Is My Former Employer Obligated to Pay a Bonus After I Resigned Before Diwali?

Bonus Payment Issue After Resignation

Please note that I worked in a limited company for 3.5 years, and every year at the time of Diwali, the company paid me a bonus as per company policy. However, when I resigned in July 2013 (before Diwali), the company did not pay me the bonus for the 15-month period from April 2012 to June 2013 in my full and final settlement.

Could you please advise if the company is liable to pay me the bonus for that period? Can I take any action regarding this matter?

Regards,
Dinesh Dhall

If it is a bonus payable as per the POB Act, then you are eligible. Otherwise, it depends on the company policy.

Regards,
Varghese Mathew

As per the Payment of Bonus Act, only employees drawing less than or equal to ₹10,000 are covered. The rest are not mandated for the employer to pay. However, if the bonus is included as part of the CTC and paid yearly, then you have the right to seek the bonus.

Please consult with your company before taking any legal action. Try to find a solution amicably.

Regards,

As per the Bonus Act, an employee who has a basic salary of 10,000 or less is eligible for a bonus. All organizations are required to pay bonuses after 5 years of establishment. In the Bonus Act, it is clearly mentioned that an employer has to declare the bonus within 9 months from 1st April.

As per the calculation, you will receive the bonus before the 30th of November.

Understanding Bonus Payments Related to Financial Year

Usually, a bonus is related to the business conducted during the last financial year and is paid during the current Diwali. If you are eligible, you should receive a bonus related to April 2012-March 2013 this Diwali. Next Diwali, your company will pay you the bonus for April, May, and June 2013.

Ensure there is a single line break between paragraphs.

In this case, the employee has resigned. I do not think the company plans to give his bonus. He has not replied to queries regarding his eligibility, so we need to wait for confirmation.