Hi,

I need a clarification regarding the Bonus ACT. I have mentioned the details of the act below.. Could you please clarify if the point 14 states that an employee can be paid full bonus if they are on lay off, maternity leave , leave with sal, absent due to temporary disablement.  Please correct if my understanding is wrong.

13. Proportionate reduction in bonus in certain cases.—Where an employee has not worked for all the working days in an accounting year, the minimum bonus of one hundred rupees or, as the case may be, of sixty rupees, if such bonus is higher than 8.33 per cent, of his salary or wage for the days he has worked in that accounting year, shall be proportionately reduced.]

14. Computation of number of working days.—For the purposes of section 13, an employee shall be deemed to have worked in an establishment in any accounting year also on the days on which--
(a) he has been laid off under an agreement or as permitted by standing orders under the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), or under the Industrial Disputes Act, 1947 (14 of 1947), or under any other law applicable to the establishment;
(b) he has been on leave with salary or wage;
(c) he has been absent due to temporary disablement caused by accident arising out of and in the course of his employment; and
(d) the employee has been on maternity leave with salary or wage, during the accounting year.

Thanks

Giri

Clauses under section 14 (a) to (d) are considered as days worked by an employee under the Bonus Act. Since there is full payment of wages under these sub-sections (a) to (d) so these days are considered as days worked.

Section 13 covers absence with no wages.

Hope your points are clarified.

Thanks
Kamal Prasoon

Yes Kamal, it is clarified. Thanks a lot.

In very simple language, you can say that an employee absent from work without wages, will not be considered as worked days & bonus will not be payable for these days.

Rgds/Jitender