What is Bonus?
According to Webster's dictionary, "Bonus is something given in addition to the wages. It is a boon or gift over and above, what is nominally due to remuneration to the receiver and which is, therefore, something wholly to the good. Bonus is paid in the terms of money to the Employees as gift or reward in addition to their wages
The concept of payment of bonus is not the product of any generosity of the employer but it is one paid in the interest of industrial peace and to make available to every employee a living wage which is generally more than the actual wages.
Bonus is based on the ground that the workman should have a share in the prosperity of the concern for which they have their contribution
Eligibility for Bonus
According to Payment of Bonus Act, 1965 Section 8 of the said Act says that every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year.
Section 9 of the Payment of Bonus Act, 1965 provides disqualification for bonus :
An employee shall be disqualified from receiving bonus under the said Act, if he is dismissed from service for -
(a) fraud; or
(b) riotous or violent behavior while on the premises of the establishment; or
(c) theft, misappropriation or sabotage of any property of the establishment.