Can someone tell me if an employee leaves his/her company on 9th March 2012 (meaning worked for 11 months and 9 days), should the employee be eligible for a bonus for the year 2011-2012?
An employee leaves his/her company on 9th March 2012 (meaning worked for 11 months and 9 days). The employee is eligible for a bonus for the year 2011-2012. According to the Payment of Bonus Act, if an employee worked more than 30 days in a year, then he/she is eligible for a bonus.
But make sure that the above employee is drawing a salary of Rs. 10,000 or below. If the salary is above Rs. 10,000, the Bonus Act will not be applicable to him/her. In such cases, payment in lieu of bonus will be in accordance with the agreements between management and trade unions/OAs or as per the discretion of the management.
Regards, Abbas.P.S
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