Aparajitha Corporate Services Private Limited, the country’s no.1 company for Compliance, today organized a ’60 Minutes Compliance’ webinar to discuss about the Bonus and Gratuity payment in relation to the current scenario of the economic slowdown.
The webinar was aimed at explaining the how the concept of bonus and gratuity payment has been impacted during this stint of Work from Home as a result of the ongoing pandemic under the Payment of Bonus Act, 1965 and the Payment of Gratuity Act, 1971 which act as the legislative law providing these provisions. It also highlighted how the current pay structure had been realigned with the help of salary cuts and incentive relaxations to boost the economy amidst this crisis period.
Speaking on the occasion, Mr. Nagaraj Krishnan, Managing Director, Aparajitha Corporate Service Private Limited said, “The concept of bonus and gratuity act became a statutory payment governed by the provisions of Payment of Bonus Act, 1965 and Payment of Gratuity Act, 1971 and are important to labor laws that recognize the rights and value of an employee. However, the disruption and its effects on industries and work due to this pandemic have seen many several states announce drastic relaxations to certain labor laws and have also come out with notifications and ordinances containing exemptions from compliance with a few labor laws.
While these relaxations give more flexibility to employers and business owners to sustain losses during this crisis period, it threatens the social security and rightful income of the employee. Although the situation is bad and recovering from it might take a long time. It is important for the workforce to know what is happening from a Compliance Point of View so that they are not taken advantage of. ”
The webinar covered different aspects of Bonus and Gratuity payment…
- What legislative laws provide these provision and how denying these can be a violation of labor laws
- The various Internal compliance process to be handled related to the conditions, services put upon employees to be eligible to avail these provisions
- How to calculate the payment in reference to the acts.
- How these acts have been impacted by the current changes in the economy
- When and if these relaxations will be reversed post-pandemic.
The webinar, which saw participation by 1185 individuals comprising of HR professionals and mid & senior level personnel across various industry sectors, was moderated and addressed by Mr. K. Varadan, Chief Consultation Officer, Aparajitha Corporate Services Private Limited