Section 28: Penalty | The Payment Of Bonus Act 1965

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Explanation using Example

Imagine a factory owner who fails to pay the statutory bonus to his employees as per the provisions of The Payment of Bonus Act, 1965. Despite receiving a direction from the authorities to comply and clear the pending bonuses, the owner disregards the instruction.

In this scenario, the factory owner has contravened the provisions of the Act. As a result, under Section 28 of the Act, the owner could face legal consequences, which may include imprisonment for up to six months, a fine up to one thousand rupees, or both.