Hi All,
I'm working in a construction company. In CTC, the bonus component is included with 8.33% on the basic and wich will be paid annually after completion of 1 year.
Since the financial year is closing on 31st March, i have prepared the bonus statement as per the data from payroll data from apr'08 to march'09 and employees joined in the middle, bonus prepared on pro rata basis.
Now the management says they cant pay the bonus to the employees (which is part of the CTC) and refering the bonus act and asking us legal experts consultation on the bonus payment.
My queries are:
Is this comes under Bonus Act?
Im sure we need to pay the bonus. If not, on what ground, we cannot pay the bonus on the above case?
Please write your comments on this...
Regards
Hari Krishna
From India, Hyderabad
I'm working in a construction company. In CTC, the bonus component is included with 8.33% on the basic and wich will be paid annually after completion of 1 year.
Since the financial year is closing on 31st March, i have prepared the bonus statement as per the data from payroll data from apr'08 to march'09 and employees joined in the middle, bonus prepared on pro rata basis.
Now the management says they cant pay the bonus to the employees (which is part of the CTC) and refering the bonus act and asking us legal experts consultation on the bonus payment.
My queries are:
Is this comes under Bonus Act?
Im sure we need to pay the bonus. If not, on what ground, we cannot pay the bonus on the above case?
Please write your comments on this...
Regards
Hari Krishna
From India, Hyderabad
dear
there is no term like CTC ,We have only created this term,if basic is less than 10 k
than bonus payment has to be made.if baisic more than 10 k per month than you can not compel for bonus.
tks
js malik
From India, Delhi
167there is no term like CTC ,We have only created this term,if basic is less than 10 k
than bonus payment has to be made.if baisic more than 10 k per month than you can not compel for bonus.
tks
js malik
From India, Delhi
Dear Hari Krishna,
It is hereby clarified that earlier according to section 32(vi) of the Payment Of Bonus Act,1965 the employees employed through contractors on building operation were not covered under this Act resulting thereby they were not entitled to the benefits of this Act but now by the Act 45 of 2007 this clause has been omitted w.e.f. 01.04.2006. This means that the Building construction employees have become eligible to have bonus if the bonus is payable & announced by the employer for the accounting year from 2006-07 onwards. For more details please go through section 16 of this act.
If you have made clear in the CTC then also you should pay bonus as per the terms & conditions of employment. Pay bonus which ever is on higher side.
Submitted as requested.
Regards,
R.N.Khola
Sr.Associate
(Haryana)
From India, Delhi
It is hereby clarified that earlier according to section 32(vi) of the Payment Of Bonus Act,1965 the employees employed through contractors on building operation were not covered under this Act resulting thereby they were not entitled to the benefits of this Act but now by the Act 45 of 2007 this clause has been omitted w.e.f. 01.04.2006. This means that the Building construction employees have become eligible to have bonus if the bonus is payable & announced by the employer for the accounting year from 2006-07 onwards. For more details please go through section 16 of this act.
If you have made clear in the CTC then also you should pay bonus as per the terms & conditions of employment. Pay bonus which ever is on higher side.
Submitted as requested.
Regards,
R.N.Khola
Sr.Associate
(Haryana)
From India, Delhi
Dear Malik Ji.
My query is whether Payment of Bonus and Gratuity is applicable to the employees of Hotel satrted operations in March 2009 in Noida in UP. Hotel is owned by the Company having other business prior and started hotel unde the same company.
Regards
From India, Delhi
My query is whether Payment of Bonus and Gratuity is applicable to the employees of Hotel satrted operations in March 2009 in Noida in UP. Hotel is owned by the Company having other business prior and started hotel unde the same company.
Regards
From India, Delhi
dear if hotel is started with same name and balance sheet is same for hotel and other business than bonus act will definetly apply. tks j s malik
From India, Delhi
From India, Delhi
dear if hotel is started with same name and balance sheet is same for hotel and other business than bonus act will definetly apply. tks js malik
From India, Delhi
From India, Delhi
Dear Malik Ji
My query is that one Pvt. Ltd. Company started Hotel operations in March 2009 in Noida -UP.This is the first business of the company and they have Zero balance in their balance sheet. Is bonus and gratuty will apply on the employees joining the Hotel.If not what necessary steps Hotel should take to avoid implications, if any.
Regards
Akhil Chhabra
From India, Delhi
My query is that one Pvt. Ltd. Company started Hotel operations in March 2009 in Noida -UP.This is the first business of the company and they have Zero balance in their balance sheet. Is bonus and gratuty will apply on the employees joining the Hotel.If not what necessary steps Hotel should take to avoid implications, if any.
Regards
Akhil Chhabra
From India, Delhi
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