Question
According to Section 37 of the Code on Wages,
2019 , under what circumstances is an employer entitled to deduct a portion of the bonus payable to an employee?Solution
Explanation: As per Section 37- Where in any accounting year,— (a) an employer has paid any puja bonus or other customary bonus to employee; or (b) an employer has paid a part of the bonus payable under this Code to an employee before the date on which such bonus becomes payable, then, the employer shall be entitled to deduct the amount of bonus so paid from the amount of bonus payable by him to the employee under this Code in respect of that accounting year and the employee shall be entitled to receive only the balance.
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