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Section 36 – The Payment of Bonus Act, 1965

The Payment of Bonus Act, 1965


36. Power of exemption –


If the appropriate Government, having regard to the financial position and other relevant circumstances of any establishment or class of establishments, is of opinion that it will not be in public interest to apply all or any of the provisions of this Act thereto, it may, by notification in the official Gazette, exempt for such period as may be specified therein and subject to such conditions as it may think fit to impose, such establishment or class of establishments from all or any of the provisions of this Act.




The Court has jurisdiction to consider whether the powers under Section 36 has been properly exercised by the Government.


Consideration of the profits for one previous year cannot amount to consideration of “the financial position” of an establishment within the terms of Section 36 of the Bonus Act. (M/s, Fashan Electric Dry Cleaners v. The Government of A.P. (1977) 1 An. A.W.R.27).



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The Payment of Bonus Act, 1965


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