As per govt policy if anyone has worked for 30 days in a year he/she will be eligible for a Bonus. What if the company has a policy just to pay off the bonus of the last financial year (if not paid) during FnF of any employee? Can employee claim his/ her bonus because as per govt law he is eligible but as per co. policy, he can claim onus of last financial year (if not paid)?
From India, New Delhi
From India, New Delhi
Dear Priyansi,
Your narrative is not clear to me. Bonus for any accounting year can be determined only after balancing the accounts of the establishment at the close of the accounting year. If the exit takes place in the middle of the accounting year, previous year's bonus, if not paid, alone can be included in the F&F SETTLEMENT as soon as on the eve of exit. Current year's bonus would become payable afterwards on its determination only and not at the time of exit. But, the exit of the employee in the middle of the accounting year cannot disentitle him for bonus, if he is otherwise qualified and if it is what exactly the Company's policy means as you have mentioned, it is illegal.
From India, Salem
Your narrative is not clear to me. Bonus for any accounting year can be determined only after balancing the accounts of the establishment at the close of the accounting year. If the exit takes place in the middle of the accounting year, previous year's bonus, if not paid, alone can be included in the F&F SETTLEMENT as soon as on the eve of exit. Current year's bonus would become payable afterwards on its determination only and not at the time of exit. But, the exit of the employee in the middle of the accounting year cannot disentitle him for bonus, if he is otherwise qualified and if it is what exactly the Company's policy means as you have mentioned, it is illegal.
From India, Salem
I agree with Umakanthan Sir. I just repeat and add to the discussion as under.
Left and resigned employees who had salary less than 21000 and served more than 30 days in that financial year are entitled to bonus. You cannot deny them bonus as they are statutorily eligible to receive the same.
If I am mistaken not, there is a provisions in Rules 1965 under the POB Act 965 to claim the bonus by ex-employees on its declaration by the employer.
Good employers have policy to inform the left / resigned employees to claim the bonus due to them on its declaration.
If the bonus is not claimed by left / resigned employee, the same shall be transferred to unpaid accumulation account and deposited to Labour Welfare Fund of the State.
From India, Mumbai
Left and resigned employees who had salary less than 21000 and served more than 30 days in that financial year are entitled to bonus. You cannot deny them bonus as they are statutorily eligible to receive the same.
If I am mistaken not, there is a provisions in Rules 1965 under the POB Act 965 to claim the bonus by ex-employees on its declaration by the employer.
Good employers have policy to inform the left / resigned employees to claim the bonus due to them on its declaration.
If the bonus is not claimed by left / resigned employee, the same shall be transferred to unpaid accumulation account and deposited to Labour Welfare Fund of the State.
From India, Mumbai
#Subject List: f&f settlement company policy City-India-New-Delhi Country-India financial year labour welfare fund
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