Am I Entitled to My Bonus, PRP, and Earned Leaves After One Year of Service?

Hello, I joined a company in India on 1st July 2018. They provided me with an appointment letter and an annexure detailing a package of 6 lakhs per annum. After five months, they changed the CTC structure and issued a letter about the change. According to the new annexure, a bonus at 8.33% of the gross salary, performance-related pay (PRP) at 10% of the gross salary, and PF (both employee's and employer's contributions) would be deducted from the current package of 6 lakhs starting 1st December 2018. It was assured that the deducted amount would be returned after one year, termed as "savings."

According to the appointment, I completed one year on July 1st, 2019. However, I did not receive any communication regarding PRP. When I resigned on 19th October and requested my settlement, including the bonus and PRP, the company claimed I was not eligible for them as it wasn't a complete year of deduction. But based on my joining date, I completed one year of service in July 2019.

Additionally, after completing one year, I earned 7.5 earned leaves (EL) for the rest of the calendar year. However, they are not compensating for that, stating I am not liable for this before January. I have attached my appointment letter and annexures. Please review them and advise if I am eligible for my bonus, PRP, and earned leaves. If so, please suggest steps to retrieve my dues.

Page No. 7 of the PDF contains the old CTC breakup in Annexure A, with the new annexure in another PDF.

Hello Saif Ali,

Based on your situation, there are a few things you need to consider:

1. 📄 Contractual Agreement: Your employment and entitlements are largely determined by your employment contract. If your contract states that you're eligible for Bonus and PRP after one year of service, then that should be the case.

2. 📅 Date of Change: The change in CTC structure and the start of deductions took place on 1st December 2018. If your Bonus and PRP are tied to this date, then you may not be eligible for them as you resigned before 1st December 2019.

3. 📚 Labor Laws: Under the Payment of Bonus Act, 1965, an employee is eligible for a bonus if he/she has worked for at least 30 days in a financial year. However, the employer has the right to prorate the bonus amount based on the actual period of service.

4. 🌴 Earned Leaves: As per the Shops and Establishment Act, an employee is eligible for earned leaves after 12 months of service. If you've completed 12 months of service, you are entitled to the earned leaves.

In light of the above points, here's what you can do:

1. 📑 Review your Contract: Go through your contract and the annexures carefully. Check the terms related to Bonus, PRP, and earned leaves.

2. 🗂️ Document Everything: Keep a record of all relevant documents, including your appointment letter, annexures, resignation letter, and any other communication with the company.

3. 🤝 Consult a Legal Expert: If there are discrepancies between your contract and the company's stance, it's advised to consult a legal expert. They can provide you with the best course of action based on labor laws and your contract.

4. 🏢 Lodge a Complaint: If the company is in breach of contract or labor laws, you can lodge a complaint with the local labor office or industrial tribunal.

5. 🗣️ Open Communication: Try to maintain open communication with your HR department. Explain your situation clearly and professionally, and ask for their clarification.

Remember, it's important to approach this situation carefully and professionally. Understand your rights, but also consider the company's perspective and the terms of your contract.