Right to take the bonus Annual Bonus is an important component of wage payable to workers.

As its payment can now be claimed as a legal right, it is looked upon by the working class as a great hope and expectation. Again, as real wages payable to most of the workers in India have not reached even the prewar (1939) level, the annual bonus will continue to play the part of tilling the gap between the existing and the living wage.

  • Though views have been expressed for the total abolition of bonus claim, and instead for raising the wage level, it appears that such a radical step has no chance of acceptance at least till the whole wage policy undergoes a rational and planned formulation in place of its present haphazard growth.’


When the right is given to a person when he is entitled to the right, he is eligible for the right then a particular right is given to the person. So, Section 8 talks about Eligibility for the bonus.

According to section 8 of the Payment of the Bonus act,1965 said that,

        “Every employee

shall be entitled to be paid

by his employer in an accounting year,

bonus in accordance with the provision of this act,

provides he has worked in the establishment

for not less than thirty working days

in that year.”

It impliedly tells that every employee has the right to take the bonus from the employers, here, the question is that

According to section 8 of the act says that employee who has worked for any 30 days or more working days in the accounting year shall be entitled to the bonus as per the provision of this act.

  • This section creates a right in the employee to be paid the bonus, every right has a corresponding duty, In the case of P. Kelkar vs Ambadas Keshav Bajaj court stated that duty there is the corresponding duty of the employer to pay the bonus to employees.

Case Laws

J. K. Ginning & Pressing Factory v. P.O., Second Labour Court, Akola & Others

  • In this case where a factory had employed 10 seasonal workers and the question arose as to their eligibility for bonuses.
  • The Bombay High Court held that the Act does not exclude such seasonal workers, the only requirement for eligibility is that if the criteria as laid down under Section 8 is met with.
  • Therefore, even the seasonal workers were held to be entitled to payment of bonus as per the Act.

Arun Mills Ltd. v. Dr Chandra Parshad C. Trivedi

This court says that “Employees working on a part-time basis are eligible for bonus”.


  • When are the employees disqualified from the payment of the bonus?
  • When did he dismiss from his service?

According to section 9 of the PB act 1965

An employee shall be disqualified from → receiving bonus under this Act, → he is dismissed from service for,


riotous or violent behaviour while on the premises of the establishment,

theft, misappropriation or sabotage of any property of the establishment.

In short, way, when the employee does not perform a duty and do an act that is similar to section 9 of this act then he is disqualified from the bonus.

Case Laws

M/s. Sriram Bearings Limited v. The Presiding Officer, Labour Court, Ranchí & ethers

→It was held that the provisions of Section 9 of the Payment of Bonus Act cannot be given a restricted meaning and the words,

 “an employee shall be disqualified from receiving bonus under the Act” cannot be read so as to mean that the employee shall be disqualified from receiving the bonus of the accounting year only in which he is dismissed because such disqualification is dependent only upon the order of dismissal from service.

No such restriction in Section 9 has been put by the Legislature.

Therefore, if an employee is dismissed from services, he stands disqualified from receiving any bonus under the Act and not the bonus only of the accounting year.


Every employee has the right to take the bonus according to the Payment of the bonus. An employee who is eligible under section 8 of this act then employees is liable to take the bonus. Then this employee has the right to take the bonus.

  • But if do any act which is given under section 9 of the payment of the bonus then employees disqualified from taking the bonus.

Read This Also.

The Payment of The Bonus Act

Share This Content

Leave a Comment