Dear Experts,
One MNC company is covered under Bonus Act, and paid the Bonus up to 2010-11(with ex-gratia for more than cealing limited employees),due to sever losses the company is merged with another MNC without distrubing the employees. Now for the financial year 2011-12 the current MNC company not willing to pay the Bonus the reason to say "losses". Is it justifiable ? Even if they not paying minimum Bonus.
Regards,
PBS KUMAR
From India, Kakinada
590One MNC company is covered under Bonus Act, and paid the Bonus up to 2010-11(with ex-gratia for more than cealing limited employees),due to sever losses the company is merged with another MNC without distrubing the employees. Now for the financial year 2011-12 the current MNC company not willing to pay the Bonus the reason to say "losses". Is it justifiable ? Even if they not paying minimum Bonus.
Regards,
PBS KUMAR
From India, Kakinada
Dear Sir,
Although i am not an expert, still daring to put forward my views on this..
as per bonus act, whether or not the company makes profit, once bonus act is applicable, the company has to pay at least the minimum bonus....and for this reason only the concept of set-on and set off is mentioned in the bonus act.......
So, non payment of bonus on the ground that the company is bearing loses is not justifiable.....
From India, Asansol
Although i am not an expert, still daring to put forward my views on this..
as per bonus act, whether or not the company makes profit, once bonus act is applicable, the company has to pay at least the minimum bonus....and for this reason only the concept of set-on and set off is mentioned in the bonus act.......
So, non payment of bonus on the ground that the company is bearing loses is not justifiable.....
From India, Asansol
Hi Friends
The new company which has acquired the old company may show as new company and they can get exemption from not paying bonus for next 3 years.
I have seen one company done that.
Regards
Karthik
From India, Vijayawada
The new company which has acquired the old company may show as new company and they can get exemption from not paying bonus for next 3 years.
I have seen one company done that.
Regards
Karthik
From India, Vijayawada
dear karthik, Can a company acquiring a new company loses its own identity and can claim to be altogether a new company? I think ,its not possible....
From India, Asansol
From India, Asansol
Hi
When an acquisition happens the new company is liable to bear all costs and they have to take provision for all statutory benefits like Bonus, Gratuity etc. The Employee he may be old company employee but he should not loose his experience. The new company is liable to pay bonus and even they have to pay Gratuity.
At the time of costing itself they will take all these provisions. But as a company they will have legal advisors to exclude all these and they will do it out of redcords.
Regards
Karthik
From India, Vijayawada
When an acquisition happens the new company is liable to bear all costs and they have to take provision for all statutory benefits like Bonus, Gratuity etc. The Employee he may be old company employee but he should not loose his experience. The new company is liable to pay bonus and even they have to pay Gratuity.
At the time of costing itself they will take all these provisions. But as a company they will have legal advisors to exclude all these and they will do it out of redcords.
Regards
Karthik
From India, Vijayawada
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