PBS KUMAR (HR - PROFESSIONAL) 24 September 2012

Bonus for mac's

Dear Experts,

One of the MNC company is absorbed the Indian firm and the existing firm is already covered the Bonus. Now the MNC firm is saying that the company is sever loss, so that we need not pay the Bonus. Since the company is merged with another big company is it necessary to declared Bonus for the running severly loss Indinan company ?

If in a group of companies if one company getting loss the Bonus need not to pay the loss unit employees justified ?

Your answers will be useful for number of people.

URGENT.

Regards,

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5 Replies

M.S.R.Murty ( Manager (Admn)) 24 September 2012

Dear Sir,

It is not justified and under section 10 of the Payment of Bonus Act 1965 , Employer should pay minimum 8.33% bonus to thier employees those who are drawing less than Rs.10,000/- per month , whether the Employer runs the concern in profit or loss.

Vinod kashyap (Advocate & Legal advisor) 24 September 2012

Yes, Mr. Murti is right, but there is exception cluase for new company who is not getting profit for first five year. After five year statutory bonus is applicable.

PBS KUMAR (HR - PROFESSIONAL) 25 September 2012

Dear Mr. Vinod ji,

The company is already MNC which is covered under BONUS Act. Now the existing company due to losses another MNC company taken. So is it mandatory to pay the Bonus the current MNC company ?

Regards,

Kumar Doab (FIN) 25 September 2012

It is an interesting thread and learned experts/members have enriched the forum with their valuable advice.

It is felt that new management has assumed control of the company without violating any terms of employment that were put in place by the former management and vintage of employees hall be counted in service. The new management {may be having the status of parent company now} may pay bonus.

Valuable advice of learned experts/members is sought.