Leaving Before Bonus Payout: Do I Have a Right to My Annual Bonus?

Hi, I have a variable component of 10 percent mentioned in the CTC. In the employee agreement, it says "bonus will be paid annually." That's it; in the entire document, that's the only mention about the bonus. It doesn't say anything for resigned employees. Usually, the bonus is paid in the March payroll. My last day is on the 8th of March. When I asked about my variable compensation, they said I will not receive it as I'm not employed until the 31st of March. I argued where it is mentioned. They told me that "bonus will be paid annually" itself says everything. I further argued that since I am present for the March payroll, wouldn't that be enough? Is my argument valid? Can I do anything about this?

Statutory Bonus for Resigned Employees

A statutory bonus must be paid to an employee who has left the company, provided they have worked for at least 30 days in the financial year. Moreover, if a bonus amount is specified in the contract of service or appointment order, it is considered a condition of service and is payable to a resigned employee proportionate to the days worked in the year.

Legal Action on Bonus Payment

Can I proceed legally on this? Will lawsuits pertaining to these ever get concluded?

If you qualify for a bonus by working for a minimum of 30 days in the preceding financial year, you can claim it as a right. However, there are a few important points to note regarding statutory bonuses. Please note that in my previous reply, I also used the term "statutory bonus." A statutory bonus is the amount of bonus calculated as per statute. Simultaneously, an amount of bonus shown as a part of remuneration or as one of the conditions of service shall also be payable even if the employee has left the establishment. This is because a bonus is considered a deferred wage, i.e., a part of the wage that is held to be paid in a lump sum at a later date.

Labour Disputes

Labour disputes are typically resolved quickly when filed before the labor authorities and not before the Court.