BONUS ACT BASICS
A bonus is an extra amount of money that is added to someone's pay, usually because they have worked very hard.
The practice of paying bonus in India appears to have originated during First World War when certain textile mills granted 10% of wages as war bonus to their workers in 1917.
This Act applies to wages payable to an employed person in respect of a wage period if such wages for that wage period do not exceed. Six thousand five hundred rupees per month or such other higher sum which, on the basis of figures of the Consumer Expenditure Survey published by the National Sample Survey Organization, the Central Government may after every five years, by notification in the Official Gazette, specify.
This Act applies to wages payable to an employed person in respect of a wage period if such wages for that wage period do not exceed. Six thousand five hundred rupees per month or such other higher sum which, on the basis of figures of the Consumer Expenditure Survey published by the National Sample Survey Organization, the Central Government may after every five years, by notification in the Official Gazette, specify.
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Sharing the updated PPT on "Provident Fund & MP Act 1952" of India. Kindly have a look on the Same & Share your valuable feedback & suggestion. If you found any mistake kindly update me for the modification the same.
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Lay-off and Retrenchment –difference between lay-off and
Retrenchment their application, necessary preconditions for their
application, lay-off and retrenchment compensation, special
provisions relating to lay-off, retrenchment, and closure in certain establishments, penalty, and punishment for illegal lay-off or retrenchment, the consequences of illegal lay-off or retrenchment.
Strike and Lockout - Legal and illegal strikes and lockouts,
Justified and unjustified strikes and lockouts, Strike and lockout in public utility services and other industries, Distinction between
lockout and closure, strike and lockout.
Dear Seniors & Friends,
Sharing the updated PPT on "Provident Fund & MP Act 1952" of India. Kindly have a look on the Same & Share your valuable feedback & suggestion. If you found any mistake kindly update me for the modification the same.
Regards,
Anshu Shekhar Singh
Mob: 9999 844 355
Lay-off and Retrenchment –difference between lay-off and
Retrenchment their application, necessary preconditions for their
application, lay-off and retrenchment compensation, special
provisions relating to lay-off, retrenchment, and closure in certain establishments, penalty, and punishment for illegal lay-off or retrenchment, the consequences of illegal lay-off or retrenchment.
Strike and Lockout - Legal and illegal strikes and lockouts,
Justified and unjustified strikes and lockouts, Strike and lockout in public utility services and other industries, Distinction between
lockout and closure, strike and lockout.
The Payment of Bonus act, 1965. this PPT has inclusion recent amendments and is done from the view point of students. If anything has been missed out, do let us know through comments.
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A bonus payment is usually made to employees in addition to their base salary as part of their wages or Salary. While the base salary usually is a fixed amount per month, bonus payments more often than not vary depending on known criteria, such as the annual turnover, or the net number of additional customers acquired, or the current value of the stock of a public company. Thus bonus payments can act as incentives for managers attracting their attention and their personal interest towards what is seen as gainful for their companies' economic success. There are widely‐used elements of pay for performance and working well in many instances, including when a fair share of an employees participation in the success of a company is desired. There are, however, problematic instances, most notably when bonus payments are high. When they are tied to possibly short-lived figures such as an increase in monthly turnover, or cash flow generated from an isolated marketing action, such figures often do not reflect a solid reliable win for a company, and they certainly do not reflect a manager's lasting efforts to the company's best. On the contrary, such figures are prone to being adjusted or even manipulated to the benefit of those employees who are responsible for reporting them, while they are already planning their leave with a golden handshake.
INVENTORY MODELS
One basic problem of
inventory management is to find
out the order quantity so that it
is most economical from overall operational point of view. Here that problem lies in minimizing the two conflicting costs, i.e. ordering cost and inventory carrying cost.
Inventory models help to find out the order quantity which minimizes the total costs(sum of ordering costs and inventory carrying costs).
Industrial policy is an important document that sets the tone in implementing, promoting the regulatory roles of the government.
It was an effort to expand the industrialization and uplift the economy to its deserved heights.
It signified the involvement of Indian government in the development of industrial sector.
Industrial growth of a country is guided and regulated through its industrial policies.
TOTAL QUALITY MANAGEMENT
TQM
TOTAL QUALITY MANAGEMENT
TOTAL QUALITY MANAGEMENT
Total - made up of the whole
Quality - degree of excellence a product or service provides
Management - act, art or manner of planning, controlling, directing,….
