National Commission on Labour (1967)||
17.17 The dictionary meaning of the word 'bonus' is 'something to the good', especially extra dividend to the share-holders of a company', 'distribution of profits to insurance policy-holders' or 'gratuity to workmen beyond their wages'. It is the, last meaning of the word which has acquired significance for labour management relations in India. Till recently, bonus was regarded as an ex gratia payment made by the employer to his workers to provide a stimulus for extra effort by them in the production process on occasions it also represented the desire of the employer to share with his workers the surplus generated by common endeavour and enterprise. From this limited connotation of the word, we have traveled a long way to reach the stage of enactment of the Payment of Bonus Act, 1965, which makes this annual payment obligatory on the employer.