CONSTITUTIONAL VALIDITY OF PAYMENT OF BONUS ACT,1965

INTRODUCTION:
The word Bonus is derived from latin origin which means gift. The practice of paying bonus in
India appears to have originated during first world war when certain textile mills granted 10% of
wages as war bonus to their workers in 1917 Bonus is a very debated issue in the field of
industrial relations. 1965, was promulgated on 29th may, 1965. Before bonus legislation of
1965,demand for Bonus was not a statutory but a judicial right. The main reason for all these
complications was the absence of an express legislative definition of the term Bonus in the act.
We have to take up an overview of the nature of the term Bonus as it has evolved through the
years and its present form in the Payment of Bonus Act, 1965. Not only in this Payment of Bonus
Act ,the term Bonus has not been defined in any legislative enactment.

RESEARCH OBJECTIVE:
To study and analyse the issue relating the bonus to be provided by employer.
To analyse the various possible legislative change where the term bonus would be clearly
mentioned also when to be provided and when not to be provided.
RESEARCH QUESTION:

1. Is bonus essentially provided on basis of profits or on basis of production and productivity?

2. Is bonus an ex gratia payment or statutory right?

3. Whether the workers in public and non-profit making services like government and municipal
employees are eligible to demand bonus?

RESEARCH METHODOLOGY:
The research methodology which is adopted in this project is doctrine. The sources which are
used for this project are primary source like statute and secondary source like books. It mainly
revolves around the nature and issues relating to bonus.

TENTATIVE CHAPTERISATION:

1.) Introduction and Definition of Payment of bonus act 1965

2.) Aims of The payment of Bonus Act, 1965

 CONSTITUTIONAL VALIDITY OF PAYMENT OF BONUS ACT,1965

3.) Applicability of the Act

4.) Eligibility of the Act

5.) Minimum Bonus of the Act

6.) Maximum Bonus of the Act

7.) Mode and Time for Payment of Bonus Act

8.) Employers Obligations of the Act

9.) Time limit for payment

10.) Offences and penalties

11.) Methods of Calculation of bonus

1.) Calculate the statutory bonus

2.) Calculate the Available Surplus

CONCLUSION:

Just because there is lack of interpretation for the word bonus we can strike down the
constitutionality of Payment of Bonus Act,1965. This act provides bonus which gives boost to
the workers and his family. The non-payment of bonus affects the interests of the workmen and
also those of the industry and society at large. Hence the policy on Bonus has to be based upon
the balancing of these conflicting interests and ultimately result in cordial relations.
CONSTITUTIONAL VALIDITY OF PAYMENT OF BONUS ACT,1965