Ms Kadam (supervisor) 06 November 2012

Non acceptance of bonus

We have about 10 -12 permanent workers all under unskilled category.They are being paid as per their scale sent by the Governement and are also registered under EPF and ESIC.However for diwali we have been paying them 3500 i.e half of their salary as per calculation.This year the workers are demanding that they should be paid one salary for bonus which we denied.They stated that give us one month salary as bonus or we dont want the bonus for the year.

We announced that those who do not want the bonus ,please give us in writing that the bonus payable is not accepted.They are neither giving anything in writing nor acccepting it.How do I handle this issue.Is there any other way to register about our willingness to pay bonus or in the alternative can i deposit the said bonus amount at some other governemnt institution hence the company is safe legally.

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darshana sawant (associate consultant) 06 November 2012

dear ms kadam,

The Payment of Bonus Act is applicable to your establishment, if 10 or more workmen are engaged. If your establishment is neew, then it is exempted for 5 years from it, however if the profit is made, then the act becomes applicable for that year. As per section 10 of the Act, you are required to pay minimum bonus @ 8.33% of wage earned by the employee during the accounting year or Rs 100/- whichever is higher. If allocable surplus exceeds minimum bonus payable then employer has to pay bonus proportionate to salary or wage earned during that period, ceiling is 20%(max.) Therefore, you can pay the bonus as per this calculation and you have time limit upto 30th Nov. for final payment (within 8 months of closure of accounting year). So violation of the act will attract punishment. If you send the bonus cheque by registered post, it will show your bonafides, yet you cant escape the liability under the law.