Page 155 - DCOM207_LABOUR_LAWS

Labour Laws

Notes

Notes Payment of Bonus Act not to apply to certain classes of employees [Section 32]

1. Life Insurance Corporation
2. The Indian Red Cross Society or any other institution of a like nature,
3. Universities and other educational institutions,
4. Institutions (including hospitals, chambers of commerce and society welfare
institutions) established not for purposes of profit,
5. Employees employed through contractors on building operations,
6. Employees employed by the Reserve Bank of India,
7. The Industrial Finance Corporation of India,
8. Financial Corporations,

9. The National Bank for Agriculture and Rural Development,
10. The Unit Trust of India,
11. The Industrial Development Bank of India,

Task Does this Act prescribe any disqualifications also for claiming bonus?
Explain.

Self Assessment

Fill in the blanks:

7. .................... means all remuneration (other than remuneration in respect of over-time
work), includes dearness allowance.
8. An .................... shall be disqualified from receiving bonus under this Act, if he is dismissed
from service for fraud.
9. Every employee receiving salary or wages upto ..................... and engaged in any kind of
work whether skilled, unskilled, managerial, supervisory etc. is entitled to bonus for every
accounting year if he has worked for at least 30 working days in that year.

9.4 Computation of Bonus Payment

The method for calculation of annual bonus is as follow:

9.4.1 Computation of Gross Profits [Sec. 4]

There are a few differences in computation of gross profits in case of banking company and
other than banking companies. For accurate computation of the gross profits in case of banking
companies refer to First schedule and for other companies but not banking companies refer to
Second schedule. But overview for computation of gross profits is mentioned below:

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