Dear All Seniors,
I am working in a new company for a service contract agreement with 2 years from 2 July 2014 to still now. As I have already completed my 1 year, So am I eligible for the last year Bonus? As this company incorporation on December 2013. So, is there any policy that they can avoid to pay the Bonus to the employees. Please suggest.
Thanking You
Raju
From India, Bangalore
1I am working in a new company for a service contract agreement with 2 years from 2 July 2014 to still now. As I have already completed my 1 year, So am I eligible for the last year Bonus? As this company incorporation on December 2013. So, is there any policy that they can avoid to pay the Bonus to the employees. Please suggest.
Thanking You
Raju
From India, Bangalore
Dear Sh Raju,
The Payment of Bonus Act,1965 has given relief to the newly formed comanies under Section16 from paying bonus to their employees, which is as under:-
(1) Where an establishment is newly set up, whether before or after the commencement of this Act, the employees of such establishment shall be entitled to be paid bonus under this Act if the company during the first five accounting years following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, bonus shall be payable only in respect of the accounting year in which the employer derives profit from such establishment and such bonus shall be calculated in accordance with the provisions of this Act without applying the formula of Set on and set off of allocble surplus as given under Section 15 of the Act.
You are therefore advised to check from the available sources as to whether the company has started earning profits from their business or not.
BS Kalsi
From India, Mumbai
The Payment of Bonus Act,1965 has given relief to the newly formed comanies under Section16 from paying bonus to their employees, which is as under:-
(1) Where an establishment is newly set up, whether before or after the commencement of this Act, the employees of such establishment shall be entitled to be paid bonus under this Act if the company during the first five accounting years following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, bonus shall be payable only in respect of the accounting year in which the employer derives profit from such establishment and such bonus shall be calculated in accordance with the provisions of this Act without applying the formula of Set on and set off of allocble surplus as given under Section 15 of the Act.
You are therefore advised to check from the available sources as to whether the company has started earning profits from their business or not.
BS Kalsi
From India, Mumbai
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