Dear Seniors
This is to inform that, ours is a 8years old factory and recently we have started another unit. My doubt is whether the new unit is applicable for bonus or not?
Please clarify??
Regards
Ram
From India, Hyderabad
5This is to inform that, ours is a 8years old factory and recently we have started another unit. My doubt is whether the new unit is applicable for bonus or not?
Please clarify??
Regards
Ram
From India, Hyderabad
Hi jalluriram,
Please refer the Bonus Act. Here I mentioned some Important details for your reference.
Applicability of Act :
Every factory where in 10 or more persons are employed with the aid of power or An establishment in which 20 or more persons are employed without the aid of power on any day during an accounting year.
Establishment :
Establishment includes Departments, undertakings and branches.
Regards,
Hardik
From India, Ahmadabad
Please refer the Bonus Act. Here I mentioned some Important details for your reference.
Applicability of Act :
Every factory where in 10 or more persons are employed with the aid of power or An establishment in which 20 or more persons are employed without the aid of power on any day during an accounting year.
Establishment :
Establishment includes Departments, undertakings and branches.
Regards,
Hardik
From India, Ahmadabad
Dear Suneeta & Hardik Thank you for reply and our 2nd unit not yet commenced the commercial production. Then also employees eligible for bonus?? Thanks & Regards Ram
From India, Hyderabad
From India, Hyderabad
This depends on whether you have separate balance sheet and profit and loss account for the second plant. The second factory will be covered under payment of bonus act, no doubt. But if you have separate accounts for it, then for 5 years it will be exempt from bonus if the plant is not making money.
From India, Mumbai
From India, Mumbai
A new establishment enjoys exemption from the Bonus Act under Sec.16A if it has sepearte balance sheet but not common balance sheet with the parent company and also does not make profit in the first five accounting years. That is the key to decide teh applicability of bonus act to new establshment..
B.Saikumar
HR & labour Law advsior
Mumbai
From India, Mumbai
B.Saikumar
HR & labour Law advsior
Mumbai
From India, Mumbai
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Bonus eligibility.xls
Amendment to Payment of Bonus Act 2015.jpg
Bonus act amendment gazette copy.pdf