Are Employees Entitled to a Bonus if They Resign After Just 6 Months? Seeking Clarification

Hello Gentlemen,

Recently, two of our employees resigned. In their offer letter, we specified a bonus of Rs. 583 in their CTC. They worked for only 6 months. Now, they are claiming the bonus amount applicable for the full 6-month duration of their employment with the organization. We are seeking clarification on whether we are obligated to honor their claim. Our query pertains to the fact that they did not complete one year of service and resigned based on their personal interests. In this context, are they entitled to the bonus amount?

Your response would be greatly appreciated.

Regards

Bonus Eligibility and Calculation

For bonuses, the eligibility is just 30 days of working in a financial year. Moreover, the amount of the bonus is specified as part of their service conditions in the offer letter. Therefore, it shall be paid to them in proportion to the number of months they have worked.

Impact of Minimum Wages on Bonus Calculation

If your establishment falls under scheduled employment for which minimum wages have been notified by the government, then the bonus amount should increase. This is because the bonus calculation should be based on the minimum wages rather than just Rs 7000, especially for employees whose minimum wages are fixed by the government. Therefore, if they dispute non-payment of the bonus, they will receive more than what you have provided for them.

The claim of the employee is justified because they worked for six months, whereas 30 days of working in the fiscal year is the eligibility criterion. Therefore, you need to pay without delay.