Payment of Bonus with retrospective effect from 1st April 2014, Other Topics

[Ashwani Rustagi]

The amended Payment of Bonus Act was notified on 1st January, 2016 and was intended to kick in with retrospective effect from 1st April 2014. The Act provides a statutory right to employees of an establishment to share the profits of his/her employer.

Whereas various High Courts have stayed the retrospective implementation of the recently amended Payment of Bonus Act, please advise update status in the State of Haryana. Do we need to pay arrear of bonus with retrospective effect 01-April-2014, if yes, by when this has to be paid.

Regards,

Ashwani Rustagi

9810013724

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

On 08.04.2016 Punjab & Haryana High Court granted interim stay against the revision of bonus payment. It is not known whether the interm stay is made absolute. Kindly confirm the same. If absolute stay is granted you need not pay the bonus arrears. This may be taken care of when the case is disposed. Since many courts have granted stay it is possible that the Supreme Court may take it and decide it.

[Ashwani Rustagi]

Thanks Mr. Mariappan.

In a Civil Writ Petition No. 6723 of 2016 filed by Messers Arti International Ltd & others, a Division Bench of Hon’ble Punjab & Haryana High Court, Chandigarh, vide its order dated 20th May 2016 has stayed the notification dated 1st January 2016 whereby the amendments made in the Payment of Bonus Act 1965 were made operative with retrospective effect i.e., from the year2014-15. But this order was for the industries/establishments in the entire State of Punjab and not Haryana.

[YAGAY AND SUN]

Karnaka and Kerala High Court have stayed the retrospective effect and Indore (MP) labour commissioner has honoured the same.

Hence, Punjab & Haryana court's stay order also have the jurisdiction on Haryana.

Further, it is a settled legal position that if a high court pronounce any verdict then, if there is no counter verdict against such verdict then, the there would be jurisdiction in other state also.

[Ganeshan Kalyani]

Enriching discussion. It enriched my knowledge. Thanks.