Amendment status not verified — confirm the current text below against the official source.
Adjustment of customary or interim bonus against bonus payable under the Act.—Where in any accounting year— (a) an employer has paid any puja bonus or other customary bonus to an employee; or (b) an employer has paid a part of the bonus payable under this Act to an employee before the date on which such bonus becomes payable, then, the employer shall be entitled to deduct the amount of bonus so paid from the amount of bonus payable by him to the employee under this Act in respect of that accounting year and the employee shall be entitled to receive only the balance. (i) Claim of annual bonus was rooted in custom but qualified by negotiations/ settlements held to be customary in nature and not statutory based only on settlement linked with productivity or profits; Mukund Ltd. v. Mukund Kamgar Union, 2003 (II) LL] 410 (Bom). (ii) Payment of any customary bonus, such as attendance bonus, festival bonus, or the like, does not absolve the management from their liability to pay statutory bonus; Baidyanath Bhawan Mazdoor Union v. Baidyanath Ayurvedic Bhawan Pvt. Ltd., 1984 Lab 1C 148. (iii) The employee is bound to refund the excess amount of bonus; Landra Engineering & Foundary Works v. State of Punjab, (1970) 38 FJL 538 (P&H).