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    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?
    A If the employer has paid a part of the bonus before the due date Correct Answer Incorrect Answer
    B If the employee has not completed a full year of service with the company Correct Answer Incorrect Answer
    C If the employee is on leave during the accounting year Correct Answer Incorrect Answer
    D If the employer has a financial loss in that year Correct Answer Incorrect Answer
    E If the employer has not paid any puja or customary bonus to the employee in that accounting year Correct Answer Incorrect Answer

    Solution

    Explanation: As per Section 37- Where in any accounting year,тАФ (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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