Friday, November 16, 2007

Bonus Act_Practical Problems_19

Sri Bholanath, an employee of Newtele Ltd. destroyed some electronic machines in the company premises after taking alcoholic with his friends in the company premises. He was found guilty and punished under the industrial Disputes Act, 1947. The Company loose huge amount due to break down of the machines. When the company paid bonus in that year to its employees it deducted the amount from the bonus payable to Sri Bholanath and he did not get any bonus in that year. Did the company violate any provisions of the Payment of Bonus Act, 1965 in not paying bonus to Sri Bholanath?


harish said...

I think the company can only deduct the money at the time of retirement on ESI and PF payable but not in bonus since the main objective of Bonus Act is to make employee happy by paying him more money.

If Iam wrong please correct me by mailing the answerto

harish said...

Sorry Iam wrong
One of the main disqualifications of bonus is the employer may not pay if he has lost any asset due to employee misconduct.So the company did not violate the provisions of Bonus Act as there was huge lose due to Bholanath misconduct.

angel said...

As per section 18 of the payment of bonus act,1965 he is liable to the company for causing loss to the organisation because of his misbehaviour and hence his bonus can be deducted for the loss he made. the balance money can be paid.