Hi,
I left my company last Dec 2012. At the time of leaving, I had bonus payment due with company, therefore despite receiving the severance check, I did not sign the release letter indicating I have received full and final settlement. My employment contract is with Indian jurisdiction but my special bonus contract has US jurisdiction. My company came back to me in Feb/March 2013 and said they will pay be 60% of bonus, if I sign the release letter. I refused it then because I believed, I deserve full 100% bonus as per the exception documentation, I filed with them. After the discussion in June/July 2013, I indicated I will accept the 60% bonus for sake of keeping good professional relations. However, I indicated to them that please consider the today's exchange rate and account in new financial year starting April 2013. Not accounting in the new tax year and at prevailing exchange rate, causes me almost 15% loss. To my surprise, when they sent me the my Form-16 calculations in May 2013, I found that 60% bonus is already accounted against my income of last Financial Year and taxes were paid to the government. Now, my company is neither paying me the post tax money nor correcting my Form-16. They said, they must deduct the TDS and deposit when the payment is accrued. But, they said we will pay you only if you sign the release letter. Following are the questions:
1.Can my company hold the payment of overdue Bonus (I fulfilled the requirements last year in June 2012 to earn the payment) to have the release letter signed-off ?
2. If releases letter is the condition to release the final payment, is their decision to consider the accrual in last financial year valid ?
3. I am held Sr. management position in the company but, I had no supervisory responsibility (no one reported to me from HR point of view). What laws in India will be applicable, if I were to pursue the legal action ?
4. Whom in government authority, I should approach first.
Thanks,
KP
I left my company last Dec 2012. At the time of leaving, I had bonus payment due with company, therefore despite receiving the severance check, I did not sign the release letter indicating I have received full and final settlement. My employment contract is with Indian jurisdiction but my special bonus contract has US jurisdiction. My company came back to me in Feb/March 2013 and said they will pay be 60% of bonus, if I sign the release letter. I refused it then because I believed, I deserve full 100% bonus as per the exception documentation, I filed with them. After the discussion in June/July 2013, I indicated I will accept the 60% bonus for sake of keeping good professional relations. However, I indicated to them that please consider the today's exchange rate and account in new financial year starting April 2013. Not accounting in the new tax year and at prevailing exchange rate, causes me almost 15% loss. To my surprise, when they sent me the my Form-16 calculations in May 2013, I found that 60% bonus is already accounted against my income of last Financial Year and taxes were paid to the government. Now, my company is neither paying me the post tax money nor correcting my Form-16. They said, they must deduct the TDS and deposit when the payment is accrued. But, they said we will pay you only if you sign the release letter. Following are the questions:
1.Can my company hold the payment of overdue Bonus (I fulfilled the requirements last year in June 2012 to earn the payment) to have the release letter signed-off ?
2. If releases letter is the condition to release the final payment, is their decision to consider the accrual in last financial year valid ?
3. I am held Sr. management position in the company but, I had no supervisory responsibility (no one reported to me from HR point of view). What laws in India will be applicable, if I were to pursue the legal action ?
4. Whom in government authority, I should approach first.
Thanks,
KP