Payment of Bonus Act, 1965
36. Power of exemption
If the appropriate government, having regard to the financial
position and other relevant circumstances of any establishment or class of
establishments, is of opinion that it will not be in public interest to apply
all or any of the provisions of this Act thereto, it may, by notification in
the Official Gazette, exempt for such period as may be specified therein and
subject to such conditions as it may think fit to impose, such establishment or
class of establishments from all or any of the provisions of this Act.
Comment : Bonus is treated as deferred wage. When
the Parliament in its wisdom has enacted such a beneficial piece of social
legislation which already guarantees minimum statutory bonus to employees
governed by it, if the ir employers are to be allowed
to earn exemption from the sweep of such a beneficial legislation which would
ipso facto adversely affect entire class of their employees, the conditions for
exercise of such power of exemption have to be strictly and objectively
fulfilled by the repository of such a drastic power. A statutory right already
accrues to employees under the Act. If the establishment employing such workmen
or employees is desirous of depriving the statutory right of minimum bonus to
its employees it may move the appropriate Government for exemption under
Section 36 of the Act. State of T.N., Appellant v. K. Sabanayagam ,
AIR 1998 SUPREME COURT 344