Definitions - Payment of Bonus Act(1965), Industrial Laws | Industrial Laws - B Com PDF Download

Definitions

(1) Accounting year [(Section 2(1)]

Accounting year means

(i) in relation to a corporation, the year ending on the day on which the books and accounts of thecorporation are to be closed and balanced.

(ii) in relation to a company, the period in respect of which any profit and loss account of the company laid before it inannual general meeting is made up, whether that period is a year or not;

(iii) in any other case —

(a) the year commencing on the 1st day of April; or

(b) if the accounts of an establishment maintained by the employer thereof are closed and balanced on any day otherthan the 31st day of March, then, at the option of the employer, the year ending on the day on which its accounts are so closed and balanced.Provided that an option once exercised by the employer under paragraph (b) of this sub-clause shallnot again be exercised except with the previous permission in writing of the prescribed authority and upon suchconditions as that authority may think fit.

(2) Allocable surplus [(Section 2(4)]

Allocable surplus means—

(a) in relation to an employer, being a company(other than a banking company) which has not made thearrangements prescribed under the Income-tax Act for the declaration and payment within India of the dividendspayable out of its profits in accordance with the provisions of section 194 of that Act, sixty-seven per cent of theavailable surplus in an accounting; year;

(b) in any other case, sixty percent of such available surplus;

(3) Appropriate Government [(Section 2(5)]

Appropriate Government means—

(i) in relation to an establishment in respect of which the appropriate Government under the IndustrialDisputes Act, 1947 is the Central Government, the Central Government;

(ii) in relation to any other establishment, the Government of the State in which that other establishment is situated.

(4) Available surplus [(Section 2(6)]

Available Surplus means the available surplus computed under section 5.

(5) Award [(Section 2(7)]

“Award” means an interim or a final determination of any industrial dispute or of any question relating thereto by anyLabour Court, Industrial Tribunal or National Tribunal constituted under the Industrial Disputes Act, 1947 or by anyother authority constituted under any corresponding law relating to investigation and settlement of industrial disputes inforce in a State and includes an arbitration award made under section 10A of that Act or under that law.

(6) Company [(Section 2(9)]

“Company” means any company as defined is section 3 of the Companies Act, 1956 and includes a foreign companywithin the meaning of section 591 of that Act.

(7) Corporation [(Section 2(11)]

“Corporation” means any body corporate established by or under any Central, Provincial or State Act butdoes not include a company or a co-operative society.

(8) Employee [(Section 2(13)]

“Employee” means any person (other than an apprentice) employed on a salary or wage not exceeding [threethousand and five hundred rupees] per month in any industry to do any skilled or unskilled manual, supervisory,managerial, administrative, technical or clerical work for hire or reward, whether the terms of employment be expressor implied.

(9) Employer [(Section 2(14)]

“Employer includes—

(i) in relation to an establishment which is a factory, the owner or occupier of the factory, including theagent of such owner or occupier, the legal representative of a deceased owner or occupier and where a personhas been named as a manager ofthe factory under clause (f) of sub-section (1) of section 7 of the FactoriesAct,1948, the person so named; and

(ii) in relation to any other establishment, the person who, or the authority which, has the ultimate control over theaffairs of the establishment and where the said affairs are entrusted to a manager, managing director or managing agent,such manager, managing director or managing agent.

(10) Establishment in the Private Sector [(Section 2(15)]

“Establishment in private sector” means any establishment other than an establishment in public sector.

(11) Establishment in the public Sector [(Section 2(16)]

“Establishment in public sector” means an establishment owned, controlled or managed by—

(a) a Government company as defined in section 617 of the Companies Act, 1956 ; (b) a corporation in which notless than forty per cent of its capital is held (whether

^{singly or taken together) by—}

(i) the Government; or

(ii) the Reserve Bank of India; or

(iii) a corporation owned by the Government or the Reserve Bank of India.

(12) Salary or Wage [(Section 2(21)]

“Salary or Wage” means all remuneration (other than remuneration in respect of over- time work) capable of beingexpressed in terms of money, which would, if the terms of employment, express or implied, were fulfilled, be payable toan employee in respect of his employment or of work done in such employment and includes dearness allowance (that is tosay, all cash payments, by whatever name called, paid to an employee on account of a rise in the cost of living), but doesnot include-

(i) any other allowance which the employee is for the time being entitled to;

(ii) the value of any house accommodation or supply of light, water, medical attendance or otheramenity or of any service or of any concessional supply of food grains or other articles;

(iii) any traveling concession;

(iv) any bonus (including incentive, production and attendance bonus);

(v) any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the employee under any law for the time being in force;

(vi) any retrenchment compensation or any gratuity or other retirement benefit payable to the employeeor any ex-gratia payment made to him;

(vii) any commission payable to the employee.

Where an employee is given in lieu of the whole or part of the salary or wage payable to him, free food allowance or freefood by his employer, such food allowance or the value of such food shall, for the purpose of this clause, be deemed tofrom part of the salary or wage of such employee.

(13) Establishments [(Section 3)]

Where an establishment consists of different department or undertakings or has branches, whethersituated in the same place or in different places, all; such departments or undertakings or branches shall betreated as parts of the same establishment for the purpose of computation of bonus under this Act.Providedthat where for any accounting year a separate balance-sheet and profit and loss account are prepared and maintained inrespect of any such department or undertaking or branch, then such department or undertaking or branch shall betreated as a separate establishment for the purpose of computation of bonus, under this Act for that year, unless suchdepartment or undertaking or branch was, immediately before the commencement of that accounting year treated as partof the establishment for the purpose of computation of bonus.