Page 325 - DMGT516_LABOUR_LEGISLATIONS

Labour Legislations

Notes (1A) In the first five accounting years following the accounting year in which the employer
sells the goods produced or manufactured by him or renders services, as the case may be,
from such establishment, bonus shall be payable only in respect of the accounting year in
which the employer derives profit from such establishment and such bonus shall be
calculated in accordance with the provisions of this Act in relation to that year, but without
applying the provisions of section 15.
(1B) For the sixth and seventh accounting years following the accounting year in which the
employer sells the goods produced or manufactured by him or renders services, as the
case may be, from such establishment, the provisions of section 15 shall apply, subject to
the following modifications, namely-
(i) for the sixth accounting year: set on or set off as the case may be, shall be made in the
manner illustrated in the [Fourth Schedule] taking into account the excess or
deficiency, if any, as the case may be, of the allocable surplus set on or set off in
respect of the fifth and sixth accounting years;
(ii) for the seventh accounting year-set on or set off, as the case may be, shall be made in
the manner illustrated in the [Fourth Schedule] taking into account the excess or
deficiency, if any, as the case may be, of the allocable surplus set on or set off in
respect of the fifth, sixth and seventh accounting years.

(IC) From the eighth accounting year following the accounting year in which the employer
sells the goods produced or manufactured by him or renders services, as the case may be,
from such establishment, the provisions of section 15 shall apply in relation to such
establishment as they apply in relation to any other establishment.

Time-limit Payment or Bonus

All amounts payable to an employee by way of bonus under this Act shall be paid in cash by his
employer:
(a) where there is a dispute regarding payment of bonus pending before any authority under
section 22, within a month from the date on which the award becomes enforceable or the
settlement comes into operation, in respect of such dispute;
(b ) in any other case, within a period of eight months from the close of the accounting year;
Provided that the appropriate Government or such authority as the appropriate Government
may specify in this behalf may, upon an application made to it by the employer and for sufficient
reasons, by order, extend the said period of eight months to such further period or periods as it
thinks fit; so, however, that the total period so extended shall not in any case exceed two years.

13.4 Bonus Act

Every employer employing 20 or more persons, is liable to pay bonus to his employees in
respect of each accounting year, as per the provisions of the Payment of Bonus Act, 1965 (Abridged
Text of Important Provisions of the Act is given in Appendix 10-I). The main obligations of an
employer are as follows:
(1) To calculate and pay the annual bonus as required under the Act.
(2) To maintain such records/registers as may be prescribed, in the prescribed manner. (See
para ‘Registers and Returns’).
(3) To furnish such information to the Inspector as may be required by him.

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