Can I Claim a Diwali Bonus After Leaving My Job? Seeking Advice on Labor Laws

I have a little query about bonuses. I have been working in a manufacturing company since October 10, 2010. My last working date in this company was March 7, 2013. My company usually gives bonuses during Diwali. Can I claim my bonus? Is there any labor act like the Payment of Bonus Act, 1965?

Thanks,

From Uttarakhand

As it is not a statutory bonus, you cannot claim the same, and there is no act related to the Diwali bonus.

I am not talking only about the Diwali bonus; I am referring to the bonus that employees normally receive from the company if their salary is below ₹10,001 per month.

As per my knowledge, all the payments due are to be made at the time of the Full and Final Settlement. Kindly check with your HR whether your Full & Final Payment Cheque includes your Bonus Payment or not.
Regards,
Anubhav

If the financial year of your company ends in March and your salary is not more than Rs 10,000 per month, and if you have worked for at least 30 days in the year ending 2012-13, then you will receive a bonus as per the Payment of Bonus Act, 1965.

Regards,
Varghese Mathew
[Phone Number Removed For Privacy Reasons]

I fully agree with Mr. Govind Singh Negi, but I would like to add one point to his answer regarding the payment of bonuses based on company profitability. If a company incurs losses for 5 years, it will still have to pay a bonus after the completion of those 5 years. However, if the company is profitable from the very first year, then the bonus is mandatory from the first year itself.

Additionally, the payment of the bonus will depend on the company's policy for calculating it. As per the act, it will be calculated based on (Rs. 3500 * number of days present) divided by the number of days in a year.

Regards,
Saurabh

Clarification on Bonus Payment Timeline

The time limit for paying a bonus under the Payment of Bonus Act is 8 months from the close of the accounting year, not 9 months as stated by Mr. Govindsingh Negi (Sec 19(b)).

Regards,
Varghese Mathew
[Phone Number Removed For Privacy Reasons]

Yes, Mr. Varghese Mathew is correct in this regard, i.e., it is statutory to pay the bonus by the 30th of November after the completion of the previous financial year. The employer cannot delay up to the final settlement if it is done after November.

Regards,
Abbas. P. S