Statutory Bonus Dilemma: How to Handle Untraceable Ex-Employees' Payments?

Dear All,

I have a query on statutory bonus payment. As per the Payment of Statutory Bonus Act, the employer has to pay a bonus to separated employees as well. However, what is the employer supposed to do when ex-employees are not traceable or not available to collect the bonus amount?

Please help me.

Regards,
Amit

It is always desirable to maintain an "Unclaimed Bonus Account" for disbursing bonuses to those who had left the organization. Official letters intimating the employees to collect the bonus shall be sent. I think declared bonuses should be claimed within 18 months of the closure of the company's accounts. But it may not be possible to set dates or even follow the law of limitation.

Regards,
Madhu.T.K

We are required to deposit unclaimed bonuses with the Labour Welfare Board along with the list of employees and the amount. Employees have to approach the Labour Welfare Board to claim the bonus.

Thank you.