Is Paying Three Salaries Instead of a Bonus Legal? Seeking Clarity on Labour Laws

Hi seniors,

Our management has decided to pay three salaries to all employees regardless of their date of joining or minimum or maximum bonus eligibility as an ex-gratia payment, not as a bonus. Is this an offense? Our company defines a bonus as profit sharing, not as a gift. Therefore, they consider this an ex-gratia payment according to our company policy. Can the Labour Inspector under the Bonus Act penalize our company?

Please reply.

Regards,
Rashid

There is nothing illegal in it. If a company wishes to pay more to its employees, it is purely the company's wish. The bonus inspector has nothing to do with it.

Ravi

Dear Rashid,

Are you in Dubai or India? Your location shows Dubai. Sorry, we have no idea about the labor rules prevailing there. You may seek the help of local consultants or legal experts in Dubai.

Regards,
Chandru