Hi Sir,
Greetings! I have been working with an MNC company with the financial year starting from February to January. I have been with this company since 2005 and am planning to move on to another organization by mid-April 2011 as I have already submitted my resignation. I have received my full and final settlement statement, which does not include the bonus. When I raised a query, I was informed that since the company has not declared the bonus yet, typically our bonus is split into two parts - 25% at the time of Diwali and the remaining 75% by the end of April. I have received the 25% bonus during Diwali and have been told that I am not eligible to receive the remaining 75% as I have resigned and the company has not made any declaration.
My query here is, will I be eligible for the bonus when it is declared later even though I am no longer in service with the company? I believe the bonus should be for the completed period of service, and I have completed 12 full months since the previous bonus period. I would be grateful to receive some expert advice on this matter. Also, please let me know if my query is clear or if I need to provide more details.
From India, Coimbatore
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Greetings! I have been working with an MNC company with the financial year starting from February to January. I have been with this company since 2005 and am planning to move on to another organization by mid-April 2011 as I have already submitted my resignation. I have received my full and final settlement statement, which does not include the bonus. When I raised a query, I was informed that since the company has not declared the bonus yet, typically our bonus is split into two parts - 25% at the time of Diwali and the remaining 75% by the end of April. I have received the 25% bonus during Diwali and have been told that I am not eligible to receive the remaining 75% as I have resigned and the company has not made any declaration.
My query here is, will I be eligible for the bonus when it is declared later even though I am no longer in service with the company? I believe the bonus should be for the completed period of service, and I have completed 12 full months since the previous bonus period. I would be grateful to receive some expert advice on this matter. Also, please let me know if my query is clear or if I need to provide more details.
From India, Coimbatore
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Hi,
I am facing a similar issue, currently working in an IT company and serving the notice period. The variable pay/performance bonus for Jan - Dec 2010 is paid to all employees in March 2011 salary. However, all employees who have resigned and are serving their notice period have not been given their bonus. There is a clause in the FAQ document for performance bonus on the company's website, "The bonus may/may not be paid to the employees who have resigned/current on notice period as per the Organization's decision." Is it legal to not pay the bonus for Jan - Dec 2010 to employees just because they have resigned? Who should we approach in this case?
Almost all IT companies in India cheat employees by not paying their bonus which they have earned for the last FY just because they have resigned. This is no reason to hold back someone's earnings when they have duly earned it. What is the right approach to sort this matter?
Regards,
RK
From India
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I am facing a similar issue, currently working in an IT company and serving the notice period. The variable pay/performance bonus for Jan - Dec 2010 is paid to all employees in March 2011 salary. However, all employees who have resigned and are serving their notice period have not been given their bonus. There is a clause in the FAQ document for performance bonus on the company's website, "The bonus may/may not be paid to the employees who have resigned/current on notice period as per the Organization's decision." Is it legal to not pay the bonus for Jan - Dec 2010 to employees just because they have resigned? Who should we approach in this case?
Almost all IT companies in India cheat employees by not paying their bonus which they have earned for the last FY just because they have resigned. This is no reason to hold back someone's earnings when they have duly earned it. What is the right approach to sort this matter?
Regards,
RK
From India
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Dear All,
If your salary is Rs 10,000/-(basic + DA), then you are eligible to get the statutory bonus at the rate of 8.33%, if you have worked in an establishment for 30 days or more than 30 days. This statutory bonus, protected and secured by the Payment of Bonus Act, is mandatory and payable.
If you are not covered under the above-mentioned Act, then any bonus you receive, whether it is called an incentive bonus, production bonus, attendance bonus, etc., depends on your company's policy.
From India, Delhi
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93If your salary is Rs 10,000/-(basic + DA), then you are eligible to get the statutory bonus at the rate of 8.33%, if you have worked in an establishment for 30 days or more than 30 days. This statutory bonus, protected and secured by the Payment of Bonus Act, is mandatory and payable.
If you are not covered under the above-mentioned Act, then any bonus you receive, whether it is called an incentive bonus, production bonus, attendance bonus, etc., depends on your company's policy.
From India, Delhi
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Thank you for the prompt response. All IT companies are governed by the Shop & Establishment Act. Over time, the notice period has been extended from one month to three months for the benefit of businesses to safeguard them. Is there a way to request an amendment to the Act in order to protect the employees, ensuring they receive their bonuses?
Regards,
RK
From India
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Regards,
RK
From India
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Amendment to Payment of Bonus Act 2015.jpg
Bigger bonuses for more as Lok Sabha amends Payment of Bonus Act - The Economic Times.pdf
THE PAYMENT OF BONUS ACT.doc