Is company liable to pay bonus to them & ex-Gratia to employees who have left the organisation? - CiteHR
Pbskumar2006
General Manager-hr
R.N.Khola
Labour Laws & Ir
Rajanassociates
Legal Counsel
M VINOTHKUMAR
Hr Executive
Abbasiti
Assistant Engineer, Indian Telephone Industries,
Malikjs
Gm (hr)
Yagniah
Legal, Personnel Admn. And Hr
Gandi_sudhakar
Commercial & Operations
+4 Others

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Hi Friends, Pls let me know the rules governing the bonus act in connection with the employees who have worked for some time in the last financial year but were not associated with the company on the date of announcing the bonus. Is company liable to pay bonus to them & ex-Gratia to employees who have left the organisation?
PLS help me out with relevant sections of the act.

If their salary is Rs. 10,000 or below for any part of the financial and a minimum attendance of 30 days for that period, then all employees including left out are eligible for bonus. Regarding other cases, it depend on your organisational policies. . . . . . . . . . . . Abbas.P.S
If the past employee has worked for 30 or more days in the establishment, he is entitled to bonus. jpratap
dear
Bonus and exgratia both are seprate things and should not be clubbed.If an employees Basic was less than 10 k per
month than he is entitle for bonus and he has to be paid even left the organisation.If employees basic were more than 10 k than you decide whether you want to pay him exgrtia or not as, there is no law for exgratia payment

Hi Mr.Mallik
what about if a employee who has left the organization, he was drawing a basic more than 10 k in his increment letter we have mentioned he will be entitled for exgratia, in this case do we have give him exgratia or not ?
Raj

Dear G.Sudhakar,

According to section 8 every employee shall be entitled to be paid by the employer in an accounting year, bonus in accordance with the provisions of this act, provided that he had worked in the establishment for not less than 30 working days in that year. In accordance with section 19 we are to pay bonus within the time limit prescribed which may be read as under:

19. Time-limit for payment of bonus. — All amounts payable to an employee by way of bonus under this Act shall be paid in cash by his employer —
(a) where there is a dispute regarding payment of bonus pending before any authority under section 22, within a month from the date on which the award becomes enforceable or the settlement comes into operation, in respect of such dispute;
(b) in any other case, within a period of eight months from the close of the accounting year:
Provided that the appropriate Government or such authority as the appropriate Government may specify in this behalf may, upon an application made to it by the employer and for sufficient reasons, by order, extend the said period of eight months to such further period or periods as it thinks fit; so, however, that the total period so extended shall not in any case exceed two years.
With Regards,
R.N.Khola



Yes. Mr.G.Sudhakar we are binded to pay bonous to the employee who work with the organisation within the period for the bonus is declared.
But the employee should work with the orgnisation at least for 30 days in year for which the bonus is announce.
Regards,
Madhura

dear in this case if exgrtia is part of CTC than you should pay it.Generally no one writes in increment letter about exgratia.
Suppose one Non-Supervisory employees are resigned and his basic salary is more then Rs 10,000/=, in that case also we need to pay him his Bonus/exgrasia ? Is there any low for them to pay ? Normally they are not cover under bonus act as they are received more then Rs.10,000/= as a basic.
Dear friends
Section 8 of the Payment of Bonus Act says that every employee shall be entitled to be paid by the employer in an accounting year, bonus in accordance with the provisions of this act, provided that he had worked in the establishment for not less than 30 working days in that year.
And the Act further says that the Bonus for the preceding accounting year( t April to 31st march) shall be paid before expiry of eight months from that Accounting year. It has become a custom that all establishments pay Bonus to their employees before Dasara / Deepavali.
To illustrate, an employees who worked for a period of 30 working days in an accounting year i.e., from 1st April 2009 to 31st march 2010, such employees is eligible for bonus for that accounting year i.e., payable before Dasara / Deepavali 2010, whether he is in service or left the organisation.


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