Hi guys! i would like to know if a company is legible to pay bonus if it is a new company (6 months in operation). what are the rules for the same? thanks
From India, Mumbai
From India, Mumbai
hiiii
No new Company will be Liable to pay any bonus upto 5 years due to its infancy period,, bt if it is a branch or sister concern of another unit which is working for more than 5 years then the company is liable to pay bonus according to act. but however if the new unit maintains its new and seperate balance sheet then again it is not liable to pay any bonus.
From India, Lucknow
3No new Company will be Liable to pay any bonus upto 5 years due to its infancy period,, bt if it is a branch or sister concern of another unit which is working for more than 5 years then the company is liable to pay bonus according to act. but however if the new unit maintains its new and seperate balance sheet then again it is not liable to pay any bonus.
From India, Lucknow
good answer.
though you are not liable it is considered good practice to issue ex gratia amount as festival bonus to keep up the morale and build good atmosphere and expectation from the employee.
Once you begin ex gratia though you may not be able to withdraw it, so ensure that the amount is practical with respect to expense and useful in keeping with expectation.
best
Joseph
From India, Kochi
though you are not liable it is considered good practice to issue ex gratia amount as festival bonus to keep up the morale and build good atmosphere and expectation from the employee.
Once you begin ex gratia though you may not be able to withdraw it, so ensure that the amount is practical with respect to expense and useful in keeping with expectation.
best
Joseph
From India, Kochi
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Bonus act amendment gazette copy.pdf
THE PAYMENT OF BONUS ACT.doc