| Payment of Bonus Act, 1965 |
| Short Title, Extent and Application |
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This act may be called the Payment of Bonus Act, 1965. |
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It extents to the whole of India*. |
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Save as otherwise provided in this Act, it shall apply to - |
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Every factory, and |
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Every other establishment in which twenty or more persons are employed on any day during an accounting year. |
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[provided that the appropriate Government may, after giving not less than two months notice of his intention so to do, |
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by notification in the Official Gazzette,apply the provisions of this Act with effect from such accounting year as may be |
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specified in the notification, to any establishment or class of establishment [including an establishment being a factory |
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within the meaning of sub-clause (ii) of clause m of Section 2 of the Factory Act, 1948 (63 of 1948) employing such |
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number of persons less than twenty as may be specified in the notification; so however, that the number of persons so |
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specified shall in no case be less than ten.] |
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Save as otherwise provided in this Act, the provisions of this Act shall, in relation to a factory or other establishment to which |
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this Act applies, have effect in respect of the accounting year commencing on any day in the year 1964 and in respect of every |
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subsequent accounting year.
[provided that in relation to the State of Jammu and Kashmir, the reference to the accounting year |
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commencing on any day in the year 1964, and every subsequent accounting year shall be constructed as reference to the |
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accounting year commencing in any day in the year 1968 and every subsequent accounting year.] |
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[provided further that when the provisions of this Act have been made applicable to any establishment or class of establishment |
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by the issue of a notification under the provisio to sub-section (3), the reference to the accounting year commencing on any day |
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in the year 1964 and every subsequent accounting year or, as the case may be, the reference to the accounting year |
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commencing on any day in the year 1968 and every subsequent accounting year shall, in relation to such establishment or class |
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of establishments, be construed as a reference to the accounting year specified in such notification and every subsequent |
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accounting year.] |
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An establishment to which this Act applies shall continue to be governed by this Act notwithstanding that the number of persons |
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employed therein falls below twenty [or, as the case may be,] the number specified in the notification issued under the provision |
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to sub-section(3)]. |
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| Introduction |
| The law relating to payment of bonus is governed by the following legislations :- |
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Payment of bonus Act, 1965. |
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Payment of Bonus Rules, 1975. |
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| Objective of the Act |
| The objective of the Act is to provide for the payment of bonus to persons employed in certain establishments on the basis of profits |
| or on the basis of productivity and for matters connected therewith. |
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| Applicability of the Act |
| The act shall apply to every factory and every other establishment in which twenty or more persons are employed on any day |
| during the accounting year. The appropriate Government may, by giving a notice of not less than two months and by notification in |
| the Official Gazette, extend the applicability of the Act to any other establishment (s) employing more than 10 person and less than |
| 20 persons. The establishment which has been covered under the Act shall continue to be governed by the Act, even though the |
| number of persons employed therein falls below the prescribed limit of 20 or the number specified in the notification, as the case |
| may be. |
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| Obligations of the Employer |
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Payment of Bonus |
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Special Provisions in case of new units |
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Reference of disputes |
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Maintenance of registers and records |
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Annual Return |
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Claim for non-payment of bonus |
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| Offences & Penalties |
| If any person : - |
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Contravenes any of the provisions of this act or any rule made there under, or |
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to whom a direction is given or a requisition is made under this Act fails to comply with the direction or requisition. |
| He shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one |
| thousand rupees, or with both. |
