Payment of Bonus Act,1965

Act No : 21

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Section : Adjustment of customary or interim bonus against bonus payable underthe Act.

17. Adjustment of customary or interim bonus against bonus payable under the Act.- Where in any accounting year-- (a) an employer has paid any puja bonus or other customary bonus to an employee; or (b) an employer has paid a part of the bonus payable under this Act to an employee before the date on which such bonus becomes payable, then, the employer shall be entitled to deduct the amount of bonus so paid from the amount of bonus payable by him to the employee under this Act in respect of that accounting year and the employee shall be entitled to receive only the balance.

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Comments

Prakash Yedhula wrote on 19 April 2009

(i) Payment of any customary bonus, such as attendance bonus, festival bonus, or the like, does not absolve the management from their liability to pay statutory bonus. [Baidyanath Bhawan Mazdoor Union v. Baidyanath Ayurvedic Bhawan Pvt. Ltd. & Anr., 1984 Lab. I.C. 148]. (ii) Customary bonus is adjustable against the statutory bonus. [ibid.] (iii) The employee is bound to refund the excess amount of bonus. [Landra Engineering & Foundary Works v. State of Punjab & Ors., (1970) 38 F.J.R. 538 (P &H) ].

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