Page 153 - DCOM207_LABOUR_LAWS

Labour Laws

Notes Rights of Employees are as follows:

l z Right to claim bonus payable under the Act and to make an application to the Government,
for the recovery of bonus due and unpaid, within one year of its becoming due.
l z Right to refer any dispute to the Labour Court/Tribunal Employees, to whom the Payment
of Bonus Act does not apply, cannot raise a dispute regarding bonus under the Industrial
Disputes Act.
l z Right to seek clarification and obtain information, on any item in the accounts of the
establishment.
Establishment in Public Sector

Establishment in Public Sector means an establishment owned, controlled or managed by-
(a) a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956);
(b) a corporation in which not less than forty per cent of its capital is held (whether singly or
taken together) by-
(i) the Government; or
(ii) the Reserve Bank of India; or
(iii) a corporation owned by the Government or the Reserve Bank of India.
The provisions of the Payment of Bonus Act, 1965 do not ordinarily apply to an establishment
in public sector. However, if the following two conditions are satisfied by such establishment in
any accounting year, the provisions of the Act shall apply to such establishment as they apply to
an establishment in the private sector:
(a) If in any accounting year, an establishment in the public sector sells goods produced or
manufactured by it or renders any services, in competition with an establishment in private
sector; and
(b) The income from such sale or services is not less than 20% of the gross income of the
establishment in public sector in that year. (Section 20)
Establishment in Private Sector

“Establishment in Private Sector” means any establishment other than an establishment in public
sector.

Self Assessment

Fill in the blanks:

4. The .................. in respect of any accounting year shall be the gross profits for that year after
deducting therefrom the sums referred to in section 6.
5. The .................. tax, calculated in accordance with the provisions of section 7, in respect
of an amount equal to the gross profits of the employer for the immediately preceding
accounting year.
6. Establishment in .................. Sector means any establishment other than an establishment in
public sector.

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