Therefore, TQM is the art of managing the whole to achieve excellence.
According to Information System:
TQM is used to assure the quality of information by ensuring, verifying, and maintaining software integrity through an appropriate methodology choice amongst the technology, design and architecture.
TQM approach of IS ensures satisfactory level attainment of these parameters through the implementation of various strategies in the process of development.
The software quality assurance is nothing but what is required which would ensure conformance to the standards set by the management. It can be done by quality testing.
A cheque is an order by the customer of a bank directing his banker to pay on demand, the specified amount, to the order of person named therein or to the bearer
According to SEC. 6 of the Negotiable Instruments Act, 1881, the term cheque is defined as “a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand.”
A promissory note is a financial instrument that contains a written promise by one party to pay another party a definite sum of money, either on demand or at a specified future date
Sec. 4 of the Negotiable Instruments Act, “A promissory note is an instrument in writing containing an unconditional order, signed by the maker, to pay a certain sum of money only to or to the order of a certain person or to the bearer of the instrument.”
A bill of exchange is a written order binding one party to pay a fixed sum of money to another party on demand at some point in the future.
According to Sec.5 of the Negotiable Instruments Act, 1881, “A Bill of exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.
NEGOTIABLE INSTRUMENTS E- PURSE TRUNCATION OF CHEQUENavya Jayakumar
NEGOTIABLE INSTRUMENTS
E- PURSE
TRUNCATION OF CHEQUE
The word “ negotiable” means “transferable from one person to another”
A negotiable instrument is a signed document that promises a sum of payment to a specified person
Negotiable instruments are transferable in nature
Sec.13 of the Indian Negotiable Instrument Act, 1881 defines a negotiable instruments as “ a promissory note, bill of exchange or cheque payable either to order or to the bearer.”
Commercial banks also deal with these instruments. The bank collects these instruments for the customers to grant loans and advances against these instruments
Cheque Truncation System (CTS) is a cheque clearing system undertaken by the Reserve Bank of India (RBI) for quicker cheque clearance
Cheque Truncation System (CTS) or Image-based Clearing System (ICS), in India, is a project of the Reserve Bank of India (RBI), commenced in 2010, for faster clearing of cheques.
CTS is based on a cheque truncation or online image-based cheque clearing system where cheque images and magnetic ink character recognition (MICR) data are captured at the collecting bank branch and transmitted electronically.
STUDY OF PRODUCTION AND PROSPECTS OF EXPORT OF SPICES FROM INDIA Navya Jayakumar
STUDY OF PRODUCTION AND PROSPECTS OF EXPORT OF SPICES FROM INDIA
Nature has blessed with so many plants, out of which man has exploited some for his benefit. Among them are the spices, though required in small quantities, with many properties and beneficial uses
India is the home to a number of spices. It may be said that there is no Indian cuisine without the addition of one or more spices.
SAMPLING ; SAMPLING TECHNIQUES – RANDOM SAMPLING (SIMPLE RANDOM SAMPLING)Navya Jayakumar
SAMPLING ; SAMPLING TECHNIQUES – RANDOM SAMPLING
(SIMPLE RANDOM SAMPLING)
Sampling means the process of selecting a part of the population
A population is a group people that is studied in a research. These are the members of a town, a city, or a country.
It is difficult for a researcher to study the whole population due to limited resources
E.G.. Time, cost and energy
Hence the researcher selects a part of the population for his study, rather than selecting the whole population. This process is known as sampling
Also known as Random Sampling
A type of sampling where each member of the population has a known probability of being selected in the sample
When a population is highly homogeneous, its each member has a known chance of being selected in the sample
The extend of homogeneity of a population usually depends upon the nature of the research. E.g.: who are the target respondents of the research
Professor Michael Porter suggested three general positioning strategies to achieve competitive advantage :
Low Cost Leadership Strategy
Differentiation Strategy
Focus Strategy
The Generic Competitive Strategy (GCS) is a methodology designed to provide companies with a strategic plan to compete .The GCS is useful when a company is looking to gain an advantage over a competitor
ECB is basically a loan availed by an Indian entity from a nonresident lender
Most of these loans are provided by foreign commercial banks and other institutions
It refers to commercial loans availed from non-resident lenders with a minimum average maturity of 3 years
An external commercial borrowing (ECB) is an instrument used in India to facilitate Indian companies to raise money outside the country in foreign currency. The government of India permits Indian corporates to raise money via ECB for expansion of existing capacity as well as for fresh investments.
