Bonus Dilemma in IT Consulting: Are We Obligated to Pay Without a Policy?

Hello,

We are a boutique Information Technology consulting company with a focus on core banking and treasury solutions.

As the bonus component is not mentioned in our offer letter or anywhere in the company policy, do we need to pay the bonus to our employees?

Please guide.

Regards, Vrushali

Dear Vrushali,

Whatever your "Company" may be, if the Payment of Bonus Act, 1965 is applicable to it as per Sec. 1(3) of the Act, you have to pay bonus to the employees notwithstanding your Company policy or your offer letter.