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Asked by namish on :Aug. 03, 2018

Can a company deny to pay bonus to its employees …

Can a company deny to pay bonus to its employees for the first five years of its incorporation?

Can a company deny to pay bonus to its employees for the first five years of its incorporation?

0

Jeeba Aug. 03, 2018

Yes.
The law provides a relief for the new establishment if it is in its baby stage of fewer than five years.

The act states that a new establishment up to the first five years of its incorporation may not pay a bonus if it does not have any allocable surplus to pay bonus.

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