KNOWLEDGE BLOG ON "INDIAN LABOUR LAW AND HUMAN RESOURCE" - ADVOCATE GIRISH JAYRAM VIVALKAR: 05/26/15

Tuesday 26 May 2015

Time limit for payment of bonus under Payment of Bonus Act, 1965

Most of employer has the question about “what is the time limit for payment of bonus to its employee under the Payment of Bonus Act, 1965”.

To answer this by taking reference of the section 19 of Payment of Bonus Act, 1965, which states that all amounts payable to an employee by way of bonus are to be paid:

1) Where there is dispute regarding payment of bonus pending before an authority under the Industrial Dispute Act, 1947 within one month from the date on which the award becomes enforceable or settlement comes into operation, in respect of such dispute; and

2) In all other cases within 8 months from the close of the accounting year.

Hope this small write up will give insight about pertained subject.

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Advance resignation of employee at the time of recruitment

This is bit odd question that “can resignation obtained from an employee at the time of said employee’s recruitment be used against him at later date?”

Being as one of the different question altogether, it can answer that such advance resignation before at the time of recruitment in the eyes of law are no resignation.

This is because the resignation was not voluntarily given by the employee but it was obtained by employer. Therefore the resignation without wish and will is no resignation at all.

Moreover, the resignation was obtained at a time when the employee was yet to commence his contract of employment. Therefore resignation prior to employment is also no resignation.

Besides, even assuming such resignation at later date falsely used by an employer stating that such resignation was given by the employee on a date from which his services were otherwise terminated or he was removed from services, such document is never considered as conclusive proof of resignation.