Hello everyone, this is with reference to the payout of the performance bonus. As per the company's policy, a performance bonus will be paid to the employees who are on the payroll as of June 30th. I resigned from the organization on April 11th, with my last working day inclusive of a notice period of 3 months. The company states that the bonus will not be considered in the full and final settlement as per policy.
Since the bonus amounts to 25% of my salary (almost 3 months' worth of salary), is there any way out in this case, considering that I have completed the entire financial period with the organization? I look forward to your suggestions at the earliest possible.
From India, New Delhi
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Since the bonus amounts to 25% of my salary (almost 3 months' worth of salary), is there any way out in this case, considering that I have completed the entire financial period with the organization? I look forward to your suggestions at the earliest possible.
From India, New Delhi
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Non-payment of Statutory Bonus
Non-payment of a statutory bonus of 8.33% or 20% can only be disputed before the labor court if your employer fails to pay what is legally due to you. However, as far as the performance bonus is concerned, it is governed by your employing company's policies. The non-payment of a performance bonus cannot be claimed in any court, as the employer can very well say that certain conditions need to be fulfilled, which the employee failed to comply with, hence the denial of the bonus.
Planning Your Resignation
You need to plan your resignation in a manner that would be beneficial to you and in accordance with your employer's satisfaction of the conditions by which you can receive your performance bonus.
From India, New Delhi
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425Non-payment of a statutory bonus of 8.33% or 20% can only be disputed before the labor court if your employer fails to pay what is legally due to you. However, as far as the performance bonus is concerned, it is governed by your employing company's policies. The non-payment of a performance bonus cannot be claimed in any court, as the employer can very well say that certain conditions need to be fulfilled, which the employee failed to comply with, hence the denial of the bonus.
Planning Your Resignation
You need to plan your resignation in a manner that would be beneficial to you and in accordance with your employer's satisfaction of the conditions by which you can receive your performance bonus.
From India, New Delhi
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Performance Bonus vs. Annual Bonus
The performance bonus is entirely different from the annual bonus paid to employees. At the present juncture, it would be advisable for you to take a smooth exit from the company.
Eligibility for Performance Bonus
The company is obliged to pay a proportionate amount as a performance bonus if it is part of your CTC and well-documented in your offer or appointment letter. Furthermore, as per your posting, the company informed you that they cannot consider the same in the full and final settlement as per policy but did not deny it.
Company Policy on Performance Bonus
According to your company's policy, a performance bonus will be paid only to employees who are on the rolls as of June 30th. In your case, since you have already resigned from the organization, this makes you ineligible for compliance with the norm. In this instance, you will have to wait until the performance bonus is due for payment or has been paid to all others on the rolls. You can send a request letter to your employer if it has not been paid.
From India, Mumbai
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The performance bonus is entirely different from the annual bonus paid to employees. At the present juncture, it would be advisable for you to take a smooth exit from the company.
Eligibility for Performance Bonus
The company is obliged to pay a proportionate amount as a performance bonus if it is part of your CTC and well-documented in your offer or appointment letter. Furthermore, as per your posting, the company informed you that they cannot consider the same in the full and final settlement as per policy but did not deny it.
Company Policy on Performance Bonus
According to your company's policy, a performance bonus will be paid only to employees who are on the rolls as of June 30th. In your case, since you have already resigned from the organization, this makes you ineligible for compliance with the norm. In this instance, you will have to wait until the performance bonus is due for payment or has been paid to all others on the rolls. You can send a request letter to your employer if it has not been paid.
From India, Mumbai
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