Latin word Gratuitous Gratuity means a lump sum payment made by an employer as the retrial reward for his past service when his employment is terminated

Retiring benefit-Long and Unblemished service

except Shop and establishment covered under SHOPS AND ESTABLISHMENT ACT- 10 or more persons - immediately preceding to 12 months. Once this act applies continue to be governed irrespective of no of persons It shall come into force on such date as the central government may by notification , appoint

Employee does not include- holds post under central or state government Teacher cannot be called as employee due to amendment of this act

Continuous Service means uninterrupted service which may be interrupted on account of sickness , accident , leave , absence from duty without leave(not being treated as break in service),lay-off , strike , lock-out or cessation of work not due to the fault of the employee. Whether such uninterrupted or interrupted service was rendered before or after the commencement of the Act

If an employee is not in continuous service within the meaning of CLASS-1 he shall deemed to be in continuous service. For a period of 1 year : 190 Days, if the employee was employed below the ground in a mine 190 Days ,if the employee was employed in an establishment which works for less than 6 days in a week 240 Days, in any other case

For a period of 6 months : 95 Days , if the employee was employed below the ground in a mine 95 Days , If the employee was employed in an establishment which works for less than 6 days in a week 120 Days , In any other case

Gratuity is payable when there is :- Continuous service of 5 yrs(not necessary incase of death or disablement) Incase of death ,the amount shall be paid to nominee or legal heir Time limit- Within 30 days of gratuity becoming payable Maximum Amount-The gratuity payable to an employee shall not exceed Rs. 10,00,000

It is mandatory where number of employees is more than 500 The registration shall be done in prescribed time & in prescribed manner The insurance shall be taken from LIC or any other prescribed insurance company However , employer of an establishment belonging to or under the control of CG or SG are exempted from the operations of sec.4A.

Every employee, who has completed 1 yr of service , is compulsorily required to make a nomination (Form F) The nomination must be made within 30 days

The employee may distribute the amount of gratuity amongst more than one nomineeIf at the time of making nomination, the employee does not have family, the nomination may be made in favor of any personThe nomination must be made in favor of one or more members of the family(nomination shall be void if it is made in favor of a person who is not a member of his family)

Application can be made by :- An employee who is eligible for payment of gratuity Any person authorized in writing by such employee Nominee of the employee(if the deceased employee had made a nomination) Legal heir of the employee(if the deceased employee had not made any nomination)

If the employer fails to pay the gratuity within the prescribed time (i.e., within 30 days of termination of employment) , the controlling authority is empowered to issue a certificate to the collector to recover the amount of Gratuity The employer shall also be liable to pay Compound interest at such rate as may be notified by CG from time to time The interest shall be paid from the date of expiry of the prescribed period& ending with actual date of payment of Gratuity The interest payable shall not exceed the amount of gratuity payable

OFFENCE PENALTY

Monthly Rated Employee Piece rated employee Employee of a Seasonal Establishment

Last drawn wages x 15/26 x Completed years of Service (incl. a part of year in excess of 6 months)NOTE: Wages = Last drawn Month = Period of 26 Days 15 days wages = Last drawn wages x 15/26

Last drawn wages x 15/26 x Completed years of Service(incl. a part of year in excess of 6 months)NOTE: Last drawn wages = Total wages received during 3 months immediately preceding termination/Days actually worked Last drawn wages shall not include overtime wages

Such an employee shall be paid gratuity at the rate of 7 days wages for each season

PRESENTATION ONTHE PAYMENT OF BONUS ACT, 1965

APPLICABILITY The Act applies to- (a) every factory; and (b) every other establishment in which twenty or more persons are employed on any day during an accounting year.

Establishments to include departments, undertakings and branches

Where an establishment consists of different departments or undertakings or has branches, whether situated in the same place or in different places, all such departments or undertakings or branches shall be treated as parts of the same establishment for the purpose of computation of bonus.

Provided that where for any accounting year a separate balance-sheet and profit and loss account are prepared and maintained in respect of any such department or undertaking or branch, then, such department or undertaking or branch shall be treated as a separate establishment for the purpose of computation of bonus, for that year.

However employees of L.I.C., Universities and Educational institutions, Hospitals, Chamber of Commerce, R.B.I., IFCI, U.T.I. Social Welfare institutions are not entitled to bonus under this Act.

