Full News
BONUS
Tutorial 1: Applicability of Payment of Bonus Act, 1965
Tutorial 1: Applicability of Payment of Bonus Act, 1965
The Payment of Bonus Act(POBA) was enacted to impose statutory obligation on the employer to pay certain amount of bonus to those employees who falls within a specified category. If the employer will share certain amount of surplus with its employees, it will ensure peace and harmony between the employer and the employee. To know whether provisions of the Act are applicable to your entity, continue reading under details section.
The Payment of Bonus Act applies to the following entities:
1) Every Factory
2) Any Establishment which employees minimum number of 20 persons. It must be noted that once number of employees are 20 i.e., once the provisions o the Act becomes applicable, it will continue to apply even if number of employees falls below 20.
3) Any Establishment employing less than 20 but not less than 10 in number, provided the Act is made applicable by the Government by way of notification in the Official Gazette.
Thus if the entity falls within any of the above 3 categories, the provisions of the Act will become applicable. But wait, are there any exemptions to it. Yes, but for that wait for the next tutorial.
