Dear All Seniors,
I have some problems which are most important for me. First is related to overtime, and second is related to a bonus. Regarding overtime, my question is how to calculate the overtime for the 26th day of any month. Please provide me with the government order regarding this.
In terms of the bonus, my question is this: if a company paid a bonus to its employees last year and is not currently making a profit, is the company not liable to pay a bonus for this year?
This matter is urgent. Please, Malik Sir, provide me with guidelines regarding both issues.
From India, Rudarpur
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81I have some problems which are most important for me. First is related to overtime, and second is related to a bonus. Regarding overtime, my question is how to calculate the overtime for the 26th day of any month. Please provide me with the government order regarding this.
In terms of the bonus, my question is this: if a company paid a bonus to its employees last year and is not currently making a profit, is the company not liable to pay a bonus for this year?
This matter is urgent. Please, Malik Sir, provide me with guidelines regarding both issues.
From India, Rudarpur
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Overtime can be calculated based on the average salary per hour, which can be determined by dividing the monthly salary by 30 or by 26. There is no specific guideline regarding this calculation as in the case of gratuity calculation. In a recent case (Management of Tansi Ltd Vs Presiding Officer, Labour Court), the Madras High Court has ruled that for retrenchment and purposes other than gratuity calculation, the concept of 26 as a divisor is not applicable. The term "other purposes" implies that unless otherwise specified, overtime should be calculated using the daily/hourly rate of salary derived after dividing the monthly salary by 30, not by 26. However, if the certified standing orders of the company permit, you may use 26 as the divisor.
Since the infancy protection period is over, the company must provide a minimum statutory bonus of 8.33%, even if it is operating at a loss, as the bonus is considered deferred salary.
Regards,
Madhu.T.K
From India, Kannur
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Since the infancy protection period is over, the company must provide a minimum statutory bonus of 8.33%, even if it is operating at a loss, as the bonus is considered deferred salary.
Regards,
Madhu.T.K
From India, Kannur
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