B Com Exam  >  B Com Notes  >  Industrial Laws  >  Time limit for payment of bonus - Payment of Bonus Act(1965), Industrial Laws

Time limit for payment of bonus - Payment of Bonus Act(1965), Industrial Laws | Industrial Laws - B Com PDF Download

All amounts payable to an employee by way of bonus under this Act shall be paid in cash by his employer —

(a) where there is a dispute regarding payment of bonus pending before any authority under section 22, within amonth from the date on which the award becomes enforceable or the settlement comes into operation, in respectof such dispute;

(b) in any other case, within a period of eight months from the close of the accounting year:Provided that theappropriate Government or such authority as the appropriateGovernment may specify in this behalf may, uponan application made to it by the employerand for sufficient reasons, by order, extended the said period of eight monthsto such further period or periods as it thinks fit; so, however, that the total period so extended shall not in any caseexceed two years.

The document Time limit for payment of bonus - Payment of Bonus Act(1965), Industrial Laws | Industrial Laws - B Com is a part of the B Com Course Industrial Laws.
All you need of B Com at this link: B Com
54 videos|46 docs|18 tests

FAQs on Time limit for payment of bonus - Payment of Bonus Act(1965), Industrial Laws - Industrial Laws - B Com

1. What is the time limit for payment of bonus under the Payment of Bonus Act (1965)?
Ans. As per the Payment of Bonus Act (1965), an employer is required to pay the bonus to the employees within 8 months from the close of the accounting year.
2. Can an employer extend the time limit for payment of bonus under the Payment of Bonus Act (1965)?
Ans. Yes, the employer can seek an extension of the time limit for payment of bonus by applying to the appropriate government authority. The extension can be granted for a maximum period of 5 years.
3. What happens if an employer fails to pay the bonus within the specified time limit?
Ans. If an employer fails to pay the bonus within the specified time limit, he/she will be liable to pay simple interest on the amount of bonus payable. The interest rate is 8% per annum or the rate notified by the government, whichever is higher.
4. Are there any exceptions to the time limit for payment of bonus under the Payment of Bonus Act (1965)?
Ans. Yes, there are exceptions to the time limit for payment of bonus. If the bonus cannot be paid within the time limit due to any dispute or pending legal proceedings, the employer can deposit the bonus amount with the appropriate government authority. The deposited amount will be held in trust until the dispute or legal proceedings are resolved.
5. Can an employee claim bonus after the expiry of the time limit specified under the Payment of Bonus Act (1965)?
Ans. Yes, an employee can claim bonus even after the expiry of the time limit specified under the Payment of Bonus Act (1965). However, the employee needs to make an application to the appropriate government authority for the recovery of the bonus amount. The authority will then initiate the necessary steps to recover the unpaid bonus from the employer.
54 videos|46 docs|18 tests
Download as PDF
Explore Courses for B Com exam
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Related Searches

Sample Paper

,

study material

,

Industrial Laws | Industrial Laws - B Com

,

Objective type Questions

,

practice quizzes

,

Summary

,

Semester Notes

,

Previous Year Questions with Solutions

,

Extra Questions

,

Industrial Laws | Industrial Laws - B Com

,

pdf

,

Important questions

,

shortcuts and tricks

,

Time limit for payment of bonus - Payment of Bonus Act(1965)

,

Industrial Laws | Industrial Laws - B Com

,

Exam

,

mock tests for examination

,

video lectures

,

ppt

,

past year papers

,

Time limit for payment of bonus - Payment of Bonus Act(1965)

,

MCQs

,

Free

,

Time limit for payment of bonus - Payment of Bonus Act(1965)

,

Viva Questions

;