Payment of Bonus Amendment Act 2015, w.e.f. 1st April, 2014

The Payment of Bonus (amendment) Act,2015 received the accent of The President on 31st December, 2015 and notified in gazette on 1st January, 2016 for general information.
This is applicable w.e.f.01^st April-2014.

According to that the wages ceiling of coverage employment be express or implied has changed and sets now as ` 21000/- instant of `10000/-.

As well as the calculation of bonus wages has changed and now the wages ` 7000/- or the minimum wages for the schedule employment as fixed by government whichever is higher shall be considered instant of ` 3500/-.

BONUS BILL PASSED BY LOK SABHA

BONUS BILL PASSED BY LOK SABHA

The Lok Sabha on 22.12.2015 passed a bill allowing doubling of wage ceiling for calculating bonus to Rs 7,000 per month for factory workers with establishments with 20 or more workers, with the benefits being applicable retrospectively from April 2014.

The Payment of Bonus (Amendment) Bill, 2015, was passed by a voice vote, with some members objecting to the raising of eligibility limit for payment of bonus from a salary of Rs 10,000 per month to Rs 21,000.

Replying to a debate on the legislation, Labour Minister Bandaru Dattatreya said the Government has ensured that the interest of workers are protected and there is no infringement on their rights.

“Because of Bihar Elections this bill got delayed… The Prime Minister spoke to me and asked why should the benefits of this Act should accrue to workers from 2015. It should be made available from the April 2014,” he said while moving an official amendment to the Bill.

The official amendment provides that the benefits of the Act would be deemed to have come into force on April 1, 2014, instead of April 1, 2015.

Dattatreya said the Ministry has held 21 tripartite meetings with all central trade unions while arriving at a decision.

The Bill provides for enhancing monthly bonus calculation ceiling to Rs 7,000 per month from the existing Rs 3,500. It also seeks to enhance the eligibility limit for payment of bonus from Rs 10,000 per month to Rs 21,000 per month.

There is newly services started by Maharashtra Government for Online application of registrations or obtain Licence for Contract labour or Factory. But there is services for new registrations or renewal of registrations u/d S&E act are not available for Mumbai regions. Hence there is required to be obtained manually same from Munciple corporation of Greater Mumbai.
Now if any individual/Company will go for the manual process then Shops and Establishment Inspector firstly will ask to pay assessment Property Tax of the premise then only they will issue the RC, even though the individual/company are on rental basis at the premises and they are not concern of Owner’s property tax. The Inspector will ask for NOC from Property Tax department on the reference basis of their internal circular no. AC/NCT/463/2015-16. 

"In that clearly mentioned that for certain Practical and speedy way of recovery of Property tax it is directed to obtain no objection certificate from the concern Asst. assessor and collector of the ward before issuing/renewing/amending of cancelling any licence or shops and establishment certificate. So that no Property tax shall remain unpaid in such cases". 

MINISTRY OF LABOUR AND EMPLOYMENT NOTIFICATION New Delhi, the 2nd December, 2015 S.O. 3249(E).— Whereas the Central Government is satisfied that the public interest requires that the services in the ‘Food Corporation of India (FCI)’ which is covered by item 6 of the First Schedule to the Industrial Disputes Act, 1947 (14 of 1947), should be declared to be a ‘Public Utility Service’ for the purposes of the said Act.
Now, therefore, in exercise of the powers conferred by sub-clause (vi) of clause (n) of section 2 of the Industrial Disputes Act, 1947, the Central Government hereby declares with immediate effect the said industry to be a ‘Public Utility Service’ for the purpose of the said Act for a period of six months.

 [F. No. S-11017/5/91-IR (PL)] 

G. VENUGOPAL REDDY, Jt. Secy.  

In the appeal against the order of the EPF Authority under section 7A of the Act the appellant have stated that directing the appellant to deposit the dues is illegal as the EPF Authority has assessed the dues considering the allowances as ‘basic wages’. The EPF Appellate Tribunal observed that the provident fund contribution is to be calculated on the basic wages and not upon the wages fixed under the Minimum Wages Act as already settled by the Punjab & Haryana High Court in the case of APFC Gurgaon vs. M/s. G4S Security Services (I) Ltd., 2011 LLR 316. Fixation of wage structure is within the domain of the employer. Wages can be split into allowances. Hence, order of the EPF Authority cannot sustain and appeal is allowed. M/s. SSM Fine Yarns vs. RPFC, MaduraiATA No.734(13) 2010 decided on 7.2.2012

In the appeal against the order of the EPF Authority under section 7A of the Act the appellant have stated that directing the appellant to deposit the dues is illegal as the EPF Authority has assessed the dues considering the allowances as ‘basic wages’.

The EPF Appellate Tribunal observed that the provident fund contribution is to be calculated on the basic wages and not upon the wages fixed under the Minimum Wages Act as already settled by the Punjab & Haryana High Court in the case of APFC Gurgaon vs. M/s. G4S Security Services (I) Ltd., 2011 LLR 316. Fixation of wage structure is within the domain of the employer. Wages can be split into allowances.

 Hence, order of the EPF Authority cannot sustain and appeal is allowed.

M/s. SSM Fine Yarns vs. RPFC, Madurai
ATA No.734(13) 2010 decided on 7.2.2012