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jaykumtekar (Legal Advisor)     04 September 2012

Payment of bonus act.

Ours is a Factory and situated at Maharashtra.  Govt. Labour officer the inspector under the payment of Bonus Act visited our factory in the month of November and issued notice to us for non payment of Bonus under the Pyament of Bonus Act, 1965.  Subsequently we were issued with a showcause notice and thereafter a criminal proceeding were instituted against us with JMFC.  In the Criminal complaint our Director was named as an accused in the said case.

I am been given to understand that Directors cannot be made accused in the said case and it is the Factory Manager / Occupier who is looking after the day to day conducting of business who is liable for the same.  Normally it is the tendency of the Govt. labour officer to directly implicate the Directors of the company to bring pressure on the Company.

Requesting to provide a citation on the same lines as to whether director can be held responsible for non payment of Bonus to it workmen under the Payment of Bonus Act.


Jay Kumtekar


 1 Replies

M.S.R.Murty ( Manager (Admn))     05 September 2012

Dear Sir,

Please note, when you have at the time of applied for the Labour licence,  might have included your name as Employer.  Accordingly they might have issued notices on  your name.  Section 2(14) of the Act specifies who has the ultimate control over the establishment is Employer.  If such afairs are entrusted to Manager or some other dignotory, same person is responsible. 

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