Navigating Bonus Payments for Retired Employees: What Should HR Do After Recent Amendments?

Dear All,

I am an HR Officer in a reputed company located in Guwahati.

My query is regarding an employee who retired in March 2007. At that time, she was not covered under the Bonus Act, 1965. Due to recent amendments in the Bonus Act, she has now become eligible for the payment of bonus.

The issue at hand is that she has reached superannuation and is no longer employed with us. What should we do? Is her bonus payable or not?

If the answer is yes, then the number of such cases would be quite high, including resignations.

I hope that you all can assist me with this. Please provide your suggestions.

Thank you all in advance.

Susheel

Murugavelu

Dear Mr. Susheel,

The amendment under the Bonus Act came into effect from 01/04/2006, while your employee retired on 31/03/2007. Therefore, she is eligible for a bonus.

Regards,
Murugavel B.
Chennai

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