Respected Madhu ji,
If I am paying a bonus to all the employees, including those who are not covered under the Payment of Bonus Act for years together, can I stop it? Is it not a practice that became law?
Hope the members will get more insights from your answer to the above questions.
From India, Mumbai
2636If I am paying a bonus to all the employees, including those who are not covered under the Payment of Bonus Act for years together, can I stop it? Is it not a practice that became law?
Hope the members will get more insights from your answer to the above questions.
From India, Mumbai
Practice becomes law but for workers and not for supervisors and managers who are controlled by the contract of employment and not by law Madhu.T.K
From India, Kannur
From India, Kannur
Respected Madhu ji, With due respect to you Sir, I tend to disagree with you. However, I expect some other learned members to comment on it. I may be wrong in disagreement.
From India, Mumbai
From India, Mumbai
Dear Madhu ji,
I am not in favor of discrimination between workers and supervisors and managers, who are controlled by the contract of employment and not by law. Your contention may be true from the point of view of legislation, but in the larger interest of the organization, an employer would be foolish to make such a distinction. I have observed that it is customary for employers to disburse the Puja bonus to all their employees regardless of their categories or positions in the state of West Bengal. Even the Supreme Court has often encouraged such customary practices but has set certain criteria in their judgments in cases such as (1) M/s. Ispahani Limited v Ispahani Employees' Union; (2) Grahams Trading Company (India) Limited v Their Workmen; (3) M/s. Tulsi Das Khimji v Their Workmen; and (4) Vegetable Products Limited v Their Workmen. The court has held that in order to establish a claim for a customary bonus, traditional bonus, or Puja bonus, four conditions must be fulfilled, namely:
(i) that the payment has been made over an unbroken series of years; (ii) that it has been made for a sufficiently long period; (iii) that the payment has been made at a uniform rate throughout; and (iv) lastly, that it has been paid even in years of loss and did not depend on the earning of profits.
BS Kalsi
Member since Aug 2011
From India, Mumbai
I am not in favor of discrimination between workers and supervisors and managers, who are controlled by the contract of employment and not by law. Your contention may be true from the point of view of legislation, but in the larger interest of the organization, an employer would be foolish to make such a distinction. I have observed that it is customary for employers to disburse the Puja bonus to all their employees regardless of their categories or positions in the state of West Bengal. Even the Supreme Court has often encouraged such customary practices but has set certain criteria in their judgments in cases such as (1) M/s. Ispahani Limited v Ispahani Employees' Union; (2) Grahams Trading Company (India) Limited v Their Workmen; (3) M/s. Tulsi Das Khimji v Their Workmen; and (4) Vegetable Products Limited v Their Workmen. The court has held that in order to establish a claim for a customary bonus, traditional bonus, or Puja bonus, four conditions must be fulfilled, namely:
(i) that the payment has been made over an unbroken series of years; (ii) that it has been made for a sufficiently long period; (iii) that the payment has been made at a uniform rate throughout; and (iv) lastly, that it has been paid even in years of loss and did not depend on the earning of profits.
BS Kalsi
Member since Aug 2011
From India, Mumbai
I am also of the opinion that everyone should get a bonus at a uniform rate. But at the same time, I also support the idea that workers who earn lesser amounts of salary should be given their "deferred wages," which is not the case for supervisors and managers who receive higher salaries and other benefits. If non-workers are paid a bonus, it should be to retain them in the company and should not be viewed as deferred wages.
Madhu.T.K
From India, Kannur
Madhu.T.K
From India, Kannur
My disagreement with Respectable Madhu ji is on, can one stop the long standing practice of paying the bonus to those who are not entitled to it under the law? We need to review on this subject.
From India, Mumbai
From India, Mumbai
Dear Madhu Sir & Korgaonkar Sir,
It's always a pleasure reading your commentaries. You both are doing a great service of legal awareness and literacy out of your busy schedules. The value I have derived in the past is immeasurable, and I must thank you for this.
Happy blogging!
From India, Aurangabad
It's always a pleasure reading your commentaries. You both are doing a great service of legal awareness and literacy out of your busy schedules. The value I have derived in the past is immeasurable, and I must thank you for this.
Happy blogging!
From India, Aurangabad
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