Is It Legal for My Firm to Withhold My Earned Bonus While I'm on Unpaid Leave?

I am working for a top consultancy firm. I have worked for the entire 2011 in good standing. In 2012, from June, I am on leave without pay. My appraisals were all done, and I was also informed of my bonus amount.

Then, one day before the salary is credited, I get a call from HR that the partners have decided to defer the bonus until I return. None of this is documented, and they communicated it only over the phone. Even when I sent an email asking them to confirm the same via email and point to the relevant policy, they have not replied to my emails.

When I check the policy document, it states that the bonus will be paid only to 'active' employees. I have actually earned my bonus for 2011, and the firm is not paying it.

Is this legal? I am still employed with the firm; it's just that I am on leave without pay. Can I take legal action? Please advise...

There are two types of bonuses: statutory and employer-specified benefits for retaining employees. I presume it is the second one in your case. As an employer, the company is in the process of determining whether you are continuing your services and hence, they may have put it on hold to ensure your return.

However, what you need to know is the status they have assigned to you at the company. According to their records, are you on permitted leave, sudden absence without notice, or unsanctioned but informed leave (in which case you do not have sufficient leave balance but have formally informed them of your leave)? If it is permitted leave, then the employer cannot withhold the bonus and should pay it. If it is either of the other two scenarios, the employer may withhold it under the contention that you may not return, leading to potential compensation for the notice period not served from your end. In such a case, you may not be able to compel payment unless you have decided on your next steps and approach them with your decision.

Please clarify what "active" means to the employer. Does it signify someone who is not on a notice period or not on extended leave as well? Refer to your offer document for clarification on the classification.

Regards,
Dhanalakshmi
Senior Manager - HR