CHANGE, RESISTANCE TO CHANGE, OVERCOME RESISTANCE TO CHANGENavya Jayakumar
Alternation which occurs in the overall work environment of an organization
The whole organisation tends to be affected by the change in any part of it
An enterprise can be changed in several ways. Its technology can be changed, its structure, its people and other elements can be changed.
Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. It may be positive, zero or negative.
NPV is used in capital budgeting and investment planning to analyze the profitability of a projected investment or project.
Also known as sophisticated technique for capital budgeting exercise.
It accounts for time value of money by using discounted cash flows in the calculation.
New Product development is a journey. It's the road which leads to the actual product and then the actual product to the market.
NPD requires an understanding of customer needs and wants, the competitive environment, and the nature of the market.
It is generally used to discuss the complete process of introducing a new product in the market.
The creation of products with new or different characteristics that offer new or additional benefits to the customer.
The capital which is needed for the regular operation of business is called working capital. 1- for the purchase of raw materials
2- for the payment of wages
3- payment of rent and of other expenses
Working capital is kept in the form of cash, debtors, raw materials inventory, stock of finished goods, bills receivable etc.
Size Of Business
Nature Of Business
Storage Period
Credit Period
Seasonal Requirement
Potential Growth Or Expansion Of Business
Changes In Price Level
Dividend Policy
Working Capital Cycle
Operating Efficiency
Other Factors
Working capital requirement of a firm is directly influenced by the size of its business operation.
Big business organizations require more working capital than the small business organization.
Working capital requirement depends also upon the nature of business carried by the firm. Normally, manufacturing industries and trading organizations need more working capital than in the service business organizations.
A service sector does not require any amount of stock of goods. But in the manufacturing or trading firm, credit sales and advance related transactions are in large amount.
Time needed for keeping the stock in store is called storage period. The amount of working capital is influenced by the storage period. If storage period is high A firm should keep more quantity of goods in store and hence requires more working capital. if the storage Period is less , then more stock of goods must be held in store as work-in-progress.
Car Accident Injury Do I Have a Case....Knowyourright
Every year, thousands of Minnesotans are injured in car accidents. These injuries can be severe – even life-changing. Under Minnesota law, you can pursue compensation through a personal injury lawsuit.
A "File Trademark" is a legal term referring to the registration of a unique symbol, logo, or name used to identify and distinguish products or services. This process provides legal protection, granting exclusive rights to the trademark owner, and helps prevent unauthorized use by competitors.
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In 2020, the Ministry of Home Affairs established a committee led by Prof. (Dr.) Ranbir Singh, former Vice Chancellor of National Law University (NLU), Delhi. This committee was tasked with reviewing the three codes of criminal law. The primary objective of the committee was to propose comprehensive reforms to the country’s criminal laws in a manner that is both principled and effective.
The committee’s focus was on ensuring the safety and security of individuals, communities, and the nation as a whole. Throughout its deliberations, the committee aimed to uphold constitutional values such as justice, dignity, and the intrinsic value of each individual. Their goal was to recommend amendments to the criminal laws that align with these values and priorities.
Subsequently, in February, the committee successfully submitted its recommendations regarding amendments to the criminal law. These recommendations are intended to serve as a foundation for enhancing the current legal framework, promoting safety and security, and upholding the constitutional principles of justice, dignity, and the inherent worth of every individual.
PRECEDENT AS A SOURCE OF LAW (SAIF JAVED).pptxOmGod1
Precedent, or stare decisis, is a cornerstone of common law systems where past judicial decisions guide future cases, ensuring consistency and predictability in the legal system. Binding precedents from higher courts must be followed by lower courts, while persuasive precedents may influence but are not obligatory. This principle promotes fairness and efficiency, allowing for the evolution of the law as higher courts can overrule outdated decisions. Despite criticisms of rigidity and complexity, precedent ensures similar cases are treated alike, balancing stability with flexibility in judicial decision-making.
Introducing New Government Regulation on Toll Road.pdfAHRP Law Firm
For nearly two decades, Government Regulation Number 15 of 2005 on Toll Roads ("GR No. 15/2005") has served as the cornerstone of toll road legislation. However, with the emergence of various new developments and legal requirements, the Government has enacted Government Regulation Number 23 of 2024 on Toll Roads to replace GR No. 15/2005. This new regulation introduces several provisions impacting toll business entities and toll road users. Find out more out insights about this topic in our Legal Brief publication.
