Payment of Bonus Act, 1965 read with Payment of Bonus Rules, 1975 – Statutory Compliance
Applicability:- Every organization with 20 or more employees needs to comply with the Bonus Act and must therefore file the online combined annual report under the Act.
Due Date:- 1st February 2023 but can be filed online after due date along with other laws annual returns.
Eligible:- Employees drawing ₹21000 per month or less (Basic + DA, excluding other allowances) and completing 30 working days in that financial year.
As per the 2015 amendment, when salary exceeds ₹7000 or the minimum wages fixed by the government, bonus is payable on whichever is higher as per the Code of Wages Act 2019.
(Note: – As of now Minimum Wage is Higher, therefore we need to calculate the bonus on Minimum Wages)
Payment Criteria: -Must be paid within 8 months from the close of the accounting year. (Min Rate of 8.33% and Max at 20%).
For the first 5 years, organizations need not pay bonuses if they have made losses. If they have made profits in any year in the first 5 year period, they will have to pay out a bonus for that particular year.
After the completion of 5 years, organizations are required to pay bonuses, irrespective of whether they are making a profit or loss.
The Establishments covered under the Act Shall continue to pay the bonus even if the number of employees falls below subsequently.
Penalty for Non-Compliance:- In case of violation of the provisions under the Act or rules, then the penalty is imprisonment for six months or may impose a fine of Rs.1000 or both.
Prevention of Sexual Harassment at Workplace Act, 2013 (POSH Act)
Applicability:- Every organization with 10 or more employees needs to comply with the POSH Act and must therefore file the annual report under the POSH Act.
Last date for filing Annual Return under POSH Act for the year 2022 was 31 January 2023.
It is to be filed to the Nodal Officer (District Magistrate/ Deputy Commissioner) of the particular area or district along with following details:-
a) List of Internal Complaints Committee (ICC) Members.
b) Details of Orientation programmes and workshops for the employees and ICC members on periodical basis.
c) Sample photos of sufficient notices & IEC informing employees about your organization’s stance on sexual harassment and the consequences of indulging in such acts in Hindi & English both.
d) Signed copy of Anti-Sexual Harassment Policy along with reference number of the policy.
e) Specify sexual harassment as a form of misconduct under the HR Policy or service rules, or the standing orders and mention the amendment reference number.
Penalty for Non-Compliance:-
Employers that fail to comply would be subject to a punishment of up to Rs. 50,000.
If an employer who has previously been convicted of an offence commits the same offence again, he will be subject to twice the punishment imposed on the first conviction.
Furthermore, his licence to operate a business could be revoked.
As per Letter nos. 121 and 122 dated 8th Dec, 2021 issued by Adl Deputy Commission Cum District Officer, Gurugram every Organization to which POSH Act applies, shall file annual reporting for the calendar year by 30th April every year.
Payment of Gratuity Act, 1972 – Statutory Compliance
Applicability:- Every organization with 10 or more employees needs to comply with the Gratuity Act.
In future, the number of employees reduces from 10 even then this act will continue to govern them.
Compliances:-
a) Within 30 days of the rules becoming applicable, a notice in Form ‘A’ shall be submitted by the employer to the controlling authority of the area.
b) Notice in Form ‘B’ shall be submitted by the employer to the controlling authority within 30 days of any change in the name, address, employer, or nature of business.
c) Employer intends to close down the business submit a notice in Form ‘C’ to the controlling authority at least 60 days before the intended closure.
d) Display of Abstract of Act & Rule with Name & Designation of the Officer to be exhibited on the Notice Board.
e) FORM – F for Nomination to be received from employees at the time of joining the company.
The amount of gratuity shall not exceed Rs. 20 Lakhs. Thus, payments above ₹20,00,000 is a voluntary payment and not forced by law.
Gratuity shall be payable to the employee If he has rendered 5 years of continuous service on his superannuation, resignation or retirement or his death at the rate of 15 days wages based on wage rate last drawn by the employee (15/26)* no. of years worked * (Basic Wages + DA).
In case of an employee’s death or disability due to accidents or disease, an employer must pay his/her nominee or legal heir. It is applicable irrespective of his/her years of service in an organisation.
All the employers must obtain an insurance from the LIC or any other prescribed insurer for their liability of payment of gratuity and shall be liable to pay the contribution by way of
premium to the approved gratuity fund.
The payment should be made within 30 days from the date it is due to the employee. Failure to pay within the prescribed limit will result in the payment of simple interest.
Penalty for Non-Compliance:- Failure to comply with the provisions of this Act shall be punishable by a minimum of 3 months, which may extend up to 1 year, or a fine of Rs. 10,000, which may extend up to Rs. 20,000.
Maternity Benefit Act, 1961 – Statutory Compliance
Due date:- 21st January 2023, also it can be filed through https://registration.shramsuvidha.gov.in/
Applicability:- Any and all establishments having 10 or more than 10 employees.
Eligibility:- A woman must have been working as an employee in an establishment for a period of at least 80 days in the past 12 months.
In an Establishment employing 50 or more employees, a creche facility either separately or along with common facilities within a prescribed distance is mandatory with permission to visit the creche 4 times during the day. Organizations are also asked to facilitate work from home for the women.
The period of maternity leave has been extended from 12 weeks to 26 weeks for the women working in the private sector.
Compliances:-
a) Maintenance of Muster Roll in prescribed Form-A under Rule 3.
b) Maintenance of Annual Returns in Form-L, M, N and Submission of Annual Return to the concerned Inspector on or before 21st January every year.
c) Display of Abstract of Act & Rule to be exhibited on the Notice Board is mandatory.
Penalty for Non-Compliance:- For non-payment of benefit or dismissing or discharging, Punishment of imprisonment not less than 3 months upto 1 year or Fine not less than Rs. 2000 upto Rs. 5000.
Author Bio
Very informative article sir.