How Should I Handle a Bank Withholding My Bonus After Resignation? Seeking Advice!

Dear all,

I have worked in a bank (IDBI) for more than 3 years since July 2017 and recently resigned from service, getting relieved on 28 October. In August, the bank promised to pay a bonus for work during the Covid peak months from March to July. All details were entered into the system, and I was to receive 8 days' worth of salary as a bonus from IDBI. Despite filling out all details to receive the bonus, the bank delayed crediting the bonus for 3 months and only credited the sum to all receivers on November 7. However, I have not received any such bonus amount (as I had already been relieved on 28 October).

The circular for this bonus did not mention that resigning employees would not receive it. The bonus value was considered for the period while I was in service, and all approvals and attendance records were updated in the company software. Despite this, the company has failed to credit the bonus to my account.

The amount in question is Rs. 26,000, a substantial sum for a middle-class individual like myself. I cannot allow the bank to withhold it. I have emailed the HR department and received a reply stating that "all necessary steps for the bonus have been completed," effectively denying me my rightful dues. I also reached out to the HR head and the CEO via email but have received no response. This situation is concerning, as a bank should not withhold an employee's rightful payment.

I have:

1. Email conversations regarding this incentive/bonus payment.
2. My relieving letter.
3. My bank statement showing no credit on 7 November.

Thank you.

For the non-disbursal of the bonus payment, you have approached the HR Head as well as the CEO. From these functionaries, you have received a reply from the former but not the latter.

Against this backdrop, I recommend you write a detailed letter to the CEO stating why you are eligible to receive a bonus. Send the letter by Speed Post with CC to the HR Head. Let us wait for their reply. Depending on the type of reply, we will decide what to do further.

In the meanwhile, please confirm how many persons reported to you when you worked in the bank.

Thanks,

Dinesh Divekar

Special Incentive for COVID Work

It appears the reference is not for the statutory bonus but a special incentive given for work done during COVID times. Since the scheme did not have any exemption and you received assurance of its payment, my suggestion is that you write to them seeking immediate payment. Failing which, consider exposing them in the media. I wonder whether the Bank Ombudsman can help in the matter! What about the Unions, are they of any help?

Legal Action Against Bank for Withheld Bonus

Banking ombudsmen are of no use here. I am sending a letter by post demanding my money. If they fail to do so, I will send a legal notice and file a case in the labor court.

Incentive Payment Issue with Bank

If it is not about statutory payment, the labor court will not be able to help you. Since the payment in question is an incentive payment, only the bank management can assist you. You can meet with the chief controller of your bank and try to discuss the problem in person.

Request for Clarification on Bonus Payment Circular

Dear [HR Manager's Name],

I am writing to inquire if there has been any circular issued regarding the payment of bonuses or incentives for the period worked as circulated by the company. If such a circular exists, I kindly request a reference to it wherein the company has committed to compensating employees for their services during the specified period.

In the event that despite the existence of the circular, there is still a lack of agreement on the matter, I seek your guidance on the next steps. Should this be the case, I am prepared to escalate the issue directly to the labor office for the resolution of my concerns.

I would like to draw your attention to Section 33 c(2) of the Industrial Disputes Act, which allows individuals to appeal directly to the Labor Tribunal for the payment of outstanding bonus dues by presenting the circular issued by the company regarding incentives or bonuses for the relevant period of work.

Your prompt attention and clarification on this matter would be greatly appreciated. Thank you for your assistance in this regard.

Sincerely
[Employee ID]