Provision for bonus

This query is : Resolved

BHASKAR AUDDY (Querist)
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18 August 2010 A compnay has declared a lock-out in its factory and also at the Corporate Office.
The lock out has been lifted prior to 90 days from the date on which accounting year ends. There are more than 20 number of workers have been working after the lifting of the lock out. Is it complusorily required to provide for the bonus @ minimum rate of 8.33% in such situation under the Payment of Bonus Act in the year when the factory has been reopened?
If not whether there is any clarification to that extent?

vrnanda

vrnanda (Expert)
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18 August 2010 check out whether the same is an avoidable lock-out or non - avoidable lock out.

if it is an avoidable lock-out, you have to provide for the bonus.

if it is non-avoidable lock out, the depends on the case to case depending on the facts of the case whether to provide for the bonus or not. simple words, you need to ensure the interest of the employee.