What are the special provision of the payment of Bonus Act, 1965 in respect of new establishment?

Special provisions of the Payment of Bonus Act, 1965 in respect of new establishment:

The Payment of Bonus Act, 1965 makes special provisions with regard to new establishment. The employees of such establishments shall be entitled to be paid bonus under the Act with reference to diffident accounting years as stated below :

In the first five accounting years following the accounting year in which the employer sells the goods or products manufactured by him or renders services from such establishment, bonus is payable only in respect of the accounting year in which the employer derives profit from such establishment. Bonus for this year is to be calculated according to the provisions of the Act, but without applying the provision of set-on and set-off as laid.down in Section 15.

In the sixth accounting year, set-on or set-off is to be made of the excess or deficiency carried forward from the fifth and sixth accounting years.

In the seventh accounting year, set-on or set-off is to be made of the excess or deficiency carried forward from the fifth, sixth and seventh accounting years.

From the eighth accounting year on wards, bonus is to be calculated as in case of any other establishment. [Section 16].

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