How Should We Handle Bonus Payments for Ex-Employees We Can't Contact?

I have a doubt regarding the statutory bonus to be released for the employees in a financial year. My company released a bonus in the last financial year, but a few employees left the organization at the time of the bonus release. According to government laws, the bonus should be given to ex-employees of that particular financial year as well. However, we are unable to get in touch with three of them due to changes in their address and mobile numbers. Please advise on what should be done in this case—should we cancel the bonus payment or proceed with it? Your guidance is appreciated.

One way out is to seek and secure help from the co-workers/colleagues of such ex-employees whose postal address has changed. Surely, information will be shared. Also, send an intimation letter by registered post to those 3-4 at their permanent home addresses recorded in your Esta records.

Kritarth Team,
3.4.19

Yes, the statutory bonus must be paid to employees who worked in the establishment during the concerned accounting year but left before its disbursement. I don't think the Payment of Bonus Act, 1965, has any specific provision for the disposal of the unpaid bonus due to the non-traceability of employees who left. Where Labor Welfare Boards exist under the State Labor Welfare Fund Act, there are provisions regarding the deposit of unpaid accumulations of amounts payable to workmen in industrial establishments under the Act. I believe that the State of Rajasthan does not have such a State Labor Welfare Board. Therefore, you may keep the amount in the unpaid account for some time. Alternatively, you may deposit it with the Authority under the Payment of Wages Act, 1936, as per Section 25-A of the Act.

Thank you.