Assurance Insights Volume 2 Issue 4 | February 2017

Introduction

A mere mention of the word "bonus" can bring a smile to an employee . But the burden of cost and legislative compliances that the payment of bonus carries with it, has always spelt double trouble for employers. The payment of bonus is governed by the Payment of Bonus Act, 1965 (henceforth referred to as 'the Act'). Certain crucial criteria's of the Act were recently amended to make way for The Payment of Bonus Amendment Act, 2015 (henceforth referred to as the 'the Amendment Act'). The Amendment Act, on account of these changes, can be viewed as an employee friendly legislation but at the same time it has posed substantial interpretational and legislative complications for employers to decipher.