ASHWINI KUMAR UPADHYAY v/s Union of India.pptxshweeta209
transfer of the P.I.L filed by lawyer Ashwini Kumar Upadhyay in Delhi High Court to Supreme Court.
on the issue of UNIFORM MARRIAGE AGE of men and women.
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All eyes on Rafah: But why?. The Rafah border crossing, a crucial point between Egypt and the Gaza Strip, often finds itself at the center of global attention. As we explore the significance of Rafah, we’ll uncover why all eyes are on Rafah and the complexities surrounding this pivotal region.
INTRODUCTION
What makes Rafah so significant that it captures global attention? The phrase ‘All eyes are on Rafah’ resonates not just with those in the region but with people worldwide who recognize its strategic, humanitarian, and political importance. In this guide, we will delve into the factors that make Rafah a focal point for international interest, examining its historical context, humanitarian challenges, and political dimensions.
1. PAYMENT OF BONUS ACT, 1965
SUBMITTED BY,
NAVYA JAYAKUMAR P
ROLL NO: 20
2. CONTENT
INTRODUCTION
PAYMENT OF BONUS ACT, 1965
OBJECTIVES
APPLICABILITY
DEPARTMENTS, UNDERTAKING AND BRANCHES
ELIGIBILITY
DISQUALIFICATION
NUMBER OF WORKING DAYS
INSPECTOR UNDER SEC.20 AND HIS POWERS
RIGHTS OF EMPLOYEES AND EMPLOYERS
OFFENCES AND PENALITIES
CONCLUSION
REFERENCE
3. INTRODUCTION
A bonus is an extra amount of money that
is added to someone's pay, usually because they have
worked very hard.
The practice of paying bonus in India appears to
have originated during First World War when certain
textile mills granted 10% of wages as war bonus to
their workers in 1917.
PAYMENT OF BONUS ACT, 1965
3
4. PAYMENT OF BONUS ACT, 1965
• The Payment of Bonus Act, 1965 aims to regulate
the amount of bonus paid to the persons employed in
certain establishments based on their profits and
productivity.
• The act is applicable to the whole of India for all
establishment containing twenty or more persons
employed on any day during the year.
4PAYMENT OF BONUS ACT, 1965
5. OBJECTIVE
• To impose a legal responsibility upon an employer of
every establishment covered by the Act to pay the
bonus to employees in an establishment.
• To identify the minimum and maximum percentage
of bonus.
• To prescribe the formula for calculating bonus.
• To provide redressal mechanism.
5PAYMENT OF BONUS ACT, 1965
6. APPLICABILITY OF THE ACT
It applies to any factory or establishment containing
twenty or more workers employed on any day during the
year
The act does not apply to the non-profit making
organisations
It is not applicable to establishments such as LIC,
hospitals which are excluded under section 32.
It is not applicable to establishments where employees
have signed an agreement with the employer
It is not applicable to establishments exempted by the
appropriate government like sick units
6PAYMENT OF BONUS ACT, 1965
7. DEPARTMENTS, UNDERTAKINGS
AND BRANCHES
• According to this section, any different departments or
undertakings or branches of an establishment of whether
located in the same place or at different areas should be
considered as parts of the similar establishment for
computation of bonus under the Act.
• The separate balance sheet regarding profit and loss of
the establishment in the year had to be prepared and
maintained concerning such department or undertaking,
or branch should be treated as a separate establishment
for computation of bonus for the year.
7PAYMENT OF BONUS ACT, 1965
8. ELIGIBILITY FOR BONUS
• Any employee receiving salary or wages up to
RS.21,000 per month and engaged in any work
whether skilled, unskilled, managerial, supervisory
etc. is entitled to the bonus for every year if the
employees have worked for not less than 30 working
days in the same year.
8
PAYMENT OF BONUS ACT, 1965
9. DISQUALIFICATION OF BONUS
• The employees cannot utilise the bonus in case of
undergoing with the following activities such as
dishonesty, theft, sabotage of any property of
establishment, violent behaviour while on the
premises of the establishment.
9
PAYMENT OF BONUS ACT, 1965
10. NUMBER OF WORKING DAYS
• An employee will be considered working in every year by
including the following days which is specified here.
The employee who is under an agreement or as permitted by
standing orders under the Industrial Employment (Standing
Orders) Act, 1946, the Industrial Disputes Act, 1947 or any
other law applicable to the establishment.
