Ramesh, an employee with more than one year of continuous service in an establishment was terminated from the job owing to his insubordination. He assured that he will not repeat his misbehaviour but the employer did not

According to Section 9 of the Payment of Bonus Act, 1965, an employee shall be disqualified from receiving bonus under this Act, if he is dismissed from service for-- fraud; or riotous or violent behaviour while on the premises of the establishment; or theft, misappropriation or sabotage of any property of the establishment. 'Ramesh' an employee was terminated from the service owing to his insubordination. He challenged the dismissal after his request for reinstatement was rejected by the employer. After a prolonged legal battle, the court found the termination order as bad and ordered his reinstatement. The High Court held that the employee is eligible to claim bonus because the service of the employee was terminated only by the employer although the employee was prepared to work. Hence, the employee is eligible even for the days of suspension till reinstatement as per provisions of Section 9 of Payment of Bonus Act, 1965 ( Project Manager Ahmadabad ONGC vs Shyam Kumar Sehgal 1955 LLJ, 1863, Gujrat. )