Employee Left in 2015 Now Requests Revised Bonus: How Should We Handle This?

Dear All,

One employee joined our organization in 2012 and left in July 2015. We have already paid the bonus as per the old limit of 3500. Now, I received an email from the employee asking for the revised bonus as per the new limit. Please advise for which period we have to pay the difference amount and suggest the best way for payment. What checks do we need to perform before paying the revised bonus amount?

Thank you.

Retrospective Effect of the Payment of Bonus Act

Though the Payment of Bonus Act was amended with effect from 1st April 2014, the retrospective effect of the Act is still under trial. It was the Kerala High Court which stayed the retrospective effect for the first time, but later on, many other states followed suit. I believe the matter is pending before various High Courts. Therefore, you may also take a stand that you are unable to pay the revised bonus since the issue of payment of arrears is still to be decided by the court and the law enforcing authorities.

Regards, Madhu.T.K