The payment of Bonus Act provides for payment of bonus to persons employed in certain establishments of the basis of profits or on the basis of production or productivity and for matters connected therewith.

ELIGIBIITY FOR BONUS Every employee receiving salary or wages up to RS.10,000 p.m. and engaged in any kind of work whether skilled, unskilled, managerial, supervisory etc. is entitled to bonus for every accounting year if he has worked for at least 30 working days in that year.

Salary Limit (Ceiling of Bonus) Where the salary or wages of an employee exceeds Rs.10,000 per month, the bonus payable to such employee shall be calculated as if his salary or wages were Rs.10,000 per month.

Salary or Wages " means all remuneration (other than remuneration in respect of over-time work, which would, be payable to an employee in respect of his employment or of work done in such employment and includes dearness allowance, but does not include... (i) any other allowance which the employee is for the time being entitled to (ii) the value of any house accommodation or of supply of light, water, medical attendance or other amenity or of any service or of any concessional supply of food grains or other articles;

(iii) any travelling concession. (iv) any bonus (including incentive, production and attendance bonus)... (v) any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the employee. (vi) any retrenchment compensation or any gratuity or other retirement benefit payable to the employee or any ex gratia payment made to him. (vii) any commission payable to the employee.

Computation of number of working daysAn employee shall be deemed to have worked in an establishment in any accounting year also on the days on which :

(a) he has been laid off under an agreement or as permitted by standing orders under the Industrial Employment (Standing Orders) Act, 1946, or under the Industrial Disputes Act, 1947, or under any other law applicable to the establishment;

(b) he has been on leave with salary or wages;

(c) he has been absent due to temporary disablement caused by accident arising out of and in the course of his employment, and

(d) the employee has been on maternity leave with salary or wages, during the accounting year.

DISQUALIFICATION FOR BONUSAn employee shall be disqualified from receiving bonus under this Act, if he is dismissed from service for,-fraud; orRiotous or violent behavior while on the premises of the establishment; ortheft, misappropriation or sabotage of any property of the establishment.

Deduction of certain amounts from bonus payable under the Act

Where in any accounting year, an employee is found guilty of misconduct causing financial loss to the employer, then, it shall be lawful for the employer to deduct the amount of loss from the amount of bonus payable by him to the employee under this Act in respect of that accounting year only and the employee shall be entitled to receive the balance, if any.

MINIMUM AND MAXIMUM BONUS PAYABLE MINIMUM BONUS

The minimum bonus which an employer is required to pay even if he suffers losses during the accounting year or there is no allocable surplus is 8.33 % of the salary during the accounting year, or

Rs. 100 in case of employees above 15 years and Rs 60 in case of employees below 15 years, whichever is higher

MAXIMUM BONUSIf in an accounting year, the allocable surplus, calculated after taking into account the amount set on or the amount set of exceeds the minimum bonus, the employer should pay bonus in proportion to the salary or wages earned by the employee in that accounting year subject to a maximum of 20% of such salary or wages.

TIME LIMIT FOR PAYMENT The bonus should be paid in cash within 8 months from the close of the accounting year or within one month from the date of enforcement of the award or coming into operation of a settlement following an industrial dispute regarding payment of bonus.

However if there is sufficient cause extension may be applied for.

CALCULATION OF BONUS The method for calculation of annual bonus is as follows: 1) Calculate the Available Surplus.

Available SurplusAvailable Surplus = Gross Profit ( deduct) the following :Depreciation admissible u/s 32 of the Income tax Act Development allowance

RIGHTS OF EMPLOYERRight to forfeit bonus of an employee, who has been dismissed from service for fraud, riotous or violent behavior, or theft, misappropriation or sabotage of any property of the establishment.Right to make permissible deductions from the bonus payable to an employee, such as, festival/interim bonus paid and financial loss caused by misconduct of the employee.Right to refer any disputes relating to application or interpretation of any provision of the Act, to the Labour Court or Labour Tribunal.

RIGHTS OF EMPLOYEES

Right to claim bonus payable under the Act and to make an application to the Government, for the recovery of bonus due and unpaid, within one year of its becoming due.Right to refer any dispute to the Labour Court/Tribunal. Employees, to whom the Payment of Bonus Act does not apply, cannot raise a dispute regarding bonus under the Industrial Disputes Act.Right to seek clarification and obtain information, on any item in the accounts of the establishment.

