Payment of Bonus with retrospective effect from 1st April 2014

[Ashwani Rustagi]

The amended Payment of Bonus Act was notified on 1st January, 2016 and was intended to kick in with retrospective effect from 1st April 2014. The Act provides a statutory right to employees of an establishment to share the profits of his/her employer.

Whereas various High Courts have stayed the retrospective implementation of the recently amended Payment of Bonus Act, please advise update status in the State of Haryana. Do we need to pay arrear of bonus with retrospective effect 01-April-2014, if yes, by when this has to be paid.

Regards,

Ashwani Rustagi

9810013724

AI Summary

Retrospective bonus liability suspended as courts stayed retrospective implementation, employers may defer payment of bonus arrears pending final adjudication.
Amendments to the Payment of Bonus Act were made retrospective to 1 April 2014, but multiple High Courts have stayed that retrospective operation. Where an absolute stay is operative over an establishment, employers may defer payment of bonus arrears until the stay is vacated or final adjudication; employers should confirm whether a stay covers their territory before paying arrears and monitor further judicial developments.