Amendment status not verified — confirm the current text below against the official source.
Disqualification for bonus.—Notwithstanding anything contained in this Act, an employee shall be disqualified from receiving bonus under this Act, if he is dismissed from service for— (a) fraud; or (b) riotous or violent behaviour while on the premises of the establishment; or (c) theft, misappropriation or sabotage of any property of the establishment. (i) Bar of disqualification for bonus imposed under section 9 is a clear and unequivocal bar and if the wording of the provisions also is carefully gone through a distinction cannot be drawn between the bonus payable subsequent to the order of termination or prior to the order of termination and the bar is applicable to the bonus as such payable under the Act. Hence, awarding of bonus to workman, on facts, is sustainable in law; KL] Plastics Ltd, v. Labour Court-Ill, Hyderabad, 2002 (3) LLJ 619 Bom. Case Law Case Law 12(2) The Payment of Bonus Rules, 1975 (ii) Bonus can be forfeited under section 9 only with reference to accounting year in which the employee committed fraud, theft, etc.; Himalaya Drug Co. v. P.O., 2nd Addl. Labour Court,, (1986) 52 FLR 704. 1[10. Payment of minimum bonus.—Subject to the other provisions of this Act, every employer shall be bound to pay to every employee in respect of the accounting year commencing on any day in the year 1979 and in respect of every subsequent accounting year, a minimum bonus which shall be 8.33 per cent, of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year: Provided that where an employee has not completed fifteen years of age at the beginning of the accounting year, the provisions of this section shall have effect in relation to such employee as if for the words “one hundred rupees”, the words “sixty rupees” were substituted.] 2[11.Payment of maximum bonus.— (1) Where in respect of any accounting year referred to in section 10, the allocable surplus exceeds the amount of minimum bonus payable to the employees under that section, the employer shall, in lieu of such minimum bonus, be bound to pay to every employee in respect of that accounting year bonus which shall be an amount in proportion to the salary or wage earned by the employee during the accounting year subject to a maximum of twenty per cent, of such salary or wage. (2) In computing the allocable surplus under this section, the amount set on or the amount set off under the provisions of section 15 shall be taken into account^ in accordance with the provisions of that section.] 3[12.Calculation of bonus with respect to certain employees.—Where the salary or wage of an employee exceeds 1 [three thousand and five hundred 1 Section 10 subs- by Act 23 of 1976, see. 7 (w.e.f. 25-9-1975) and again subs, by Act 66 of 1980, sec. 6 (w.e.f- 21-8-1980). 2 Section 11 omitted by Act 23 of 1976, sec. 8 (w.e.f. 25-9-1975) and ins, by Act 66 of 1980, sec. 6 (w.re.f. 21-8-1980). 3 Section 12 omitted by Act 30 of 1985, sec. 2 and ins. by Act 67 of 1985, sec. 3 (w.e.f. 7-11- 1985). 12(2) The Payment of Bonus Rules, 1975 rupees] per mensem, the bonus payable to such employee under section 10 or, as the case may be, under section 11, shall be calculated as if his salary or wage were 2 [three thousand and five hundred rupees] per mensem.] 3[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.] In the case of a factory which works seasonally during an accounting year, “working days in any accounting year” can only mean those days of the year during which the employee concerned is actually allowed to work; Sakhkkar Mills Mazdoor Sangh v. Gwalior Sugar Co. Ltd., AIR 1985 SC 758.