The Payment of Bonus Act imposes statutory liability upon the employers of every establishment covered under the Act to pay bonus to their employees. It further provides for payment of minimum and maximum bonus and linking the payment of bonus with the production and productivity. The Act applies to every factory where 10 or more workers are working and every other establishment in which 20 or more persons are employed, on any day during an accounting year.
ENFORCEMENT OF THE ACT
The Inspecting Officers/Inspectors enforce the provisions of the Act in their respective territorial jurisdictions assigned to them under the administrative control of the respective Labour Officers, Assistant Labour Commissioners and Deputy Labour Commissioners. The Act places an obligation on every employer covered under the Act to prepare and maintain certain registers, records and other documents as provided under the Rules.
The punishment provided for contravention of any provisions of the Act or any rule made there under is imprisonment for a term, which may extend for six months or with fine, which may extend to Rs. 1000/- or with both.