Amendment status not verified — confirm the current text below against the official source.
Act not to apply to certain classes of employees.—Nothing in this Act shall apply to— (i) 4[***] employees employed by the Life Insurance Corporation of India; (ii) seamen as defined in clause (42) of section 3 of the Merchant Shipping Act, 1958 (44 of 1958); (iii) employees registered or listed under any scheme made under the Dock Workers (Regulation of Employment) Act, 1948 (9 of 1948), and employed by registered or listed employers; 1 Ins. by Act 23 of 1976, sec. 19 (w.r.e.f. 25-9-1975). 2 Ins. by Act 66 of 1980, sec. 17 (w.r.e.f. 21-8-1980). 3 Subs, by Act 66 of 1980, sec. 17, for “Provided that” (w.r.e.f. 21-8-1980). 4 The words “employees employed by any insurer carrying on general insurance business and the” omitted by Act 62 of 1968, sec. 41. 12(2) The Payment of Bonus Rules, 1975 (iv) employees employed by an establishment engaged in any industry carried on by or under the authority of any department of the Central Government or a State Government or a local authority; (v) employees employed by— (a) the Indian Red Cross Society or any other institution of a like nature (including its branches); (b) universities and other educational institutions; (c) institutions (including hospitals, chambers of commerce and social welfare institutions) established not for purposes of profit; 1[***] 2[***] (viii) employees employed by the Reserve Bank of India; (ix) employees employed by— (a) the Industrial Finance Corporation of India; (b) any Financial Corporation established under section 3, or any Joint Financial Corporation established under section 3A, of the State Financial Corporations Act, 1951 (63 of 1951); (c) the Deposit Insurance Corporation; 3[(d) the National Bank for Agriculture and Rural Development;] (e) the Unit Trust of India; (f) the Industrial Development Bank of India; 4[(fa) the Small Industries Development Bank of India established under section 3 of the Small Industries Development Bank of India Act, 1989;] 5[(ff) the National Housing Bank;] (g) any other financial institution 6[(other than a banking company)], being being an establishment in public sector, which the Central Government may, by notification in the Official Gazette, specify, having regard to — (i) its capital structure; 1 Clause (vi) omitted by Act 45 of 2007, Section 4(w.r.e.f. 1.4.2006). Clause (vi) before omission stood as under: "(vi) employees employed through contractors on building operations;" 2 Clause (vii) omitted by Act 66 of 1980, sec. 18(A) (w.r.e.f 21-8-1980). Earlier Clause (vii) was substituted was Act 23 of 1976, Section 20-A (w.r.e.f. 25.09.1975) 3 Subs, by Act 61 of 1981, sec. 61 and Sch. II, for sub-clause (d) {w.e.f. 12-7-1982). 4 Ins. by Act 39 of 1989, sec. 53 and Sch. H (w.e.f. 7-3-1990). 5 Omitted by Act 66 of 1980, sec.18 (w.r.e.f. 21-8-1980) and ins. by Act 53 of 1987, sec. 56 and Sen. II (w.e.f. 9-7-1988). 6 Ins. by Act 66 of 1980, Sec. 18(b)(ii) (w.r.e.f. 21.08.1980). Earlier the words "other than a Banking Company" were omitted by Act 23 of 1976, Section 20(b)(ii) (w.r.e.f. 25.09.1975) 12(2) The Payment of Bonus Rules, 1975 (ii) its objectives and the nature of its activities; (iii) the nature and extent of financial assistance or any concession given to it by the Government; and (iv) any other relevant factor 1[***] (xi) employees employed by inland water transport establishments operating on routes passing through any other country. (i) Appellant-Medical College and hospital was held to be neither an educational institution coming under section 32(v)(b) of the Payment of Bonus Act, 1965 nor a hospital which was run on a non-profit basis; Christian Medical College and Hospital v. Presiding Officer, Industrial Tribunal, Madras, 2003 (III) LLJ 650 (Mad). (ii) Haryana Housing Board cannot be treated to be a local authority within the meaning of section 32 (iv) of the Act; Housing Board of Haryana v. Haryana Housing Board Employees’ Union, AIR 1996 SC 434. (iii) Tamil Nadu Water Supply and Drainage Board is an institution established for the purposes of profit. It is, therefore, not excluded from the preview of section 32 (v) (c) of the Act; Tamil Nadu Water Supply and Drainage Board v. Tamil Nadu Water Supply and Drainage Board Engineers’ Association, 1998 LLR 417. (iv) Local bodies do not come within the purview of this Act; Union of India v. R.C. jain, AIR 1981 SC 951. (v) Institutions such as hospitals, social welfare institutions and chambers of commerce are intended to be exempted under section 32 (v) (c); Maharashtra Electricity Board v. M.C. Chitale, (1981) 1 LLJ 162 (Bom) (DB). (vi) This Act is not applicable to agents of State Governments; Maharashtra State Co-op. Marketing Federation Ltd. v. 1st Labour Court, (1988) 57 FLR 301 (Bom). (vii)Institutions designed for earning profit should pay the minimum bonus to their employees; T.N. Water Supply & Drainage Board Engineers’ Association v. Government of Tamil Nadu, (1991) 2 LLJ 394 (Mad). 1 Subs, by Act 61 of 1981, sec. 61 and Sch. II, for sub-clause (d) {w.e.f. 12-7-1982). Case Law 12(2) The Payment of Bonus Rules, 1975