The Payment of Bonus Act, 1965
Bare Act
(1) Where an establishment is newly set up, whether before or after the commencement of this Act, the employees of such establishment shall be entitled to be paid bonus under this Act in accordance with the provisions of sub-sections (1A), (1B) and (1C).
(1A) In the first five accounting years following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, bonus shall be payable only in respect of the accounting year in which the employer derives profit from such establishment and such bonus shall be calculated in acco… Read the complete text with KanoonGPT Pro.
Simplified Act
Simplified Explanation:
(1) When a new business starts, its employees will get a bonus as per specific rules in this law.
(1A) For the first five years after the business starts selling its products or services, bonu… Read the complete text with KanoonGPT Pro.
Explanation using examples
Imagine XYZ Tech Solutions is a startup that began operations in January 2023. They specialize in developing innovative software solutions. The company had a successful launch and started generati… Read the complete text with KanoonGPT Pro.
