Hi, is there any procedure reg. non payment of bonus when company is in loss, also kindly clarify whether an employee who is under probation is eligible for Bonus and EL if he leave the company with in the probation period. If I am not wrong as bonus act, if any employee works more than 30 days in a financial year is eligible for Bonus. Kindly advise me on the above points, as i need to submit a report.
Thanks N Regards,

From India, Hyderabad
Ms Sreedevi,
The Payment of Bonus Act, 1965 has given exemption to the newly set up establishments from payment of bonus for first five years unless they derive profit from business in between.
You are right that if an employee works for 30 days in an accounting years, he shall be eligible for bonus. All such employees are covered except an apprentice.
EL encashment is given to regular employees preferably who resign or retired. Since you are quitting the company during your probation period , you are not eligible for the same but again it depends upon the discretion of the management.
BS Kalsi,
Member Since August, 2011

From India, Mumbai
Dear Ms.Shreedevi,
I have divergent views on encasement of EL to a person on probation.
Kindly do go through the Shop and Establishment rules of your state-- in case your organisation falls under it . Encashment is also applicable to an employee who resigns.
In Delhi-- there is no mention that employees on probation will not be given EL encashment.

From India, Delhi
Dear all,
Probationer being employee of your company like others or technically a worker under Factories Act is eligible to bonus and also entitled to EL on pro-rata basis. Its different thing that his account got sqarred up early.
RDS Yadav

From India, Delhi

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views using the reply box below. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone.

Please Login To Add Reply →

About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2021 CiteHRô

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server