Hello Everyone, I'm working in an IT organization as a software engineer in India. I recently joined a new IT organization after spending 5 years in an old organization. In the old organization, my bonus and performance incentive amounts are stuck. I left the old organization on 12th August 2013, almost 3 and a half months ago. Below are the details of the amounts:
1. Bonus amount for the financial year Apr 2011 to Mar 2012 (B Part of CTC).
2. Bonus amount for the financial year Apr 2012 to Mar 2013 (B Part of CTC).
3. Performance Incentive for Jan 2012 to Mar 2012 and Apr 2012 to Jun 2012 on a quarterly basis. Received a mail from the Management person (B OR C Part of CTC).
4. Performance Incentive for July 2012 to July 2013 (Not received any mail) (B OR C Part of CTC).
5. Gratuity amount.
These are the details of my unpaid amounts.
I have written an email to the accounts department regarding my full and final settlement, mentioning the above details. Now, I have received the following reply:
"W.r.t bonus, We will definitely keep your point in mind w.r.t. bonus for 2011-12 and 2012-13."
"W.r.t. performance incentives, the organization has been following the policy of releasing only to staff who are present on the rolls at the time of disbursal. This means that even if you were on the rolls at the time of the announcement, you will not be eligible unless you are on the rolls when the amount is actually disbursed. Accordingly, you are no longer eligible for the incentives as and when disbursed."
As the old organization was going through some financial crisis, they did not pay the above-mentioned amounts in the respective year. Also, an important point to note is that they had never declared that the bonus or performance incentive amount is canceled. The above-mentioned amount has not yet been paid to any employee of the organization.
Is there anything I can do to get my unpaid amount? As I have to reply to the old organization's accounts department, what should my response be? I need your assistance.
What is the maximum time for full and final settlement, and does it include the bonus?
Can organizations have policies that make them not obligated to pay the bonus/performance incentive amount mentioned in the CTC to employees?
Is the Payment of Wages Act and statutory bonus Act applicable to the IT industry?
From India, Pune
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1. Bonus amount for the financial year Apr 2011 to Mar 2012 (B Part of CTC).
2. Bonus amount for the financial year Apr 2012 to Mar 2013 (B Part of CTC).
3. Performance Incentive for Jan 2012 to Mar 2012 and Apr 2012 to Jun 2012 on a quarterly basis. Received a mail from the Management person (B OR C Part of CTC).
4. Performance Incentive for July 2012 to July 2013 (Not received any mail) (B OR C Part of CTC).
5. Gratuity amount.
These are the details of my unpaid amounts.
I have written an email to the accounts department regarding my full and final settlement, mentioning the above details. Now, I have received the following reply:
"W.r.t bonus, We will definitely keep your point in mind w.r.t. bonus for 2011-12 and 2012-13."
"W.r.t. performance incentives, the organization has been following the policy of releasing only to staff who are present on the rolls at the time of disbursal. This means that even if you were on the rolls at the time of the announcement, you will not be eligible unless you are on the rolls when the amount is actually disbursed. Accordingly, you are no longer eligible for the incentives as and when disbursed."
As the old organization was going through some financial crisis, they did not pay the above-mentioned amounts in the respective year. Also, an important point to note is that they had never declared that the bonus or performance incentive amount is canceled. The above-mentioned amount has not yet been paid to any employee of the organization.
Is there anything I can do to get my unpaid amount? As I have to reply to the old organization's accounts department, what should my response be? I need your assistance.
What is the maximum time for full and final settlement, and does it include the bonus?
Can organizations have policies that make them not obligated to pay the bonus/performance incentive amount mentioned in the CTC to employees?
Is the Payment of Wages Act and statutory bonus Act applicable to the IT industry?
From India, Pune
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Your previous employer cannot hold any dues of an employee for more than 180 days. Addressing your queries:
1. They must pay you the gratuity without any exemptions.
2. If it is a bonus according to the Bonus Act, yes, you are entitled to receive it.
3. If it is a performance-based incentive/bonus, it is based on the company's policy and the discretion of the employer/management.
It is advisable to write a detailed letter (not an email) to your HR department and request a response. If they do not respond, send a reminder letter and a copy to the labor department. You should receive the due amount without any issues.
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1871. They must pay you the gratuity without any exemptions.
2. If it is a bonus according to the Bonus Act, yes, you are entitled to receive it.
3. If it is a performance-based incentive/bonus, it is based on the company's policy and the discretion of the employer/management.
It is advisable to write a detailed letter (not an email) to your HR department and request a response. If they do not respond, send a reminder letter and a copy to the labor department. You should receive the due amount without any issues.
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Full n final settlement.doc