Payment of Bonus

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THE PAYMENT OF BONUS ACT, 1965 ACT NO. 21 OF 1965 [25th September, 1965.] 1*[An Act to provide for the payment of bonus to persons employed in certain establishments on the basis of profits or on the basis of production or productivity and for matters connected therewith.] BE it enacted by Parliament in the Sixteenth Year of the Republic of India as follows:-1. Short title extent and application. 1. Short title extent and application.- (1) This Act may be called the Payment of Bonus Act, 1965. (2) It extends to the whole of India 2***. (3) Save as otherwise provided in this Act, it shall apply to-(a) every factory; and (b) every other persons are year: establishment in which twenty or more employed on any day during an accounting

3*[Provided that the appropriate Government may, after giving not less than two months' notice of its intention so to do, by notification in the Official Gazette, apply the provisions of this Act with effect from such accounting year as may be specified in the notification, to any establishment or class of establishments [including an establishment being a factory within the meaning of subclause (ii) of clause (m) of section 2 of the Factories Act, 1948 (63 of 1948)] employing such number of persons less than twenty as may be specified in the notification; so, however, that the number of persons so specified shall in no case be less than ten.] (4) Save as otherwise provided in this Act, the provisions of this Act shall, in relation to a factory or other establishment to which this Act applies, have effect in respect of the accounting year commencing on any day in the year 1964 and in respect of every subsequent accounting year: 4*[Provided that in relation to the State of Jammu and kashmir, the reference to the accounting year commencing on any day in the year 1964 and every subsequent accounting year shall be construed as reference to the accounting year commencing on any day in the year 1968 and every subsequent accounting year:] --------------------------------------------------------------------1. Subs. by Act 23 of 1976, s. 2, for the long title (w.e.f. 25-91975). 2. The words "except the State of Jammu and Kashmir" omitted by Act 51 of 1970, s. 2 and Sch. 3. Ins. by Act 23 of 1976, s. 3 (w.e.f. 25-9-1975). 4. Added by Act 51 of 1970, s. 2 and Sch. (w.e.f. 1-9-1971). 426 1*[Provided further that when the provisions of this Act have been made applicable to any establishment or class of establishments by the issue of a notification under the proviso to sub-section (3), the reference to the accounting year commencing on any day in the year 1964 and every subsequent accounting year or, as the case may be, the reference to the accounting year commencing on any day in the year

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1968 and every subsequent accounting year, shall, in relation to such establishment or class of establishments, be construed as a reference to the accounting year specified in such notification and every subsequent accounting year.] (5) An establishment to which this Act applies 2*** shall continue to be governed by this Act notwithstanding that the number of persons employed therein falls below twenty 1*[or, as the case may be, the number specified in the notification issued under the proviso to subsection (3)]. 2. Definitions. 2. Definitions.requires,-In this Act, unless the context otherwise

(1) "accounting year" means-(i) in relation to a corporation, the year ending on the day on which the books and accounts of the corporation are to be closed and balanced; (ii) in relation to a company, the period in respect of which any profit and loss account of the company laid before it in annual general meeting is made up, whether that period is a year or not; (iii) in any other case-(a) the of April; or year commencing on the 1st day

(b) if the accounts of an establishment maintained by the employer thereof are closed and balanced on any day other than the 31st day of March, then, at the option of the employer, the...
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