M/s. Nuddea Plantations Limited with the Payment of Bonus Act, 1965 in the Indian context:

 

M/s. Nuddea Plantations Limited with the Payment of Bonus Act, 1965 in the Indian context:

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1. The Payment of Bonus Act, 1965 (POBA) – Overview

The Payment of Bonus Act, 1965 is a central legislation that ensures employees of certain establishments receive a minimum bonus based on profits or productivity. Key points:

• Applicability:

  • Establishments employing 20 or more employees (recent amendments may consider 10 in some states).

  • Includes industrial and commercial establishments, which can cover plantations like Nuddea Plantations Limited.

• Eligible Employees:

  • Employees who have worked at least 30 days in a financial year.

  • Employees earning ₹21,000 per month or less (as per amendment in 2016; earlier it was ₹10,000).

• Bonus Calculation:

  • Minimum: 8.33% of salary/wages earned in the accounting year.

  • Maximum: 20% of salary/wages, depending on available allocable surplus of the company.

• Payment Period:

  • Bonus must be paid within 8 months from the end of the financial year (i.e., by 31st March).

• Penalty for Non-Compliance:

  • Employer can face fines or imprisonment under Sections 17 and 18 of the Act for default.

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2. Applicability to Nuddea Plantations Limited

Nuddea Plantations Limited, being a plantation company, falls under industrial establishments. Therefore:

1. Employees Eligible:

   • Tea garden workers, administrative staff, and field workers earning under the specified wage ceiling.

   • Seasonal workers may also qualify if they meet the minimum 30-day employment criterion.

2. Profit Calculation:

   • Bonus is based on profits of the company for the accounting year.

   • If the company shows no profit, a minimum statutory bonus (8.33%) is still payable.

3. Compliance Obligations:

   • Maintain records of wages, employees, and payments of bonus.

   • Ensure bonus is paid within the statutory time.

   • File necessary returns if required under the Act.

4. Special Considerations for Plantations:

   • Some plantations have a seasonal business cycle, which may influence the calculation of allocable surplus for bonus purposes.

   • Unionized labor agreements may set bonus rates higher than statutory minimum.

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3. Key Sections of POBA Relevant for Nuddea Plantations Limited

Section	Relevance
3	Payment of minimum and maximum bonus to employees.
4	Computation of allocable surplus from profits.
5	Disqualification from bonus (if employee dismissed for fraud, etc.).
7	Maintenance of records by the employer.
15	Penalties for default in payment.

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4. Practical Implications

For Nuddea Plantations Limited:

• Must calculate annual profits and ensure eligible employees receive bonus between 8.33% and 20%.

• Should document and preserve records of wage payments, employee attendance, and bonus disbursements.

• Regular audits or internal checks can prevent non-compliance penalties.