Dear all, She took 4 months maternity leave and get 3 months salary in ESIC office. We are not calculated bonus for the above 4 months. She getting bonus for remaining 8month salary. Now she is asking the bonus for 4 months maternity leave also. Pl. give answer, whether she is eligible or not? If yes, refer the act.
Regards,
Ramesh
Manager - HR & SEC
From India, Coimbatore
1Regards,
Ramesh
Manager - HR & SEC
From India, Coimbatore
Dear Mr. Ramesh, As per the Payment of Bonus Act 1965, Section 14 (d), if she is on maternity leave with salary or wage, she will be eligible for bonus on those those days also.
From India, Madras
From India, Madras
Dear Ramesh,
I respectfully differ with the view of vigsysjesu. If an employee is a contributory to the ESI Scheme, then during maternity leave she gets maternity benefit from the ESIC and no salary or wages are payable to her by the employer. Therefore, she is not covered under section 14(d) of Payment of Bonus Act, 1965. Please also read the provisions of section 10 according to which the bonus is payable on the "salary or wage earned by the employee". In this case she does not earn any salary or wages.
Best wishes
jpratap
From India, Chandigarh
I respectfully differ with the view of vigsysjesu. If an employee is a contributory to the ESI Scheme, then during maternity leave she gets maternity benefit from the ESIC and no salary or wages are payable to her by the employer. Therefore, she is not covered under section 14(d) of Payment of Bonus Act, 1965. Please also read the provisions of section 10 according to which the bonus is payable on the "salary or wage earned by the employee". In this case she does not earn any salary or wages.
Best wishes
jpratap
From India, Chandigarh
Mr. Jpratap,
The aim of establishement of ESI is for the social security of an employee.
Even if the employee is covered under ESIC, his/her principal employer is the company. ESIC will not give bonus for those period. So its the duty of the employer to include the maternity days (Paid & eligible days) wages also for the calculation of Bonus.
From India, Madras
The aim of establishement of ESI is for the social security of an employee.
Even if the employee is covered under ESIC, his/her principal employer is the company. ESIC will not give bonus for those period. So its the duty of the employer to include the maternity days (Paid & eligible days) wages also for the calculation of Bonus.
From India, Madras
Dear Vigsysjesu,
A statement of objects and reasons is always there on a statute book. But in case of difference of opinion regarding any provision of law, what is the touch stone? Either it is the Act itself or an interpretation given by a High Court of Supreme Court. You say that it is the duty of an employer to pay bonus. Who imposes this duty on employer. It is an Act or the Rules which impose obligations on an employer. An employer may pay any thing to an employee even if he has no obligation to pay the same under any law. I have not challenged his right to pay but I have merely brought the legal position to the notice of the members of this forum in this regard.
Best wishes
jpratap
From India, Chandigarh
A statement of objects and reasons is always there on a statute book. But in case of difference of opinion regarding any provision of law, what is the touch stone? Either it is the Act itself or an interpretation given by a High Court of Supreme Court. You say that it is the duty of an employer to pay bonus. Who imposes this duty on employer. It is an Act or the Rules which impose obligations on an employer. An employer may pay any thing to an employee even if he has no obligation to pay the same under any law. I have not challenged his right to pay but I have merely brought the legal position to the notice of the members of this forum in this regard.
Best wishes
jpratap
From India, Chandigarh
Dear Vigsysjesu, You are absolutely right. Bonus is calculated on the basis of actual wages earned/paid during the financial year.
If an employee has been on Maternity Leave under ESI and has been paid Maternity benefit by the ESI and wages for the said period have NOT been paid by the employer, then Bonus is NOT payable for such period.
Trust this is clear.
Best Wises & Happy, Safe & Pollution free Diwali,
Vasant Nair
From India, Mumbai
If an employee has been on Maternity Leave under ESI and has been paid Maternity benefit by the ESI and wages for the said period have NOT been paid by the employer, then Bonus is NOT payable for such period.
Trust this is clear.
Best Wises & Happy, Safe & Pollution free Diwali,
Vasant Nair
From India, Mumbai
Dear Mr. Nair, The views expressed by you are not the views of Mr. Vigsysjesy but are mine. He holds contrary views. Kindly see his post of yesterday. jpratap
From India, Chandigarh
From India, Chandigarh
I agree with your view. Being on Maternity leave; unlike a leave of absence without pay; does not make the beneficiary ineligible for statutory bonus. Warm regards.
From India, Delhi
From India, Delhi
Dear all!!!!! 1.Section 14(d) makes it asmply clear that maternity leave with salary or wage is to be computed as working days.
2. Section 13 of the Act states that proportionate deduction can be made from bonus payable for the days not actually worked. Since maternity leave period is included in the days worked, it cannot be treated as days not worked.
3. Section 10/11 states that bonus is payable as a percentage of salary/wages earned by the employee.
4. Section 2(21) defines salary/wages as all remuneration payable to the employee as per terms of employment. Section 5 of the Maternity Benefit Act 1961 stipulates that employer shall be liable for payment of maternity benefit. Maternity benefit is defintely a term of employment and hence would be a part of wages.
5. In case ESI pays maternity benefit, that will not exclude the employer the liability for payment of Bonus. ESI is a social security sceheme, whereby an agency is created to fulfill the need for providing services needed to the employed workmen as provided therein. Hence the maternity benefit provided by the ESI is to be reckoned for bonus purposes.
Hope this clarifies the whole issue.
Regards
KK
From India, Bhopal
2. Section 13 of the Act states that proportionate deduction can be made from bonus payable for the days not actually worked. Since maternity leave period is included in the days worked, it cannot be treated as days not worked.
3. Section 10/11 states that bonus is payable as a percentage of salary/wages earned by the employee.
4. Section 2(21) defines salary/wages as all remuneration payable to the employee as per terms of employment. Section 5 of the Maternity Benefit Act 1961 stipulates that employer shall be liable for payment of maternity benefit. Maternity benefit is defintely a term of employment and hence would be a part of wages.
5. In case ESI pays maternity benefit, that will not exclude the employer the liability for payment of Bonus. ESI is a social security sceheme, whereby an agency is created to fulfill the need for providing services needed to the employed workmen as provided therein. Hence the maternity benefit provided by the ESI is to be reckoned for bonus purposes.
Hope this clarifies the whole issue.
Regards
KK
From India, Bhopal
Being on maternity leave, it is the responsibility of the Employer to pay during that period. But since the Employer has opted/covered under ESI, his liability is being met through ESI on behalf of the employer.
So Employer has to treat the employee on a paid maternity leave and also treat as if the employer has paid during the leave.
So bonus is payable on the salary or wages as if they were earned at the normal rate, had the employee not proceeded on the maternity leave.
From India, Chandigarh
So Employer has to treat the employee on a paid maternity leave and also treat as if the employer has paid during the leave.
So bonus is payable on the salary or wages as if they were earned at the normal rate, had the employee not proceeded on the maternity leave.
From India, Chandigarh
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