Bonus act applicablity
Gorthi
(Querist) 25 February 2014
This query is : Resolved
Dear All,
Is Bonus Acts apply to Pvt Ltd Company which is running under Educational field( Pre Primary education )
2. What is the pre condition to apply this act( In terms of Min Employee strength)
Regards
Kumar Doab
(Expert) 26 February 2014
THE PAYMENT OF BONUS ACT, 1965
1. Short title extent and application.-
2.
(b) every other establishment in which twenty or more persons are employed on any day during an accounting year:
(The Government can, however, apply the Act to any establishment employing less that 20 but not less than 10 persons.)
(15) "establishment in private sector" means any establishment other than an establishment in public sector;
32. Act not to apply to certain classes of employees.- Nothing in this Act shall apply to--
(v) employees employed by—
(b) universities and other educational institutions;
If the establishment is covered by this clause it does not have to seek any exemption under Sec: 36.
If the establishment termed as Pvt. Ltd company by you is not covered and exempted and employs the number of employees as envisaged under this Act then all employees drawing wages (Basic+DA) up to Rs.10000/pm and who has worked for minimum period of 30 days in a year is entitled to be paid bonus, should be eligible.
You may check with Inspector appointed under this Act.
