Bonus Payment Act
Pradeep
(Querist) 10 November 2016
This query is : Resolved
Hello,
As per recent amendment of payment act, company has to pay bonus to its employees who has the basic salary of less than 21000. I approached my employer to get this bonus. But he said, Bombay high court has given stay to retroactive changes. So we can't give any bonus until court gives the judgment.
When I checked with other companies in Bangalore. They have already given the bonus to their employees.
Please advice me, if I want to file a complaint against my employer to whom I need to approach?
Please let me know the next course of action that I have to take.
Thanks.,
Pradeep
Ms.Usha Kapoor
(Expert) 10 November 2016
You can file a civil suit for injunction against your employer to issue bonus like other companies AND NEED NOT WAIT FOR THE COURT DECISION TO BE DISPOSED OF.PRIOR TO THAT ISSUE 1 MONTH legal NOTICE TO THE EMPLOYER.
Kumar Doab
(Expert) 10 November 2016
Submit your request to pay Bonus in writing under proper acknowledgment.
Let company reply in writing whatever it wants.
First obtain reply in writing.
Rajendra K Goyal
(Expert) 10 November 2016
Have you gone through / referred the stay orders?
Whether it prohibit any company to pay bonus?
If one company is paying bonus, you are not entitled automatically till court clarifies to the effect.
Kumar Doab
(Expert) 10 November 2016
The judgment mentioned by you is for 'Retrospective Effect'.
Does it put blanket ban on payment?
Dr J C Vashista
(Expert) 11 November 2016
No law is enacted for retrospective effect, please correct me if I have misinterpreted, misconceived and misunderstood.
Kumar Doab
(Expert) 11 November 2016
Dr. J.C.Vashista,
Sir,
It is the author that has posted that:
" But he said, Bombay high court has given stay to retroactive changes. "
Kumar Doab
(Expert) 11 November 2016
Your employer is under obligation to decline with reason and in writing.
Ask the designated person to quote the judgment cited on behalf of employer.
Rajendra K Goyal
(Expert) 11 November 2016
You have not mentioned / clarified whether the company has declared any bonus for other employees otherwise.
Pradeep
(Querist) 12 November 2016
Hello all,
Thanks for your assistance..
Please note that, company has not given this bonus to any employees.. I got the email replay from Sr. Manger saying
"On 14 June 2016, Bombay High Court issued a stay order on the retrospective payout, basis the stay order, Statutory bonus is to be paid to eligible employees as per 2015 amendment effective 1 April 2016. We are awaiting a judgment on this regard and adv"
Please let me know, does this stay allow all employers/Company to stop paying bonus? Or is it only applicable to the company who obtained this stay? As per my knowledge Tech mahendra company filed this case in Bombay high court.
Also., if I can file the complaint against my company. Please let me know the procedure and any contact/email id so that I cal file complaint.
It is also very helpful if anyone tell me current status of this stay.
Dr J C Vashista
(Expert) 13 November 2016
Hello Pardeep,
Learn to address an expert, my sincere advise to you!!!!
Consult your lawyer if you have appointed/ engaged otherwise engage a local lawyer.
Rajendra K Goyal
(Expert) 13 November 2016
Unable to trace the referred case decision, if have link, may post.
Kumar Doab
(Expert) 13 November 2016
Author @ Pradeep,
Hello etc are not proper while your query is being addressed by experts.
Kumar Doab
(Expert) 13 November 2016
You have posted that:
"Statutory bonus is to be paid to eligible employees as per 2015 amendment effective 1 April 2016"
Has it been paid as per usual rate i.e/ before amendment, last amendment without retrospective effect?
If NO; then does the judgment lay down that bonus should not be paid?
You may ask the sender of email to send you complete details, ase number, title of the judgment and even copy of the judgment based on which it has drafted his/her reply.
Kumar Doab
(Expert) 13 November 2016
As per some publications;
Upon representations from various industry bodies by way of writ petitions in various State High Courts challenging the retrospective effect from FY 2014-15, several high courts have stayed the retrospective operation temporarily.
S. No. Court/ Office Concerned Case Title & No. Date of Passing Interim Stay Order
1. Kerala High Court The United Planters' Association of Southern India & Anr. V. Union of India
W.P. (C) No. 3025/ 2016 (C) January 27, 2016
2. Karnataka High Court Karnataka Employees Association V. Union of India
W.P. 5272/ 2016 February 2, 2016
3. Madhya Pradesh Labour Office Following the orders given by the Kerala and Karnataka High Courts February 4, 2016
4. Allahabad High Court (Uttar Pradesh) Benara Udyog Ltd. V. Union of India & 3 Ors.
WRIT (C) No. 6098/ 2016 February 12, 2016
5. Gujarat High Court Federation of Gujarat Industries V. Union of India & Anr.
Special Civil Application No. 5207/ 2016 April 5, 2016
6. Punjab & Haryana High Court Faridabad Industries Association & Anr. V. Union of India C.W.P. No. 2859/ 2016 AND Gurgaon Industries Association & Anr. V. Union of India C.W.P. No. 2999/ 2016.
Kumar Doab
(Expert) 13 November 2016
As per some publications;
Confederation of Indian Industries (CII) had written to the Labour Ministry on January 8, 2016 seeking a clarification to be given to allow industries to give bonus installments over the next two financial years to ease off the burden. It also demanded that the excess bonus received by employees, besides the minimum bonus, be adjusted in the next two financial years so as to "accommodate the newer workforce using the same or reduced allocable surplus." In another report, a FICCI representative had reportedly stated that the industry had urged the government to amend the law prospectively from 2016-17 rather than give it a retrospective effect. The Micro, Small and Medium Enterprises (MSME) chamber, Indian Industries Association (IIA) in the Indian state of Uttar Pradesh is also known to have strongly opposed the retrospective implementation of the amendment, stating that MSMEs have no means to pay such bonus in arrears, while the Government by way of collecting taxes can pay the bonus. Even NASSCOM reportedly made representations on the retrospective applicability, financial impact, administrative challenges and the ambiguities in the revised Act to the concerned ministries.
Kumar Doab
(Expert) 13 November 2016
The judgment mentioned by you is for 'Retrospective Effect'.
The person in your establishment has not answered: Does it put blanket ban on payment?
So the establishment should pay at old rate, before 30th Nov and avoid penalty.
Kumar Doab
(Expert) 13 November 2016
Although;
It would seem from the decision of the Supreme Court in Kusum Ingots & Alloys Ltd. v. Union of India, (2004) 6 SCC 254, that an order passed on a writ petition questioning the constitutionality of a parliamentary Act, whether interim or final keeping in view the provisions contained in clause (2) of Article 226 of the Constitution of India, will have effect throughout the territory of India subject of course to the applicability of the Act
The employer can offer superior/better terms of payment but not inferior.
So your employer can decided to pay at old rate or superior benefits.
Pradeep
(Querist) 18 November 2016
Can anyone share us what is the current status of this stay? Any recent changes..
Kumar Doab
(Expert) 18 November 2016
You can check at website of Bombay HC.
Local counsels specializing in Labor/Service matters can also update you.
Employee's/trade unions leaders must also be watching it.
