CRITICAL ANALYSIS OF THE PAYMENT OF BONUS ACT, 1965

The employees of a company are given statutory right to share the profit of their employer through The Payment of Bonus Act, 1965. Bonus is generally referred to as a reward that is given to a worker and therefore, the main objective of the Act is rewarding the employees for their work and contribution in the organisation. The practice of payment of bonus was first spotted during the world wars when an organisation granted 10% of the wage as war bonus to its employees and since then payment of bonus has brought about wave of happiness among the family of the employees which has also resulted in increase in performance of the workers in the firm. The aim of this research paper is to analyse the provisions of the Act and the latest amendments made to the Act. The researchers will look into the history of the Act. The researchers will also look into the rights and duties of both the employees and the employer under the act. The researchers will discuss the eligibility for bonus under the Act and critically analyse the same. The researchers will also analyse the maximum and the minimum bonus that can be given to a worker and deadline for payment of said bonus. The research paper will also talk about the offences and penalties under the Act and also critically analyse the amendments of the Act. The researchers will discuss the merits and demerits of the said amendment and the ceiling limit on the amount considered for calculation of bonus under the Act.