4.

Balance Sheet to be sent to the labour Office:

A.
General Manager

Balance sheet and profit and loss

Submit to the Labour Office

Within 6 Month after the

expiry of fiscal year

B.
Complain is received along with proof that the
BS contain false provision

Exercise all the power relating to inspection and calling for

explanation as vested in the appropriate department

5. Establishment which makes profit to pay bonus:-

 Every establishment which makes a profit shall allocate an amount equal to

10% of the net profit made during a fiscal year for payment of bonus to its
employee.
  The following amount shall be debited from the net income Tax act while
determining the net profit made during any fiscal year by an establishment
under sub section 1.
1. Amount set aside for providing quarters to employee under subsection
1.
2. Amount of bonus paid in excess ender sub section 3 of section 11.
 Notwithstanding anything contained in subsection, the percentage and other
matter relating to bonus payable by an establishment owned by GON shall
be as decided by the Government of Nepal.

6. Circumstances in which bonus shall be paid:

 Every employee who works for half the period during which work has to be
done during any fiscal year may be paid bonus under this act.
Provided that, any bonus shall not be paid to casual employee who works as
a substitute for another.
 For this purpose of subsection 1, the following period too shall be calculated
as the period which an employee has worked.
1. The period for which he has remained in reserve.
2. The period for which he has taken leave with pay.
3. The period during which any employee has remained incapable of
working as a result of any accident on the course of the work of the
establishment.

7. Amount payable as bonus and calculation thereof:

 The percentage of the amount of the bonus which may any employee may be
paid in a fiscal year shall be calculated by the General Manager according to
subsection 2.
 For the purpose of calculating the percentage of the amount of the bonus to be
paid to the employee under subsection 1, the total amount allocated for payment
of bonus for any fiscal year in any establishment shall be multiplied by 100, the
product shall be divided by the employees who are entitled to bonus during the
fiscal year, and the final product shall be considered the percentage of the
bonus.
  Notwithstanding anything contained in subsection 2, the amount of bonus to be
to any employee shall not exceed the following
 Two (2) times of  the minimum remuneration fixed by the GoN ( i.e. Below 30000),Amount
equivalent to 8 (eight) months’ remuneration/wage.
 More than two (2) times the minimum remuneration determined by the GoN (i.e. Above
30000), Amount equivalent to 6 (six) months’ remuneration/wage

8. Restriction on payment of bonus:

Notwithstanding anything contained in subsection 6, any employee who has been
punished for any of the following actions, or who has been dismissed from
services, shall not be entitled to any bonus under this act.

Provided that nothing contained in this Section shall be deemed to have been
prejudiced (biased) the payment of bonus for the preceding the action which is so
punishable.

 Theft of the property of the establishment, or any damage to its property,

 Illegal strike or instigation to others to start such a strike.
 Rioting or violation of discipline.

Restriction on payment of bonus

perty of the establishment, orIllegal

any damage
strike or
to instigation
its propertyto others to start such
Rioting
a strike
or violation of disclipine
9. Categories of Bonus and Time-Limit for payment.
 Bonus payable under this act shall be paid in cash.
 Bonus shall be paid within eight month after the expiry of the fiscal year.
 In case the General Manage submit an application to the Labour Office
mentioning the reason why bonus cannot be paid within time-limit
mentioned in the subsection 2, and in case such reason are considered
proper, the labour office may extend the time-limit for a maximum period of
three months, or permit the payment of two year bonus in one lump sum
during the next fiscal year.

10. Payment of bonus to heir or member of family.

11. Bonus may be paid in advance:

 In case bonus cannot be paid by any establishment within the period
mentioned in section 9 by the reason of its inability to forward its balance
sheet and profit and loss account within the time limit mentioned in sub
clause 1 of section 4, or of the appropriate Labour office in respect to the
balance sheet such establishment shall pay bonus amounting to minimum of
five percent of the net profit on the basis of a rough calculation.
  In case the amount of bonus paid under sub section 1 is found to be less than
amount decided to be paid after the balance sheet and the profit and loss
account have been taken, the shortfall shall be calculated and paid to the
employee.
 In case the amount of bonus paid under sub section 1 is found to be higher
than the amount subsequently decided to be paid as bonus, the excess
amount shall be recovered during the next fiscal year.

12. Deduction of bonus:

Any employee who has not worked for all the working days of the fiscal year shall
receive bonus only the amount left after deducting the amount due for the number
of days in which he has not worked, subject to section 6.

12a. Bonus during the period of illegal strike:

In case any employee launches any illegal strike in any establishment, bonus for
the period of such illegal strike shall be proportionately deducted from the total
amount of bonus payable to him, and he shall be paid bonus for the remaining
period only.

13. Welfare fund:

 Section 13 of the Bonus Act provided that seventy percent (70%) of the amount remaining after
distribution of bonus should be deposited in the “welfare fund established in accordance with
Section 37 of the Labor Act, 2048 (1992)”.  The provision of the Section 13 has been amended.

1.2.2. The amended provision provides that the amount should be deposited with the “welfare
fund established in accordance with the prevalent laws of Nepal”. However, such amendment
does not have material effect on the deposit of the surplus amount after distribution of bonus.

1.2.3. The reference of the Labor Act used in various places in the Bonus Act has also been
amended in the context of change in the Labor Act.
14.

15.

16. Settlement of bonus:

 In case any dispute arises between the employee and the General Manager
on the issue of bonus to be paid under this act, the Labour Office shall
summon both side and resolve the dispute through dialogue
 In case the dispute fails to be resolved through dialogue under subsection1,
the Labour Office may have the concerned establishment and the employee
submit the necessary documents as well as accounts and records, and take a
decision on the basis thereof.
 Any side which is dissatisfied with the decision taken by the Labour Office
under subsection 2 may appeal to the labour court within 35 days from the
date of receipt of notice thereof, and the decision taken by the Labour Court
shall be final,

20. Penalties:
 Any person who violates the order issued under this act or the rules framed
hereunder may be punished by the Labour Department with a fine not
exceeding Rs. 5000.00

21. Appeal:
Any side which is dissatisfied, may appeal to the Appellate court within 35
days from the date of receipt of a notice thereof.

23. Responsibility of General Manager:

In case any establishment is to be punished for any offense punishable under
this act, such punishment shall be inflicted on the person who was
functioning in the capacity of the General Manager at the time when such
offence was committed.
Provided that a General Manager who is able to prove that such offence was
committed without his knowledge or consent shall not be liable to
punishment under this section.