble High Court of Karnataka in WP No.5272 & 5311/2016 challenging the portion of the Payment of Bonus (Amendment) Act 2015  (No. 6 of  2016)   published in the Gazette of India Extraordinary Part II Section -1, dated 1.1.2016 in so far as  the retrospective  operation of the amendment from 1.4.2014 and also the amendment in so far as relates to words “or the Minimum Wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher” as  inserted in the   Section 12 of the Act.    The Writ Petition came up for preliminary hearing on 2.2.2016.  After hearing the matter the Hon’ble Court has stayed the Amendment to the Payment of Bonus A...

The latest amendment to the Payment of Bonus Act, 1965 ("Principal Act") has come into effect through the Payment of Bonus (Amendment) Act, 2015 ("Amendment"). The Amendment has brought about significant changes to Section 2 (Definitions) and Section 12 (Calculation of bonus with respect to certain employees). BACKGROUND The Act provides a statutory right to employees of an establishment to share the profits of his/her employer. As per the Principal Act, any employee who was drawing a salary or wage not exceeding ten thousand rupees per month was eligible to be paid a bonus. Section 2 (13) of the Principal Act states that, "employee" means any person (other than an apprentice) employed on a salary or wage not exceeding ten thousand rupees per mensem 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 implie...

comply4HR: Full explanation of The Payment of Bonus (Amendmen... : Full explanation of the amendment in the Bonus Act is given below : First of all, giving you permutation and combination of applicatio...

Dear Readers, Happy new year The Payment Of Bonus (Amendment) Act, 2015 Received The Accent Of The President on 31-12-2015 and notified in gazette on 01-01-2016 for general information. THE PAYMENT OF BONUS (AMENDMENT) ACT, 2015 PDF FILE LINK   Regards Rahul Kumar 08051139888 a-Street HR

The Lok Sabha on 22.12.2015 passed a bill allowing doubling of wage ceiling for calculating bonus to Rs 7,000 per month for factory workers with establishments with 20 or more workers, with the benefits being applicable retrospectively from April 2014. The Payment of Bonus (Amendment) Bill, 2015, was passed by a voice vote, with some members objecting to the raising of eligibility limit for payment of bonus from a salary of Rs 10,000 per month to Rs 21,000. Replying to a debate on the legislation, Labour Minister Bandaru Dattatreya said the Government has ensured that the interest of workers are protected and there is no infringement on their rights. “Because of Bihar Elections this bill got delayed… The Prime Minister spoke to me and asked why should the benefits of this Act should accrue to workers from 2015. It should be made available from the April 2014,” he said while moving an official amendment to the Bill. The official amendment provides that the benefits of the Ac...

Will the principal employer be liable to pay bonus to the employees employed by the contractor? Principal employer is liable to pay wages to the employees of the contractor if the latter fails to make payment of wages to his employees unders Section 21(4) of The Contract Labour (Regulation & Abolition) 1970.  On this analogy, a question arises as to whether principal employer is liable to pay bonus to the employees of the contractor in case the contractor, if liable, fails to pay bonus to its employees.  Having regard to the definition of employee found in section 2(13) of the Payment of Bonus Act, the claim of the Labour Department that the contract labour are also entitled for payment of bonus on par with the regular employees, as contended in the complaint, has no legal basis and it does not amount to violation of section 11 of the Act attracting punishment under section 28 of the said Act. It is clear that the contract labour cannot be treated o...

MADRAS HIGH COURT Hon'ble Mr. K. Mohan Ram, J. Hon'ble Mr. S. Palanivelu, J. W.A. No. 1229/2000 C.M.P. No. 10831/2000, D/–10-11-2010 Management of India Tourism Development Corporation, Madras and Anr. vs. General Secretary, All India ITDC Employees' Union PAYMENT OF BONUS ACT, 1965 – Section 3  –  Bonus – Minimum Bonus  –  Appellants challenged the order of Learned Single Judge allowing writ petition and directing the petitioner to pay bonus to all the workers even in future, on consideration of overall balance sheet prepared on the basis of profit and loss account of the petitioner-Corporation – The Division Bench observed;- (i) The Learned Single Judge has not at all referred to the provisions of Section 3 of the Act; (ii) The Labour Judge had rightly concluded that each and every duty free shop is treated as a separate unit for computation of quantum of bonus under section 3 of the Act. Paras 4, 10 and 15 For Appellant:  Mr. S. Jayaraman, Advoca...

The Payment of Bonus (Amendment) Bill, 2015   Is only approved by Union Cabinet.  Now the bill will be tabled in Parliament for approval in its  winter session. The Cabinet on Wednesday decided to double the wage ceiling for calculating bonus to Rs 7,000 per month for factory workers and establishments with 20 or more workers. The Payment of Bonus (Amendment) Bill, 2015 to enhance the monthly bonus calculation ceiling to Rs 7,000 per month from existing Rs 3,500 was approved by Union Cabinet here The amendment bill will be made effective from April 1, 2015. Now the bill will be tabled in Parliament for approvalThe bill also seeks to enhance the eligibility limit for payment of bonus from the salary or wage of an employee from Rs 10,000 per month to Rs 21,000. The Payment of Bonus Act 1965 is applicable to every factory and other establishment in which 20 or more persons are employed on any day during an accounting year. The bill also provides for...