OFFENCES AND PENALTIESFor contravention of the provisions of the Act or rules the penalty is imprisonment upto 6 months, or fine up to Rs.1000, or both.

For failure to comply with the directions or requisitions made the penalty is imprisonment upto 6 months, or fine up to Rs.1000, or both.

In case of offences by companies, firms, body corporate or association of individuals, its director, partner or a principal officer responsible for the conduct of its business, shall be deemed to be guilty of that offence, unless the person concerned proves that the offence was committed without his knowledge or that he exercised all due diligence

THE 1[KARNATAKA]1 INDUSTRIAL ESTABLISHMENTS (NATIONAL AND FESTIVAL HOLIDAYS) ACT, 1963 (Received the assent of the President on the Twenty-sixth day of June, 1963.) (As amended by Act 1 of 1975, 7 of 1985, 16 of 1986 and 28 of 1997) An Act to provide for the grant of national and festival holidays to persons employed in industrial establishments in the 1[State of Karnataka]1. WHEREAS it is expedient to provide for the grant of national and festival holidays to persons employed in industrial establishments in the 1[State of Karnataka]1; BE it enacted by the 1[Karnataka]1 State Legislature in the Fourteenth Year of the Republic of India as follows: 1. Adapted by the Karnataka Adaptations of Laws Order 1973 w.e.f. 1.11.1973

1. Short title, extent and commencement.(1) This Act may be called the 1[Karnataka]1 Industrial Establishments (National and Festival Holidays) Act, 1963. 1. Adapted by the Karnataka Adaptations of Laws Order 1973 w.e.f. 1.11.1973 (2) It extends to the whole of the 1[State of Karnataka]1. 1. Adapted by the Karnataka Adaptations of Laws Order 1973 w.e.f. 1.11.1973 (3) It shall come into force on such 1[date]1 as the State Government may, by notification, appoint. 1. Act came into force w.e.f. 14.8.1963 by notification. Text of the notification is at the end of the Act

THE KARNATAKA INDUSTRIAL ESTABLISHMENTS (NATIONAL AND FESTIVAL HOLIDAYS) ACT, 1963 This act was designed to make formal rules to declare holidays on national and festivals ,like independence day and republic day etc. As the Government of India have requested that appropriate action should be taken to enforce the observance of National and Festival Holidays. as holidays with wages and in view of the great importance attached to the National and some other important festivals, it is considered necessary that our State should have legislation in this behalf.

Amending Act 1 of 1975.Under section 3 of the Mysore Industrial Establishments (National and Festival Holidays) Act, 1963 every employee is allowed two national holidays in a calendar year on the 26th January and the 15th August. It is proposed, as suggested by the National Commission on Labour, to provide for another national holiday on the 2nd October (Mahatma Gandhis Birthday). Under the proviso to sub-section (3) of section 5 of the Act, an employee will not be entitled to be paid any wages for any of the holidays allowed, if he has nor completed period of thirty days continuous service immediately preceding such holiday.

Amending Act 7 of 1985.In his Budget Speech during 1982, the Chief Minister announced Governments intention to declare the 1st day of May as a paid holiday for industrial workers in the State. Amending Act 16 of 1986.The power conferred by section 6 of the Karnataka Industrial Establishments (National and Festival Holidays) Act, 1963 is, at present confined to the appointment of Inspectors for local limits specified by the State Government.It is intended to take power to appoint Inspectors for any given industrial establishment or class of such establishments.

Amending Act 28 of 1997.On the suggestions of the Election Commission, it is proposed to amend the Karnataka Industrial Establishments (National and Festival Holidays) Act, 1963, to make it obligatory on the part of employers to allow paid holiday to workers during general or bye-elections for any parliamentary or Assembly Constituency under the Representation of Peoples Act, 1951 (Central Act 43 of 1951) to enable the employees to exercise their franchise.

