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The Indian Parliament in 1965, enacted a whole new statute known as the Payment of Bonus Act 1965.[3] In Jalan Trading v Mill Mazdoor Sabha 1, the Supreme Courtroom stated that the objective of the Act was to keep up peace and harmony concerning labour and cash by letting staff to share in the institution's prosperity and prescribing the maximum and minimal premiums of bonus, plus the plan of "set-off" and set-on to not merely safe labour's ideal within the share of profits and also to enshrine in legislation the basic principle of "established-off" and "established-on".
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