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Bonus

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  • Bonus is a cash payment made by the employer to the employees
  • Bonus is paid in addition to the Wages.
  • Bonus is not an ex-gratia.
  • Webster's International Dictionary: Bonus is something given in addition to what is ordinarily received by or strictly due to the recipient.
  • Unlike Wages, Bonus are paid even when there is no contract for the payment but done because it is legally due
  • Bonus was first paid in India to textile workers as 'war bonus' in 1917. This was continued for two years and later employees of all industries began to ask for bonus.
  • British Government has appointed 'The Bonus Disputes Committee' under the chairmanship of Macleod. The committee did not recognize the right to bonus and rejected the claim of the employees.
  • Indian Government appointed the 'Committee of Profit Sharing' in 1948 which recommended the payment of Bonus
  • 1961 Bonus Commission strongly recommended the payment of Bonus. This lead the Government to bring an Act called the Payment of Bonus Act, 1965
  • Bonus Commission suggested that the Bonus payment should be done when 'profits exceed a certain base, laborers should legitimately have a share in them'.

Related Cases / Recent Cases / Case Law

  • K S Balan and others vs. State of Kerala and another
  • Mill Owners Association vs. Rastriya Mill Mazdoor Sangh
  • Muir Mill Ltd. vs. Suti Mill Mazdoor Union