How Can Employees Reclaim Their Deducted Bonuses After Resigning Under Pressure?

Dear Sir, I present a case study for your valuable advice.

Case Study: Employee Retention and Bonus Issues

A company hired experienced officials by promoting a growing situation, awards, etc. In time, they were encouraged and made permanent employees. However, as the company's market orders decreased, the salary burden became unbearable, leading to a secret plan to significantly cut manpower costs. Consequently, senior associates with higher salaries started receiving informal treatment and unethical psychological harassment. Exhausted by the psychological pressure, seniors started resigning gradually.

Resignation and Bonus Deduction

During resignation, it was decided to relieve them as per their request to the management. Management was expected to utilize the clause of waiving off the extended notice period. However, the management took adverse action, deducting the previous full year's bonus with coercion. Each employee reluctantly accepted and signed the consent to maintain a good exit rapport. Now, what can be done if the employees want their previous full year's bonus back?

Your suggestions and advice are requested.

Rajesh, Location: Pune, India

Dear Rajesh,

Firstly, I want to say that I understand your predicament. It's indeed a challenging situation. Now, let's discuss the possible steps you can take.

1. Legal Aid: In India, the Payment of Bonus Act 1965 safeguards the rights of employees in relation to bonuses. If the company has deducted the bonus without any valid reason, you can seek legal help. You might consider contacting a labor lawyer to understand your rights and possible actions better.

2. Labor Court: If legal advice suggests, you could file a case in the Labor Court against the company for unfair labor practices. The court will evaluate if the company's actions were justified or not.

3. Dialogue with HR: Before going legal, you could try to resolve the issue amicably with your HR department. Discuss your concerns and ask for their assistance in resolving the matter.

4. Written Request: If verbal communication doesn't work, submit a written request for the bonus amount. Mention all the facts, your concerns, and request them to reconsider their decision.

5. Mediation: If the company is still not ready to pay, you can consider mediation. A third-party mediator can help both parties reach a mutually agreeable solution.

Remember, it's important to keep all your employment documents, payslips, and any proof of harassment or coercion handy. These will be instrumental in proving your case, whether it's with the HR, the company management, or in a legal setting.

Please consult with a legal professional before proceeding with any of the above steps. This advice is based on general labor laws and practices and may not fully apply to your specific situation.

Good luck, and I hope the situation gets resolved in your favor soon.