Non-receipt of bonus

It is believed you are referring to the statutory bonus as per provisions of Payment of Bonus Act.

If you are eligible you may submit a gentle request to the good offices of your appointing authority, MD, Company Secretary with a copy to Head-HR and mention your employee code, period of service and request to supply you the bonus which is otherwise to be paid before 30^th Nov and you may mention that as it has not been computed in your FNF statement and has not been disbursed to you till date hence good offices may inform you in writing on the reason for non disbursement or supply it by redg. post.

You may also mention that company may supply you the payment preferbaly by Bank DD and thru Redg. post only and if company has taken any decision to trasnfer it by NEFT the same may be communicated to you by redg. post and you shall arrange to supply the details { or you may mention the same}. If the company has been paying salary in bank a/c and the a/c is active you can communicate that your bank a/c is s ame as already in company records. The company has to supply it within Nov or face penalty/punishment.

Wait for the answer and submit reminders{s}.

---“Bonus payable under the Act is linked with profits. The employer has to calculate "gross profits" of his establishment in the manner specified in section 4. Then from "gross profits" so calculated he has to deduct the sums referred to in section 6 as prior charges. The balance is called "available surplus". A percentage of the available surplus calculated in accordance with the provisions of sub-section (4) of section 2 is called "allocable surplus". Where, in respect of any year the allocable surplus exceeds the amount of minimum bonus payable to the employees, the employer must pay to every employee in respect of that year bonus in proportion to the salary or wage earned by the employee during the year subject to a maximum of twenty percent of such salary or wage. {Subsection 2(4), 4 , 5, 6 & 11}

The principle behind fixing a minimum and maximum limit for payment of bonus is that the rate of bonus should not fluctuate widely from year to year.

Every employer is required to maintain, in the prescribed form, the following three registers:

a.       a register showing the computation of the allocable surplus;

b.      a register showing the set-on and set-off of the allocable surplus;

c.       a register showing the details of the amount of bonus payable to each of employees, the amount of deductions if any, and the amount actually paid.

The employer is also required to send, in the prescribed form, an annual return to the Inspector appointed under the Act. The time limit for sending the annual return is thirty days from the expiry of the time limit specified in section 19 for payment of bonus. {Section 26 & Rule 4 and 5”

--------THE PAYMENT OF BONUS (AMENDMENT)  BILL, 2007:

2. In section 2 of the Payment of Bonus Act, 1965 (hereinafter referred to as the                     Amendment   of
                 principal Act), in clause (13), for the words “three thousand and five hundred rupees”,  
                 words “ten thousand rupees” shall be substituted.

----Payment of Bonus Act, 1965:

Sec 2, Definitions

{21} Salary or Wage

 Bonus depends upon Basic salary, DA & the food allowance or value of free food.

Yu may look into your wages.

----Minimum Bonus 8.33% min level upto Rs. 3500/- & Maximum Bonus @20%.

max level upto Rs. 8400/-

----Section 12: .

 Calculation of bonus with respect to certain employees.

       2*[12.  Calculation  of bonus with respect to certain employees.-

 Where  the  salary  or wage of an employee exceeds 3*[two thousand and

 five hundred rupees] per mensem, the bonus payable  to  such  employee

 under  section  10  or, as the case may be, under section 11, shall be

 calculated as if his salary or wage  were  3*[two  thousand  and  five

 hundred rupees] per mensem.]

Thank you very much sir. The company has nearly 50 employees and hence I believe that it is governed by the bonus act 1965. Further, is there any difference between customary bonus and statutory bonus? I mean that the company pays bonus only during the time of Diwali. All my mails still remain unanswered. I believe that not making a provision for bonus payable does not absolve the company from its liability to pay bonus. Further, as per my knowledge, i think that letter of confirmation as a permanent staff has nothing to do with payment of bonus. Even a person who was on probation for 6 months is entitled to receive bonus. Isn't it?

Every employee who is drawing a salary or wage upto Rs. 10000.00 per month (w.e.f. 1-4-2006) and who has worked for minimum period of 30 days in a year is entitled to be paid bonus. {Section 2(13) & 8}

For the purpose of calculation of bonus a salary or wage includes a basic salary or wage and dearness allowance but does not include other allowances, overtime salary or wage, house rent allowance, traveling concessions, bonus, employer's contribution to provident fund, retrenchment compensation, gratuity or commission. {Section 2(21)}

Customary bonus is bonus which is being paid by way of tradition or custom at a uniform rate over a number of years and which has no link with profit.

Read :THE PAYMENT OF BONUS ACT, 1965

17.  Adjustment of  customary or  interim bonus against bonus payable
under the Act.
 

The newly set up establishment is exempted from paying bonus to its employees in the first five years following the year in which the employer sells the goods produced or manufactured by him. If, however, the employer derives profit in any of the first five year, he has to pay bonus for that year. The provisions of set on and set off are not applicable in such cases. {Section 16}

Once again thank you very much sir for your valuable insight. Now i feel really confident to fight for my right with the company.

Sir, I followed up with the company's officials and they are of the opinion that since the company has not made any profit during F.Y. 2011-12, it has not declared bonus. Does their contention hold true? Can I claim for bonus next year? Kindly guide me.

Has the officials of the company stated so in writing? Transact only in writing, and extract a reply in writing.

Has the employees entered into an agreement with the company?

You may go thru the provisions of the Act and proceed further under expert advice of your lawyer on your specific case.

--Section 10 of the Payment of Bonus Act, 1965 provides that subject to the other provisions of the Act, every employer shall be bound to pay to employee in respect of the accounting year commencing on any day in 1979 and in respect of any subsequent year, a minimum bonus which shall be 8.33 per cent of the salary or wage earned by the employee during the accounting year or Rs. 100 (Rs. 60 in case of employees below 15 years of age), whichever is higher. The minimum bonus is payable whether or not employer has any allocable surplus in the accounting year.

--As per Section 31 (A) of the Payment of Bonus Act, 1965, there may be an agreement or settlement by the employees with their employer for payment of an annual bonus linked with production or productivity in lieu of bonus based on profits, as is payable under the Act. Accordingly, when such an agreement has been entered into the employees are entitled to receive bonus as per terms of the agreement/settlement, subject to the following restriction imposed by Section 31A;

(a)   any such agreement/settlement whereby the employees relinquish their right to receive minimum bonus under Section 10, shall be null and void in so far as it purports to deprive the employees of the right of receiving minimum bonus.

(b)   If the bonus payable under such agreement exceed 20% of the salary/wages earned by the employees during the relevant accounting year, such employees are not entitled to the excess over 20% of salary/wages.

Valuable advice of learned experts/members is sought.

Thanks a lot sir. Yes, the company official has informed me about this via e-mail. Further, there is no such contract in force with the employees.