This particular Act is applicable to every factory wherein ten or more persons are employed and other establishments in which twenty or more persons are employed on any day during an accounting year. The object of the act is to provide certain statutory right to the employees to share the profit of the employer. After the recent amendment of the Act[1], the employees eligible under this Act will be the employees drawing salary a upto Rs.21,000/- per month, and only when he has worked for thirty working days in that financial year. It is notable that the amendment was given a retrospective effect and was made applicable from 1 April 2014. The payment of the bonus will be paid by the employer within 8 months of closing of the financial year. For breach of provisions of the Act, the employer shall be punishable with imprisonment upto 6 months and/or fine not exceeding Rs.1,000.