Struggling with Unpaid Bonus: Can I Legally Claim My Full and Final Settlement?

Issue with Full and Final Settlement

I spent 3.5 years in my previous organization. It's been 10 months since they have not cleared my F&F. My F&F includes my 3 years of bonus. In the F&F email, HR mentioned that my organization gave a cheque to me today and has cut down my 2 years of bonus by stating that they sent me revised details, which were not mentioned in my offer letter. The offer letter states: Bonus: $30,000 per annum paid out annually upon successful completion of the year. However, in my latest appraisal letter, there is no mention of a bonus, making me ineligible for one.

Seeking Advice on Legal Action

I wanted to know, are they correct? Can I fight for my bonus money by filing a case or pursuing any other process?

Statutory Bonus and Employee Performance

Statutory bonus is based on the overall performance of the establishment. As far as employees under the PB Act, 1965 are concerned, they have to be paid a minimum bonus of 8.33%, even in the total non-availability of allocable surplus or profits.

Regarding other employees, in my opinion, individual performance as assessed in the appraisal would be a factor to determine the performance bonus. In the poster's case, the vaguely phrased condition "successful completion of the year" can be interpreted in any way. Of course, the poster can fight it out in a Civil Suit. However, he has to consider factors like the cost of litigation, the amount of time and energy consumed in the endeavor, etc. What is the use of making a mountain out of a molehill?