Tamil Nadu Government intends to apply provisions of Payment of Bonus Act on specific establishments in the state; objections/suggestions invited till 29th March, 2020

The Labour and Employment Department, Government of Tamil Nadu (“TN Government”), through a notification in the official gazette of Tamil Nadu dated 29th January, 2020, has proposed to apply the provisions of the Payment of Bonus Act, 1965 (“Bonus Act”) on establishments [as defined by the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 (“BOCW Act”)]* in which less than 20 workers and not less than 10 workers are employed or were employed on any day during the accounting year 2019.

The TN Government intends to enforce the provisions of the Bonus Act on the said establishments from the beginning of the accounting year of that establishment in 2019 and to continue for every subsequent year.

Objections/suggestions on the proposal are invited till 29th March, 2020 and must be addressed in duplicate to the Secretary to Government, Labour and Employment Department, Chennai – 600 009, through the Director of Industrial Safety and Health, 47/1 – Thiru.Vi.Ka. Industrial Estate, Guindy, Chennai – 600 032.

For a detailed read of the notification, please refer to Page 3 of the link below.

* The BOCW Act defines an establishment as any establishment belonging to, or under the control of Government, any body corporate or firm, an individual or association or other body of individuals which or who employs building workers in any building or other construction work; and includes an establishment belonging to a contractor. However, under this definition, establishments are not considered to be those where an individual employs workers in any building or construction work in relation to his own residence (total cost of such construction not being more than Rs. 10 lacs).

Source:  Labour and Employment Department, Government of Tamil Nadu

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