Definitions.In this Act, unless the context otherwise requires, (1) day means a period of twenty-four hours beginning at midnight; (2) employee means, (i) any person (including an apprentice) employed in any industrial establishment to do any skilled or unskilled, manual, supervisory, technical or clerical work for hire or reward, whether the terms of employment be express or implied; (ii) any other person employed in any industrial establishment whom the State Government may, by notification, declare to be an employee for the purposes of this Act; (3) employer, when used in relation to an industrial establishment, means a person who has the ultimate control over the affairs of any industrial establishment and where the affairs of any industrial establishment are entrusted to any other person (whether called a managing agent, manager, superintendent or by any other name) such other person;

industrial establishment means, (i) any shop or commercial establishment as defined in clauses (e) and (u) of section 2 of the 1[Karnataka]1 Shops and Commercial Establishments Act, 1961; 1. Adapted by the Karnataka Adaptations of Laws Order 1973 w.e.f. 1.11.1973 (ii) any factory as defined in clause (m) of section 2 of the Factories Act, 1948 (Central Act LXIII of 1948), or any place which is deemed to be a factory under sub-section (2) of section 85 of that Act; (iii) any plantation as defined in clause (f) of section 2 of the Plantation Labour Act, 1951 (Central Act LXIX of 1951); (iv) any other establishment which the State Government may, by notification, declare to be an industrial establishment for the purpose of this Act;

(5) Inspector means an Inspector appointed under sub-section (1) of section 6; (6) notification means a notification published in the official Gazette; (7) wages means all remuneration capable of being expressed in terms of money, which would, if the terms of employment, express or implied, were fulfilled, be payable to an employee in respect of his employment or of the work done by him in such employment, and includes, (i) such allowances (including dearness allowance) as the employee is for the time being entitled to; (ii) the value of any house accommodation, or of supply of light, water, medical attendance or other amenity or of any service or of any concessional supply of foodgrains or other articles; but does not include, (a) any bonus; (b) any contribution paid or payable by the employer to any pension fund or provident fund, or for the benefit of the employee under any law for the time being in force; (c) any gratuity payable on the termination of his service; (d) any sum paid to an employee to defray special expenses entailed on him by the nature of his employment; (e) any travelling concession.

Grant of National and festival Holidays.(1) Every employee shall be allowed in each calendar year, a holiday of one whole day on the 26th January, 15th August, 2nd October and five other holidays each of one whole day for such festivals as the employer may specify, from out of the list of festivals specified in the Schedule appended to this Act in consultation with the trade unions or in the absence of any trade union in consultation with the employees or their authorised representatives in such manner as may be prescribed: Provided that except in the case of Industrial establishments owned or controlled by the Government of India, the number of such other holidays shall be seven including first day of May and first day of November. (2) Whenever there is any disagreement between the employer and employees or the trade Unions concerned as to the festivals to be allowed as holidays during each calendar year the employer or the employees of the concerned Trade Union shall refer the dispute to the Inspector, having jurisdiction over the area in which the Industrial establishment is situated, for his decision and his decision shall be final.

1[SCHEDULE [See section 3] LIST OF FESTIVALS 1. New Years Day 2. Bhogi Festival 3. Uttarayana Punyakala (Sankranthi) 4. Kanu Festival 5. Tyagaraja Aradhana 6. Purandara Dasara Punyadina 7. Garuda Jayanthi 8. Ratha Sapthami 9. Vyasa Poornima 10. Maha Shivarathri 11. Holi Festival 12. Holi Saturday 13. Good Friday 14. Shabh Barath 15. Chandramana Ugadi 16. Souramana Ugadi 17. Sriramanavami 18. Dr. Ambedkar Jayanthi 19. Mahaveera Jayanthi 20. May Day Celebration 21. Chitra Poornima 22. Shebe-E-Quader 23. Jumat-Ul-Vida 24. Sri Ramanujacharya Tiru Nakshatra 25. Basava Jayanthi

26. Ramzan 27. Shankara Jayanthi 28. Buddha Poornima 29. Bakrid 9 30. Varamahalakshmi Vratha 31. Last Day of Mohram 32. Upakarma 33. Sri Krishna Jayanthi 34. Swarna Gowri Vratha 35. Ganesha Vratha 36. Thiru Onam 37. Ananthapadmanabha Vratha 38. Mahalaya Amavasye 39. Mahanavami 40. Vijaya Dashami 41. Id-Milad 42. Thula Sankramana 43. Naraka Chathurdashi 44. Bali Padyami 45. Kannada Rajyotsava 46. Uttana Dwadasi 47. Gurunanak Jayanthi 48. Geetha Jayanthi 49. Shiva Deepa 50. Christmas Eve 51. Christmas 52. Madhva Navami.]

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