Short title, extent and application.

1. (1) This Act may be called the Payment of Bonus Act, 1965.

(2) It extends to the whole of India ²[* * *].

(3) Save as otherwise provided in this Act, it shall apply to—

(a) every factory ; and

(b) every other establishment in which twenty or more persons are employed on any day during an accounting year:

³ [Provided that the appropriate Government may, after giving not less than two months’ notice of its intention so to do, by notification in the Official Gazette, apply the provisions of this Act with effect from such accounting year as may be specified in the notification, to any establishment or class of establishments [including an establishment being a factory within the meaning of sub-clause (ii) of clause (m) of section 2 of the Factories Act, 1948 (63 of 1948), employing such number of persons less than twenty as may be specified in the notifica­tion ; so, however, that the number of persons so specified shall in no case be less than ten.]

(4) Save as otherwise provided in this Act, the provisions of this Act shall, in relation to a factory or other establishment to which this Act applies, have effect in respect of the accounting year commencing on any day in the year 1964 and in respect of every subsequent accounting year :

⁴ [Provided that in relation to the State of Jammu and Kashmir, the reference to the accounting year commencing on any day in the year 1964 and every subsequent accounting year shall be construed as reference to the accounting year commencing on any day in the year 1968 and every subsequent account­ing year:]

⁵ [Provided further that when the provisions of this Act have been made applicable to any establishment or class of establishments by the issue of a notification under the proviso to sub-section (3), the reference to the account­ing year commencing on any day in the year 1964 and every subsequent accounting year or, as the case may be, the reference to the accounting year commencing on any day in the year 1968 and every subsequent accounting year, shall, in relation to such establishment or class of establishments, be construed as a reference to the accounting year specified in such notification and every subsequent accounting year.]

(5) An establishment to which this Act applies ⁶[* * *] shall continue to be governed by this Act notwithstanding that the number of persons employed therein falls below twenty ⁷ [or, as the case may be, the number specified in the notification issued under the proviso to sub-section (3)].