Company Refused To Give Diwali Bonus - Is This Correct?

Dear Seniors, I got a Appointment Letter from a healthcare Hospital One year Back (On 20.05.2015) containing Basic+ TA + Location Allowance + Bonus (2000) + Gratuity (Approx 2000) in My CTC.
AT the time of Diwali , Company Refused to Give Bonus to any body saying, It is not compulsory to Give Bonus to anyone. Its Companies Wish.
As per my Knowledge Rs 2000 X No.of Months i have served in Company should be given By company.
Can any one Guide me in this Case?
Thanks
Aanand Vegad

Dear Aanand,

I think the amounts within parenthesis are only provided by you for the purpose of illustration because CTC is generally projected by employers on annual basis only.Since CTC is a general estimate or projection of the annual total cost incurred per employee in respect of his/her employment, whatever mentioned in CTC can not be claimed unless and until the occasion for such a claim arises. Of course it is mentioned in Sec.32(v)(c) of the Payment of Bonus Act,1965 that the Act shall not apply to employees employed by institutions including hospitals established not for the purposes of profit. There is no mention in the post whether the said hospital is a charitable institution offering health care services on no profit basis or a regular Corporate Hospital. If it falls in the latter category, the management can not deny bonus to its eligible employees. Moreover, since eligibility for bonus is determined by the quantum of salary and bonus is linked to the performance of the establishment every year, you can not stake a straight claim based on the figure projected in the CTC.

Dear Mr.Aanand,
Thanks for the clarity by Mr.Umakanthan53.
Normally, Hospitals are considered and expected to be non-profit organisations, and as per bonus act referred above, employees of such hospitals are not eligible for bonus.
Kindly go through the said act.
best wishes

Mr Anand, there appears to be some confusion here. You have specifically referred to 'Diwali Bonus', which is distinct from industrial bonus. While the latter is a right of the workman, the former is merely a gift by the employer on the occasion of Diwali, totally dependent on his whims, fancies and beliefs!
You can request a Diwali bonus but cannot demand it!

There is a reason why HR professionals call CTC by a rude local slang, which means you have been screwed by your employer. CTC is unfortunately a tool to make your earnings look much more than it is. In this case too, bonus is a part of your CTC, not a part of your gross earnings. CTC is not actually enforceable and there is no reference to it under any law. The only action would be under contract act or its extension in labour laws, both of which are unsure grounds.
Whether you are eligible for annual bonus, or not, depends on facts of the case, and whether the institution and your personally are covered under payment of bonus act