The Gazette of India
EXTRAORDINARY
PART II—Section 2
PUBLISHED BY AUTHORITY
No. 47] NEW DELHI, FRIDAY, NOVEMBER 24, 1978/AGRAHAYANA 3 , 1900
Separate paging is given to this Part in order that it may be filed as a separate compilation
LOK SABHA
The following Bill was introduced in Lok Sabha on the 24th Novem-
ber, 1978:—
BILL NO. 160 OF 1978
A Bill to amend the Payment of Bonus (Amendment) Act, 1977
BE it enacted by Parliament in the Twenty-ninth Year of the Republic
of India as follows: —
1. (1) This Act may be called the Payment of Bonus (Amendment)
Act, 1978.
(2) It shall be deemed to have come into force on the 8th day of
Short title and com- mence- ment.
September, 1978.
43 of 1977.
Amend- ment of section 2.
2. In section 2 of the Payment of Bonus (Amendment) Act, 1977 (here- inafter referred to as the amendment Act), after the words and figures "in respect of the accounting year commencing on any day in the year 1976", the words and figures "and in respect of the accounting year com- mencing on any day in the year 1977" shall be inserted.
3. (I) The Payment of Bonus (Amendment) Ordinance, 1978 is here- 3 of 1978.
by repealed.
Repeal and saving.
21 of 1965.
1§22 ¥&t aAZtitfti Oft INDtA EXfSAORDINA|RV [PAitt II—SEC. 2J,STATEMENT OF OBJECTS AND KEASONS
In 1975, a number of substantial amendments were made in the Pay- ment of Bonus Act, 1965 by means of the Payment of Bonus (Amendment) Ordinance, 1975 promulgated on the 25th September, 1975. This Ordinance was later replaced by the Payment of Bonus (Amendment) Act, 1976 (23 of 1976). As a result of these amendments, a minimum bonus of four per cent only was payable in respect of the accounting year commencing on any day in the year 1974 and no minimum bonus was payable in respect of subsequent accounting years if there were no allocable surplus in those years. The banking companies and the Industrial Reconstruction Corpo- ration of India, to which the Act was earlier applicable, were excluded from the purview of the Act. Some other changes were also made.
2. Considering an almost unanimous demand of the working class that the Payment of Bonus Act, 1965 should be amended to provide inter alia fpr payment of a minimum bonus whether there was an allocable surplus or not, the aforesaid Act was amended by the Payment of Bonus (Amend- ment) Act, 1977 (43 of 1977) to provide for payment of a minimum bonus of 8.33 per cent for the accounting year commencing on any day in the year 1976 irrespective of whether there was any allocable surplus. Bank- ing companies and the Industrial Reconstruction Corporation of India were also bound to pay bonus under the Payment of Bonus (Amendment) Act, 1977. Investment allowance was allowed to be deducted as a prior charge, from the gross profits, in the computation of allocable surplus. Provisions for payment of bonus under an agreement on a formula diffe- rent from that outlined in the Act was restored, subject to certain safe- guards.
3. For the accounting year commencing on any day in the year 1977, the Government decided to maintain the status quo. A statement disclos- ing the decision was made in both the Houses of Parliament, during the last session. But it was not found possible for a Bill to be introduced and passed before that session adjourned. With a view to giving effect to the decision to pay bonus before the commencement of the festival season in September-October, the President promulgated the Payment of Bonus (Amendment) Ordinance, 1978 on the 8th September, 1978.
4. The present Bill seeks to replace the aforesaid Ordinance.
NEW DELHI;
The 18th November, 1978. RAVINDRA VARMA.
AVTAR SINGH RIKHY,