Dear All, As per Section 36 of Payment of Bonus Act, 1965
36. Power of exemption.- If the appropriate Government, having regard to the financial position and other relevant circumstances of any establishment or class of establishments, is of opinion that it will not be in the public interest to apply all or any of the provisions of this Act thereto, it may, by notification in the Official Gazette, exempt for such period as may be specified therein and subject to such conditions as it may think fit to impose, such establishment or class of establishments from all or any of the provisions of this Act.
Whether any Company having no allocable surplus can seek exemption from payment of minimum Bonus for the year 19-20?
Reasons: Huge losses owing to Pandemic
Has anyone applied seeking exemption of payment of Bonus? Whether it will be given? Please also share the process involved.
Please share your experiences.
From India, Bengaluru
336. Power of exemption.- If the appropriate Government, having regard to the financial position and other relevant circumstances of any establishment or class of establishments, is of opinion that it will not be in the public interest to apply all or any of the provisions of this Act thereto, it may, by notification in the Official Gazette, exempt for such period as may be specified therein and subject to such conditions as it may think fit to impose, such establishment or class of establishments from all or any of the provisions of this Act.
Whether any Company having no allocable surplus can seek exemption from payment of minimum Bonus for the year 19-20?
Reasons: Huge losses owing to Pandemic
Has anyone applied seeking exemption of payment of Bonus? Whether it will be given? Please also share the process involved.
Please share your experiences.
From India, Bengaluru
Payment of minimum bonus is a statutory requirement. Having no allocable amount is not a reason sufficient enough to escape the liability of Bonus. As against 'set on' there is also 'set off' to provide just enough funds from future years to meet the current liability. Trying to get exemption as per Section 36 of the Payment of Bonus Act 1965 stands a better chance for the year 2020-21 rather than 2019-20 since pandemic can be said to have adversely affected only in the second fortnight of March 2020.
From India, Mumbai
From India, Mumbai
Find answers from people who have previously dealt with business and work issues similar to yours - Please Register and Log In to CiteHR and post your query.
Company Profile.ppt
Company Profile Letter - Global Risk Management Services.pdf