Seeking Advice: How to Claim Unpaid Bonus from a Previous Employer?

Dear sir,

I am Pradeep Jadhav, presently working in "Khandelwal Laboratories Pvt. Ltd., Mumbai. Sir, I want some guidelines from you. I worked in "Dosch Pharma Pvt. Ltd, Mumbai from 1st Jan. 2005 to 31st June 2006. However, for better prospects, I resigned from the same on 1st July 2006 with prior notice. In October 2005, I received a bonus of 3 months from 1st Jan 2005 to 31st Mar 2005. I have resigned from the organization as per the company's conditions.

Until now, the company has not reimbursed my bonus amount from 1st April 2005 to 31st March 2006. I have reminded the HR Manager, Commercial Manager, and General Manager multiple times regarding this issue. They mentioned that bonuses were not paid to former employees and that the bonus conditions were not stated in my appointment letter.

I request your guidance on this matter.

Thank you.

Hi,

If you have worked in the financial year 2005/2006, even for 30 days, and if you are covered by the definition of an employee under the act, then the company has to pay you the bonus for the period you have been employed in the year 2005/2006.

There is no need to mention anything in the Letter of Appointment, nor is any promise required to be made by the company. The Payment of Bonus Act 1965 is clear, and the company must pay.

The company has 240 days from the close of the financial year to declare and pay the bonus. Many companies declare and pay the bonus around Dussehra/Diwali. Non-payment of bonus to ex-employees/left employees is blatantly wrong if any of them has worked for more than 30 days during the concerned financial year.

Since you are an HR person, you may draft a suitable letter and send it to the company by Registered Post-Ack. Due and await their response. You must cite relevant provisions of the act in the letter. If you need help in drafting the said letter, please contact!

Relax, if you are entitled, the company cannot avoid paying you the bonus. It would be your rightful due!

Cheers & Regards,

Samvedan

June 18, 2007

What was your monthly salary?

What was the manpower employed in the company?

Whether the company was 'Covered' under the provisions of The Payment of Bonus Act?

The Payment of 'Statutory' bonus is compulsory and NOT at the discretion of the employer. If you have worked more than 30 days in the accounting year, you are certainly entitled to receive Bonus for that accounting year at the same rate at which the same is paid to present employees.

The Payment of Bonus Act does not make any difference between present employees and ex-employees to the extent of % of bonus.