The employee during employment has taken leave with salary.
The employee who has been absent due to temporary
disablement caused by accident arising out of and in the
course of his work.
The employee during the accounting year has been on
maternity leave with salary.
10PAYMENT OF BONUS ACT, 1965
11. PAYMENT OF MINIMUM AND
MAXIMUM BONUS
• The minimum bonus will be provided 8.33 % of the
salary during the year, or one hundred rupees will be
given in case of employees above 15 years and sixty
rupees in the case of employees below 15 years,
whichever is higher.
• The maximum bonus is 20 % of the salary during the
accounting year.
11PAYMENT OF BONUS ACT, 1965
12. TIMELINE FOR PAYMENT OF
BONUS
The payment of bonus should be paid in cash
within eight months from the end of the accounting
year or within a month from the date of enforcement
of the act.
12
PAYMENT OF BONUS ACT, 1965
13. COMPUTATION OF BONUS
As per the Section 4 and section 7 together with the
schedule 1 and 2 deals with the calculation of gross profit and
available surplus out of which 67% in case of companies and
60% in other cases would be allocable surplus.
• To compute the available surplus the sums, so deductible from
the gross profits are
1. All direct taxes under section 7
2. The sums which are particularised in the schedule
3. The allowance for investment or development in which
the employer is allowed to deduct from his income under
the Income Tax Act
• Available Surplus = Gross Profit – ( deduct) the following :
▫ Depreciation is allowable in section 32 of the Income-tax
Act.
▫ Development Allowance.
13PAYMENT OF BONUS ACT, 1965
14. INSPECTORS UNDER SECTION 20
Section 20 enables the relevant government to
appoint Inspectors for this Act, by notification in the
official gazette.
14PAYMENT OF BONUS ACT, 1965
15. • To require an employer to furnish information.
• To visit any establishment at any reasonable time.
• To order certain production documents and examine
the same.
• To take extracts from the records
• To examine the employers, his agent or servant or
any other person found in charge of the
establishment.
• To execute such other powers as may be prescribed
under the rules
15PAYMENT OF BONUS ACT, 1965
POWERS OF INSPECTORS
16. DUTIES OF THE EMPLOYER
• To estimate and pay the annual bonus as required
under the Act.
• To maintain the following registers:
• The Register is showing the computation of
allocating surplus in respective Form.
• The register should be maintained with the payment
of the bonus to the employees.
• To co-operate with the Inspector, by producing the
records maintained before inspection and such other
information as may be required by them.
16PAYMENT OF BONUS ACT, 1965
17. RIGHTS OF EMPLOYERS
• Right to notice any disputes relating to application or
interpretation of any provision of the Act, to the Labor
Court or Labor Tribunal.
• Right to make a valid deduction from the bonus due to an
employee, such as festival bonus paid and financial loss
created by the misbehaviour of the workers.
• Right to take the bonus of an employee, who has been
dismissed from service for misbehaviour, violent
behaviour, fraud, misappropriation or sabotage of any
property of the establishment.
17PAYMENT OF BONUS ACT, 1965
18. RIGHTS OF EMPLOYEES
• Right to claim bonus due under the Act and to request an
application to the Government, for the redemption of
bonus amount which is unpaid, within one year of its
being due.
• Right to notice any dispute to the Labor Court/Tribunal.
• Employees who are not eligible for the Payment of Bonus
Act, cannot raise a dispute about the bonus under the
Industrial Disputes Act.
• Right to seek clarification and obtain information, on any
item in the accounts of the establishment.
18PAYMENT OF BONUS ACT, 1965
19. OFFENCES AND PENALTIES
• In case of violation of the provisions under the Act or
rules then the penalty is imprisonment for 6 months
or may impose fine of Rs.1000 or with both.
• In case of failure to comply with the directions or
requisitions made the penalty is imprisonment for six
months or may impose fine of Rs.1000 or with both.
• In case of offences by companies, firms, body
corporate or association of individuals, its director,
partner or a principal or officer responsible for the
conduct of its business, should be deemed to be guilty
of that offence, unless the person concerned proves
that the crime was committed out of his knowledge or
that he exercised all due diligence.
19PAYMENT OF BONUS ACT, 1965
20. CONCLUSION
Bonus motivates employees to increase
performance because they can see their individual
impact on the company's success. The bonus amount
can be a set dollar amount or a percentage of the
employee's total pay.
PAYMENT OF BONUS ACT, 1965
20