Bonus And Gratuity [Thread 569655]

Dear Sir,
I am work with a private Ltd company from March 2010 to March 2016, They issued me appointment letter,conformation letter and relieving letter when I resigned. My last basic salary is Rs.20864/per month. In my service period two years company pay 8.33% bonus to me and third year company pay only Rs.3500/-.I have give one month notice period before resignation. After one month of my resignation from this month continuously mail to HR and all senior officials for final settlement, Company CEO replying that I am not eligible for bonus and gratuity is pending with LIC. I request your guidance for this subject for my next step, What are eligible and what to do ?.
Thanks & Regards
Sasankan Nair

Hi Sasankan,
It purely depends of the payment clause of Bonus mentioned in your appointment letter. However, Gratuity cannot be withheld or forfeited in any case. Gratuity can with withheld only when the employee is dismissed from service for wilful omission and riotous and disorderly behavior involving moral turpitude, damages or losses caused by the employee, etc.
The employer cannot state any reason, for not paying the gratuity amount, including LIC. Hope you have got all your employment documents. In that case speak to an advocate who deals with such cases and send in a legal notice to the CEO. No worries you will get your Gratuity.

Dear Mr. Sasankan Nair,
If gratuity is part of CTC then you can only eligible for, other wise after completion of 5 years of service your eligible for gratuity.

Mr Nair,

You worked for a period from March 2010 to March 2016 and if their is no break in service and worked minimum 240 days in each year you are eligible for Gratuity. The company might have taken a policy from LIC and your claim will be settled by LIC.

As far as payment of bonus is concerned, please note that your salary is within the eligibility limits of Bonus and as such you are entitled for bonus minimum at 8.33 % of your earned Basic + DA and payment of only Rs.3500/- on account of Bonus is not justifiable.

However, the payment of Bonus allow eight months time from the closing of financial year for disbursement, as such you have to wait till 30th November and thereafter you can approach the local Labour Officer with application in prescribed form.

I am having different opinion with other contributors to the thread where they are referring terms of appointment letter / CTC etc. for eligibility of Gratuity and Bonus. The appointment letters, terms and conditions, company norms can not supersedes the applicable laws of the land.



P K Sharma

Dear Mr. Nair,

You are eligible for both Bonus and Gratuity legally if you have worked for the period March,2010 to March,2016. So far as Gratuity is concerned, there are many Organizations who are opting for LIC Group Gratuity Scheme. But it is the responsibility of the organization to pay you gratuity on time i.e within one month of your leaving the organization after proper co-ordination with LIC. If it is abnormal delay, then take it up with the organization first and then with appropriate legal authority.

So far as Bonus is concerned as per latest amendment of payment of Bonus act, your last drawn bonus is within eligible limit. But it is not clear from your submission that why you have got bonus for 3 yrs only. Bonus is a deferred wages and your bonus for financial year 2015-16(April,2015 to March,2016) will be paid within 8 months of completion of financial year. If as per Bonus act your organization declares 8.33% bonus for the financial year 2015-16, then you will be entitled for Rs.7000/- or the minimum wages at your category whichever is higher.

Thanks & regards,

S K Bandyopadhyay

USD HR Solutions

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Hi,
I subscribe to the opinion expressed by Mr PK Sharma in the last para. A company policy or appointment letter cannot have an overriding effect on a legislation. This is only possible if the altered terms are the result of a bipartite or tripartite settlement arrived at during the course of negotiation or conciliation proceedings.

Dear Mr. Nair,
In my reply above there is one typographical mistake. Please correct. In para 2 instead of reading 'your last drawn bonus' it will be 'your last drawn salary'.
Thanks & regards,
S K Bandyopadhyay