Bonus Eligibility for Employees Leaving the Organization
Whether the employee is eligible for a bonus or not depends on what the term "bonus" refers to in your company. Is it the standard bonus as per the Payment of Bonus Act, or is it a performance-based incentive (referred to as a performance bonus/bonus by several companies)?
A mandatory bonus, if applicable, must be paid out regardless of when the employee leaves the organization, and this can be on a proportionate basis. However, a performance-based bonus (if mentioned in the salary structure/appointment contract-agreement) is applicable only after evaluating the performance, which is done during a specific period. If an employee is not present or employed during that evaluation period, then there is no evaluation and hence no performance bonus. Ideally, you should always include a note in your employment contract/remuneration structure document stating that the performance bonus is applicable only if the employee has neither resigned nor left the company before the declaration date.
Hope this clears up your confusion.
Regards,
A.B.