Recovery of the Bonus When there is no bonus given by the employer to employees then employees have the right to recover the bonus.
→ But Right to the recovery of bonus is only given to the employees who elect to take the bonus under section 9 of the Payment of the bonus act. Mainly section 21 of the ⇒Payment of bonus act deals with ⇒Recovery of the Bonus.
Learning Outcomes
According to section 21 of the Payment of the bonus act,
Where any money is due to an employee →by way of the bonus →from the employer under settlement/award/agreement
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the employee/authorized person by employee/In case of the death of the employees his assignee or nominee
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Recovery is done by this
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by making an application to the appropriate government or to the authority specified by the Government
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If authorities are specified that money is due
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Then authorities make a certificate for that amount to the collector who proceeds to recover the amount.
Note
Limitation Period for making an application ⇔ One year from the date on which money is due.
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Exception
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appropriate government is satisfied causes for not making an application within one year then the application may entertain.
Let’s Understand it!
- Section 21 of the Payment of the bonus act deals with the proceeding of the Recover bonus due on employees by the employer.
- This section gives a right to employees from the recovery of the bonus which due. But within a year on the date from the money is due.
→ The Bonus is due by the employer to the employee then the employee himself, authorized person by an employee or in case of the death of the employee his assignee made an application to the appropriate government or authorities. Them this authority specified that the money is due then authorities shall issue a certificate for the amount to the collector. Then Collector recover the due amount.
Case law
Labour Inspector Vs Authority
- In this case recovery of the bonus is done if there is in under settlement or an award or an agreement otherwise not,
- It means The mode of recovery prescribed under this section shall be available only if the bonus sought to be recovered is “under a settlement or an award or an agreement”. It will not apply to the recovery of the bonus which is payable under the Act.
Conclusion
→ Here, According to section 21 of the payment of the bonus act every employee’s right to recover the bonus from the employee by making an application to the appropriate government within one year from the date on which money is due.
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Read This Also
- Basic Introduction of the Payment of the bonus act!
- Minimum and Maximum Bonus
- Right to take the Bonus.