Can My Friend Demand Compensation After Being Asked to Leave Without Confirmation?

Dear All, One of my friends is working in a partnership company, and his Date of Joining (DOJ) is 01.08.2010. The company has asked him to leave the job. In the appointment letter, it is clearly mentioned that "your services can be terminated by giving a three-month notice by either side after confirmation, and during the probation period, your services can be terminated without notice." However, as of today, no confirmation letter has been issued. I would like to know what compensation he can demand from the company. Last year, a bonus of 10,000/- was paid to him, and his last basic salary was 9,900/- per month, with a Gross Salary of 14,000/- per month.

Please Clarify My Questions:

1. Can he demand the Bonus Amount as per the amount paid last year (10,000/-)?
2. Can he demand the Three-month Gross Salary as Notice?
3. Can he demand the encashment of 15 Days Earned Leave (EL) balance on gross salary?
4. Can he demand a compensation amount for each service year?

Dear Sir, please calculate and inform me of the amount that should be payable to Mr. Harish, my friend working in Manesar in a manufacturing industry in an official job. Please help.

Regards.

Actually, Mr. Ashok Jangra, there is a little bit of confusion because in your question you didn't clarify the Date of Joining (D.O.J) which is 01.08.2010. First, you should clear it, and then I will reply to your question.

Thanks,
Arun Gahelot
HR & Admin Executive (Gurgaon)
09654299247
Student of G.P. Mandi Adampur

He is entitled to the bonus as per the Bonus Act and as declared by the company, not Rs. 10,000/- as mentioned by you. He is also entitled to a 3-month notice pay, irrespective of whether he received the confirmation letter or not. Additionally, he is entitled to leave encashment due to him.

Retrenchment compensation of 15 days' salary for every year of service he has rendered with the company is a matter of dispute. It needs to be analyzed whether the individual is covered under the Industrial Dispute Act or not.

Thank you.

Best regards

Dear Malik Sir,

Last time the company paid him a bonus amount of 10000/- for the year 2008-09. I would like to know if he can demand the same rate or not. Alternatively, please let me know how such amounts are calculated based on basic or gross pay, such as compensation, notice pay, leave encashment, and all other components, etc.

Thank you.

Dear Friend,

Your letter contains a lot of mistakes. The date 01.08.2010 is yet to come. However, Sh. J.S. Malik has given you the perfectly right answer.

With Best Wishes,

S.K. Srivastava
Officer (HR)

Dear Ashok, I have read your questions. Mr. Malik has suggested very well and correct answers. Now, for the answers you demanded, below are the answers:

1) Last time the company paid him a bonus amount of 10,000 for the year 2008-09. So, I want to know, can he demand the same rate or not? No, he cannot demand the same amount. Bonus is given on a yearly basis and entirely depends upon the company policy. Some companies pay the entire bonus when a person leaves, while some calculate it till the person works. Please read the terms and conditions regarding the bonus part.

2) Leave encashment is one day's basic salary of the person. For example, if he has 10 leaves and his basic salary is 2,000, then he will get 20,000 as part of his leave encashment.

3) Notice pay - he is eligible for 3 months' salary as the company asked him to leave, and it's not a case of resignation.

I hope this information is a bit useful to you.

Regards

Employee Bonus and Leave Encashment Queries

I am Imran from Lahore, Pakistan. I would like to ask if an employee can demand a bonus if the company is profitable. In the appointment letter, it is mentioned that one month's notice is required, and the employee can claim one month's basic salary. Earned leave should be availed as per the law, and earned leave can be encashed if there is a policy for leave encashment.

I have quoted the information as per Pakistan's labor law; there might be some differences in India.

Email: [Email Removed For Privacy Reasons]
Email: [Email Removed For Privacy Reasons]

Dear Imran,

It is very difficult to comment on your query because we do not have an idea about the bonus act of Pakistan. However, I feel a one-month or three-month notice period is a question of contract, i.e., what is written in the appointment letter.

Mr. Malik has suggested very well. He can't demand the same rate as the company provided him last month. According to the Bonus Act, a bonus shall be provided at a minimum of 8.33% and a maximum of 20%.

Firstly, you should check the company policy with the HR Department. It may be clarified in the Appointment Letter how much bonus the company will provide you. After that, he can claim his amount, which may be the same as last year, 10,000.

Note: A person shall not be covered under the Industrial Dispute Act.

Seniors, please correct me if I am wrong.

Thanks and regards,
Arun Gahelot
[Phone Number Removed For Privacy Reasons]
Student of G.P. Adampur