Totapara Tea Estate – Context under the Payment of Bonus Act, 1965

 

Totapara Tea Estate – Context under the Payment of Bonus Act, 1965

1. Classification:

   • Totapara Tea Estate is an industrial establishment under the Act because tea plantations fall under “industrial undertakings.”

   • Employees include:

     • Tea garden workers (plucking, field staff)

     • Administrative staff

     • Supervisory staff

2. Applicability of the Payment of Bonus Act, 1965:

   • The Act applies if the estate employs 20 or more employees.

   • Eligible employees are those:

     • Who worked ≥30 days in the accounting year

     • Earning ≤₹21,000 per month

3. Bonus Calculation for Tea Estates like Totapara:

   • Minimum Bonus: 8.33% of annual wages

   • Maximum Bonus: 20% of annual wages (depending on profit and allocable surplus)

   • For seasonal or casual workers, calculate proportionally based on days worked.

4. Special Considerations for Tea Estates:

   • Tea estates often have seasonal harvesting cycles, so profits may vary yearly.

   • Unionized labor agreements may provide bonus higher than statutory minimum.

   • Accurate record-keeping is essential for audits and compliance:

     • Employee attendance

     • Wages/salary

     • Bonus disbursement

5. Compliance Steps:

   • Maintain a Bonus Calculation Sheet for all eligible employees.

   • Pay bonus within 8 months of financial year-end (by 31st March).

   • File returns or keep records as required under Section 7 of the Act.