(1) Where for any accounting year the allocable surplus exceeds the amount of maximum bonus payable to the employees in the establishment under section 11, then, the excess shall, subject to a limit of twenty per cent, of the total salary or wage of the employees employed in the establishment in that accounting year, be carried forward for being set on in the succeeding accounting year and so on up to and inclusive of the fourth accounting year to be utilised for the purpose of payment of bonus in the manner illustrated in the Fourth Schedule.
(2) Where for any accounting year, there is no available surplus or the allocable surplus in respect of that year falls short of the amount of minimum bonus payable to the employees in the establishment under section 10, and there is no amount or sufficient amount carried forward and set on under sub-section (1) which could be utilised for the purpose of payment of the minimum bonus, then, such minimum amount or the deficiency, as the case may be, shall be carried forward for bfing set off in the succeeding accounting year and 159 G of I Ex.—2.
Calculation of bonus with respect to certain employees.
Proportionate reduction of bonus in certain cases- Computation of number of working days.
Sec on and set off of flllocable surplus.
171 THE GAZETTE Of INDIA EXTRAORDINARY [PART II Spc«al provisions with inspect t* certain •sttblishmenti.
so on up to and inclusive of the fourth accounting year in the manner illustrated in the Fourth Schedule.
(3) The principle of set on and set off as illustrated in the Fourth Schedule shall apply to all other cases not covered by sub-section (1) or sub-section (2) for the purpose of payment of bonus under this Ordinance.
(4) Where in any accounting year any amount has been carried forward and set on or set off under this section, then, in calculating bonus for the succeeding accounting year, the amount of set on or set off brought forward from the earliest accounting year shall first be taken into account.
16. (I) Where an establishment is newly set up, whether before or after the commencement of this Ordinance, the employees of such establishment shall be entitled to be paid bonus under this Ordinance only—•
(a) from the accounting year in which the employer derives profit from such establishment; or
(b) from the sixth accounting year following the accounting year in which the employer sells the products manufactured by him or renders services, as the case may be, from such establishment, whichever is earlier:
Provided that nothing in this sub-section shall, save as otherwise provided in section 33, be construed as entitling the employees of any such establishment to be paid bonus in respect of any accounting year prior to the accounting year commencing on any day in the year 1964.
Explanation I.—For the purpose of this section, an establishment shall not be deemed to be newly set up merely by reason of a change in its location, management, name or ownership.
Explanation It.—For the purpose of clause (a), an employer shall not be deemed to have derived profit in any accounting year unless—
(a) he has made provision for that year's depreciation to which he is entitled under the Income-tax Act or, as the case may be, under the agricultural income-tax law; and
(b) the arrears of such depreciation and losses incurred by him in respect of the establishment for the previous accounting years have been fully set off against his profits.
Explanation III.—For the purpose of clause (b), sale of the articles produced or manufactured during the course of the trial run of any SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 173 factory or of the prospecting stage of any mine or an oil-field shall not be taken into consideration and where any question arises with regard to such production or manufacture, the decision of the appropriate Government, made after giving the parties a reasonable opportunity of representing the case, shall be final and shall not be called in question by any court or other authority.
(2) The provisions of sub-section (1) shall, so far as may be, apply to new departments or undertakings or branches set up by existing establishments:
Provided that if an employer in relation to an existing establishment consisting of different departments or undertakings or branches (whether or not in the same industry) set up at different periods has, before the commencement of this Ordinance, been paying bonus to the employees of all such departments or undertakings or branches irrespective of the date on which such departments or undertakings or branches were set up, on the basis of the consolidated profits computed in respect of all such departments or undertakings or branches, then, such employer shall be liable to pay bonus in accordance with the provisions of this Ordinance to the employees of all such departments or undertakings or branches (whether set up before or after such commencement) on the basis of the consolidated profits computed as aforesaid.
17. Where in any accounting year—
(a) an employer has paid any puja bonus or other customary bonus to an employee; or
(b) an employer has paid a part of the bonus payable under this Ordinance to an employee before the date on which such bonus becomes payable, then, the employer shall be entitled to deduct the amount of bonus so paid from the amount of bonus payable by him to the employee under this Ordinance in respect of that accounting year and the employee shall be entitled to receive only the balance.
18. Where in any accounting year, an employee is found guilty of misconduct causing financial loss to the employer, then, it shall be lawful for the employer to deduct the amount of loss from the amount of bonus payable by him to the employee under this Ordinance in respect of that accounting year only and the employee shall be entitled to recejy* the balance, if any.
Adjustment of customiry or interim bonus against bonus payable under the Ordinance.
Deduction of certain amounts from bonu* payable under the Ordinance.
I 7 4 THE GAZETTE OF INDIA EXTRAORDINARY [PART II Time-limit for payment of bonus, Application of Ordinance to establishments in public sector in certain cases.
Recovery c{ bonus due from an employer.
19. All amounts payable to an employee by way ol bonus under this Ordinance shall be paid in cash by his employer—
(a) where there is a dispute regarding payment of bonus pending before any authority under section 22, within a month of the settlement or award in respect of such dispute;
(b) in any other case, within a period of eight months from the close of the accounting year:
Provided that the appropriate Government or such authority as the appropriate Government may specify in this behalf may, upon an application made to it by the employer and for sufficient reasons, by order, extend the said period of eight months to such further period or periods as it thinks fit; so, however, that the total period so extended shall not in any case exceed two years.