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Bonus act

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Querist : Anonymous

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Querist : Anonymous (Querist)
19 August 2013 My client is a pvt. Ltd. co, which has got more than 200 employees working in the company as basic labourers and has 15 administrative staff, which team looks after accounts, payment to these labourers, its PF Bonus matter etc., The Co. is reqd. to pay bonus under the bonus act, which the co. is paying @ 20% to the admin staff and @8.33% to other labourers as reqd. by the law, consistently for the last several years, The matter being this, recently the labour officer has objected to this practice of the company and stated that every labour or admin staff is to be reqd. to be paid the bonus at the same rate i.e. either to pay everybody at 8.33% or 20% and not vary this percentage.
So, now the co. wants to pay everybody @8.33% p.a. as bonus. Further, it also wants to pay some extra amounts to its admin employees as they are not willing to reduction in the amount paid to them. So My questions are
1) Can the company pay such extra amount as Exgratia
2) Whether such amounts paid as exgratia is allowed under the Bonus Act.
3) Or else there is any other way out.

19 August 2013 Hi

Yes, company can pay excess above 8.33% & can be also termed as ex-gratia/performance bonus.

Thanks//Vaibhav



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