One of our ex-employees has raised a dispute on non-payment of bonus for FY2015-16.
When the increments were announced in Aug.2015, we had raised his salary from Rs. 27,500/- to Rs. 30,000/-.
But the concerned employee requested for a higher salary Rs. 35,000/- exactly, since he wanted to apply for a housing loan & this salary would fetch him the quantum of loan that he desired. But he wanted Rs. 35,000/-.
In larger company interest we raised the salary to Rs. 35,000/- but with a stipulation that no further payments will be demanded by him till he completes the job assigned to him.
Within a couple of months of getting the housing loan sanctioned, the employee expressed his desire to leave the job, however we reminded him of his obligations on the basis of which he was being paid much higher salary than he actually deserved. The quality of work was not satisfactory & in first week of May 2016, the employee produced a doctor's report that he suffered from work related stress & wanted to leave the job. We have relieved him & also cleared his salary for May 2016 & also facilitated settlement of PF dues.
In Oct. 2016, the employee demanded that he should be paid the bonus for FY2015-16. We pointed out to him, the condition laid down when he was given much higher salary & that the company has already paid him higher remuneration for 10 months from Aug.2015 to May 2016. However, the employee claims that there was no such understanding & he was given higher salary since he deserved it & was indispensable to the company.
However the employee, instead of raising a formal dispute has now involved a local politician for settlement in his favour.
Except for this employee, all others were eligible under the payment of bonus act.
Are we correct in denying the additional payment demanded as bonus. If not, should the amount be at the same rate as paid to other employees.
When the increments were announced in Aug.2015, we had raised his salary from Rs. 27,500/- to Rs. 30,000/-.
But the concerned employee requested for a higher salary Rs. 35,000/- exactly, since he wanted to apply for a housing loan & this salary would fetch him the quantum of loan that he desired. But he wanted Rs. 35,000/-.
In larger company interest we raised the salary to Rs. 35,000/- but with a stipulation that no further payments will be demanded by him till he completes the job assigned to him.
Within a couple of months of getting the housing loan sanctioned, the employee expressed his desire to leave the job, however we reminded him of his obligations on the basis of which he was being paid much higher salary than he actually deserved. The quality of work was not satisfactory & in first week of May 2016, the employee produced a doctor's report that he suffered from work related stress & wanted to leave the job. We have relieved him & also cleared his salary for May 2016 & also facilitated settlement of PF dues.
In Oct. 2016, the employee demanded that he should be paid the bonus for FY2015-16. We pointed out to him, the condition laid down when he was given much higher salary & that the company has already paid him higher remuneration for 10 months from Aug.2015 to May 2016. However, the employee claims that there was no such understanding & he was given higher salary since he deserved it & was indispensable to the company.
However the employee, instead of raising a formal dispute has now involved a local politician for settlement in his favour.
Except for this employee, all others were eligible under the payment of bonus act.
Are we correct in denying the additional payment demanded as bonus. If not, should the amount be at the same rate as paid to other employees.