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Early European employers in India gave "bakhshish," or a gift, to their workers on holidays like "Diwali." They probably did this because they were happy with their high profits. Bonuses are a way for employers to encourage their workers to do their best job. The employees have a legal right to be part of the surplus employers use to pay bonuses. The employer should distribute this part among all workers based on their wages, without considering the dearness allowance or any other allowance. Bonuses motivate employees to work at their most incredible c...

Bonuses are payments given to employees in addition to their base salaries, the additional pay or compensation an employee receives over their usual salary. The company can award bonuses to entry-level employees and senior-level executives. Besides giving bonuses to prospective employees, companies can distribute them to shareholders. What is bonus pay? An employee gets compensation in addition to their base salary. Bonus Pay is a way for companies to show appreciation to employees or teams that have reached crucial goals. The companies give bonuses t...

MSME refers to Micro, Small, and Medium Enterprises and is an essential part of the economy in a developing country like India. These industries are also called SSIs or small-scale industries. MSME registration makes it easier for these businesses to avail benefits that the government gives to MSMEs. As per the MSME Act, a company can acquire MSME registration irrespective of whether it is in the manufacturing or service industry. The Government of India has not made MSME registration mandatory yet. However, getting your business registered under this g...

The Companies Act of 2017 has completely replaced the old Section 185 of the Companies Act 2013, which covers provisions concerning loans to companies' directors. Section 185 of Companies Act 2017, replaces section 185 of Companies Act 2013, outlines the limitations on the company's advance or guarantee of any loan, also those who are permitted to offer such loans, guarantees and securities subject to Act compliance. Section 185 of the Companies Act, 2013 Section 185 of the Companies Act 2013 governs loan grants' requirements and outlines the terms an...

The new industrial set-up led to the rise of the capitalist economy and split the industrial society into workers and capitalists. Capitalists were known to own resources and means of production, while labour sells services. The two groups do not share any common interests. One wants higher wages and better working conditions, while the other takes advantage of the fact that workers don't have much power in negotiations and denies them their rights. Also, the employers want more work done. It is when these conflicting interests clash that Industrial dis...

Any industry continually suffers from disputes. The relationship between employees and their pay is the one that raises the most concerns, and a disagreement between two parties results from their inability to agree. The employer and the employee are the parties involved in the labour dispute. Traditionally, the employer has constantly introduced an excessive self-being in the powerful position, placing the representatives on the lower stepping stool of the general public. This disparity must be corrected so that the representative and the business have...

Businesses with 20 or more employees must, by law, register with the Employee's Provident Fund Organization, consistent with the Employees' Provident Funds and Miscellaneous Provisions Act of 1952. Employees must contribute 12 per cent of their base income to the Employee Provident Fund (EPF) plan. Employers provide every EPFO member with a twelve-digit number called a Universal Account Number (UAN), which makes it easier for workers to access and manage information about their EPF accounts. When workers switch employers, they'll have different Member I...

The gratuity act 2020, or the gratuity new rules 2020, is a law that came into effect on 1st April 2020. This act's amendment ensures that it complies with the new tax laws and other modifications to the Income Tax Act. The law aims to increase the minimum wage in India and provide specific benefits to existing employees. The new law has many provisions affecting your company's operations, and you need to be aware of them. What is gratuity, and why do companies need to pay it? Gratuity is a part of wages paid by employers to their employees as a rewar...

Any type of agreement can be affected by an illegal contract. Serious illegality renders a contract null and void. Legal remedies may be unavailable to one or more of the contracting parties. However, just because a contract is illegal does not mean a court will deny a party or all parties any legal remedy. The court will also consider the steps taken when entering the contract to ensure that neither party engaged in illegal actions during the negotiation phase. What is an illegal contract? A contract is illegal if:-It is forbidden by law, It...