How Can I Challenge My Company's Bonus Policy When It Seems Unfair?

I am working as an HR Assistant in a company. My company has not paid the bonus. As per my knowledge regarding the Bonus Act, if an employee's earnings are less than or equal to 10,000, they are eligible for a bonus. Kindly help me to protest against my company's laws and regulations.

Regards

Some companies have a policy not to give bonuses to employees, but it is totally wrong. The company is obligated to provide bonuses and also submit returns in Form No. CD to the Labor office. If you do not receive a bonus, you can file a complaint with the labor office.

You can always protest. There are legal provisions for that. However, when you do that, you are definitely going to be kicked out of your job. If that does not matter to you, then do everyone a good turn by forcing the company to give a bonus. Unless, of course, there is a union that is going to support you when you get the sack.

Understanding the Payment of Bonus Act 1975

As per the Payment of Bonus Act 1975, if a company has been incorporated for more than five years, it is required to file a bonus return using Form A, Form B, Form C, and Form D. The bonus should be 8.33% of the basic salary earned, or a maximum of 20% of the basic salary earned.

You need to explain this statutory law to the management.

Regards,
Vineet

If any employee is drawing a salary of ₹10,000 per month, then they will be eligible for a bonus or ex-gratia. How can I calculate the bonus and ex-gratia? Please help.

Understanding the Payment of Bonus Act

As an HR executive, you must be familiar with the provisions of the Payment of Bonus Act and its applicability. Please read through the Act, study it, and gain the necessary knowledge before seeking clarification. Do not expect ready-made answers for your queries. It is your responsibility to explain the applicability of the Payment of Bonus Act to your establishment and ensure compliance with the law.

Identify the reasons for the refusal of bonus payment. Regardless of the reasons, your company is obligated to provide bonuses to all employees who have worked a minimum of 30 days in the financial year. Your company should account for the provisions of bonus payments in the company's balance sheet when filing income tax returns. Consequently, your company must maintain Form A and Form B for set-on and set-off purposes, as well as any surplus amount. Bonus payments should be made using Form C, and details of such payments must be submitted using Form D to the Labor Department.

If your company denies bonus payments, the matter should be escalated to the Labor Department. Having a registered trade union can lend weight to your case. Engaging with individual workers directly may lead to complications.

Regards,
Adoni Suguresh
Sr. Executive (Personnel, Administration, and Industrial Relations) (Retired)
Labor Laws Consultant

Below is a link that may help you understand the POB Act: https://www.google.com/url?q=https:/...rJ2gkB9c_wBPPg

Understanding Your Role as an HR Assistant

As an HR Assistant, you are duty-bound to advise your employer on prevailing labor laws, their implementations, and implications if not implemented. However, you should have some knowledge of prevailing labor laws applicable to you.

Regards