Ques. for Mains - Q1. In context with boosting India's economy there is a dire need to maintain a balanced approach towards the welfare of labourers.
The Union Minister of Labour & Employment upon industry and trade unions to strike a balance in dealing with labour issues. Chairing a tripartite consultation meeting on Amendment to the Payment of Bonus Act, 1965 and said that there is a need to maintain a balanced approach towards the welfare of labourers.
Government is committed to protect the interests of labourers so that they remain at the heart of country’s growth story. We need to increase the purchasing power of the labourer. When production from industrial units increase, the purchasing power of the labourer also increases.
The Payment of Bonus Act was enacted in the year 1965 (25th September, 1965) to provide for the payment of bonus to persons engaged in certain establishments on the basis of profits or on the basis of production and for matters connected therewith. The Act is applicable to whole of India.
The Payment of Bonus Act, 1965 provides for payment of bonus to the employees of ‘factories’ and ‘establishments’ employing 20 or more persons, excluding some categories of employees in Life Insurance Corporation, Seamen, Dock Workers, University employees, as per section 8 of the Act, every employee shall be entitled to be paid by his employer in accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in establishment for not less than thirty working days in that year.