Section 19 - Insertion of new section 31A - Payment Of Bonus (Amendment) Act, 1976

19. Insertion of new section 31A. After section 31 of the principal Act, the following section shall be inserted, namely :- 31A. Special provision with respect to payment of bonus linked with production or productivity. Notwithstanding anything contained in this Act,- (i) where an agreement or a settlement has been entered into by the employees with their employer before the commencement of the Payment of Bonus (Amendment) Act, 1976, or (ii) where the employees enter into any agreement or settlement with their employer after such commencement, for payment of an annual bonus linked with production or productivity in lieu of bonus based on profits payable under this Act, then, such employees shall be entitled to receive bonus due to them under such agreement or settlement, as the case may be: Provided that such employees shall not be entitled to be paid such bonus in excess of twenty per cent. of the salary or wage earned by them during the relevant accounting year. .