Is It Fair for Companies to Withhold Bonuses Promised in Offer Letters? Let's Discuss!

My friend left his earlier company on 26 March 2013 (DOJ 23.03.2012). A minimum bonus of Rs 3499/- is included in CTC in his offer letter. Now, in his settlement, the company didn't pay the bonus, stating it will be paid in the month of November. Now, he is approaching them, and they are telling him that since his gross was more than Rs 10,000/-, there is no need to pay the bonus. In my opinion, once a bonus is declared as part of CTC, it has to be paid. I advised him to approach with his original offer letter.

Please share your views on this subject.

Regards,
Raghavendra B R

Yes, once the amount is part of the CTC, he is eligible for the same because, at the time of recruitment and structuring the CTC, the management is very much aware that he is out of the Statutory Bonus purview.

Regards,
Kamesh

Bonus Payment Obligation

The ceiling is applicable only in the case of a bonus under the Payment of Bonus Act. From what you have stated, I guess the company has made an offer and committed to paying the bonus. Hence, the company needs to pay the bonus.

Please check the Offer Letter, since there is no minimum bonus offered in CTC. It is the actual figure only, whether it is Rs. 3500/- or Rs. 10,000/- as the case may be. Please confirm back so as to give an appropriate answer to your query.