SRAO123
Whether a rainee is eligible for Bonus under PB Act !!
From India, Pune
RSUDHAKAR
7

Hi
A trainee is not a employee as per management views , hence they will not be eligible for bonus, to keep the trainess in good morale, mostly the management uses to provide ex-gratia according to the companys financial position
As a matter of right trainees are not eligible for Bonus
Regards
R.Sudhakar

From India
roshansiddamsetty
sudhakar, could yu give me some authority on which to base what yuv said about trainees not being eligible for bonus...i need it asap please. thank you..

Madhu.T.K
4249

By virtue of section 2(13) of the Payment of Bonus Act, 1965, an apprentice is not an employee and as such an apprentice is not eligible for any kind of profit sharing bonus or incentive (section 13(2) of the Apprentice Act, 1961).Similarly, as per Apprentice Act, section 18, the provisions of any labour law will not apply to apprentices. BUT, inorder to be exempted from these, the trainee should have been hired for training following the provisions of Apprentice Act, 1961. As such an employer is supposed to take trainees in designated trades only and that also from the panel of ex ITIs given for this purpose and after entering in to a contract of training with the trainee/ guardian. The period of training will be strictly limited to one year. All others will be regarded as employees, by what ever name designated.
Regards,
Madhu.T.K

From India, Kannur
ASHOK KUMAR SHARMA
3

hi
ONLY APPRENTICE TRAINEE IS NOT ELIGIBLE FOR BONUS OTHERWISE OTHER TRAINEE ,WHO ARE NOT APPOINTED UNDER APPRENTICE ACT 1961 , ARE FULLY ENTITLED FOR BONUS AND THERE IS NO SPECIFIC CLAUSE IN THE BONUS ACT THAT TRAINEE IS NOT ENTITLED FOR BONUS. KINDLY CLEAR IT WHETHER OTHER TRAINEE ,WHO ARE NOT APPOINTED UNDER APPRENTICE ACT 1961,ARE ENTITLED FOR BONUS OR NOT IF NOT THAN PLEASE BRIEF US WHICH CLAUSE OF BONUS ACT
SHALL APPLY ON THIS PARTICULAR POINT. bECUASE FEW ORGANISATIONS ARE APPOINTED FRESHER DEGREE/DIPLOMA HOLDERS OF ENGINEERING AS A TRAINEE AND PUT THEM ON TRAINEE FOR A DURATION OF SIC MONTHS THAN WHAT FORMULA WILL BE ADOPTED UNDER THE BONUS ACT.
ASHOK KUMAR

From India, Delhi
Madhu.T.K
4249

Bonus is infact regarded as DEFERRED wages. But at the same time, with the exception of minimum bonus of 8.33%, it is payable out of allocable surplus which is nothing but net profit arrived at after some calculations as provided in schedules attached to the Bonus Act. Section 13 clearly mention who is an employee and under this section employee means 'any person other than an apprentice'. Therefore, an apprentice trainee is not an employee and hence need not take part in bonus sharing. Under Apprentice Act, 1961, apprentices are not to expected to take part in any bonus. When viewed from ESI Act and ID Act also Trainees are not to be clubbed to employees. A recent Supreme Court judgment in favour of Campco, rejecting the order of Provident Fund organisation has pointed out that all trainees ( even other than Apprentices) are to be excluded from EPF. Therefore, trainees are not entitled to get bonus as per any Act. However, any employer is free to grant any privilege to any worker including trainee. That is up to the employer. But always remember that privileges become right latter on and bonus once paid to trainees will become right on their part. This will be reflected in future negotiations also. Not only the negotiations of the same employer but it will affect the negotiations of others in the same industry or location.

Regards,

Madhu.T.K

From India, Kannur
sebuks
2

Dear Madhu Sir, Well said. Privileges once given becomes a right later. So one should think twice before giving any unwanted previlages. Regards, Sebuks
From India, Kochi
ASHOK KUMAR SHARMA
3

Dear Madhu
Kindly arrange to provide the judgement copy of Supreme Court wherein decided that Trainee can be excluded from the benefits of EPF becuase every time at the time of inspection the Enforcement Officer (PF) asked to deposit the PF Contribution on the wages/salry paid to trainee. So it would be very useful for us if you could provide the same.
Thanks.
ASHOK KUMAR

From India, Delhi
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