Dear Seniors,
We are a manufacturing company with over 300 employees. I would like to inquire whether it is permissible to withhold the bonus amount of an employee who has left at the time of full and final settlement. Is it possible to include this payment along with the regular employees' salaries in the months of October and November?
Please provide guidance on this matter.
Thank you.
From India, Surat
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4We are a manufacturing company with over 300 employees. I would like to inquire whether it is permissible to withhold the bonus amount of an employee who has left at the time of full and final settlement. Is it possible to include this payment along with the regular employees' salaries in the months of October and November?
Please provide guidance on this matter.
Thank you.
From India, Surat
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It it is statutory bonus then you can not withhold the amount rather your should pay with full & final settlement only.
From India, Pune
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From India, Pune
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Bonus as per The Payment of Bonus Act, 1965 is not part of F & F. The company will declare the percentage of Bonus payable for the previous financial year after Generation A & B Register. Normally, Bonus is disbursed for employees who are in service during Dussehra/Diwali. However, Bonus has to be paid on or before 30th November.
Employees who are not in service at the time of disbursement of Bonus or ex-employees have to submit their claim for the releasing of Bonus after the declaration of Bonus by the employer. After the scrutiny of the claim, Bonus has to be paid to ex-employees not later than 30th November.
From India, New Delhi
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Employees who are not in service at the time of disbursement of Bonus or ex-employees have to submit their claim for the releasing of Bonus after the declaration of Bonus by the employer. After the scrutiny of the claim, Bonus has to be paid to ex-employees not later than 30th November.
From India, New Delhi
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I agree with mentioned comment by Mr Srinath. It is the correct procedure to be followed.
From India, New Delhi
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From India, New Delhi
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What happens if the employee goes to labour department and asks for the bonus to be paid with f&f. It has happened with our company.
From India, Kolkata
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From India, Kolkata
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Dear Mr. Sanjay,
In the Labour Department, you are required to submit your submissions in writing, quoting the information provided here. You must be assertive in your written communication, referencing the provisions of the Bonus law which state that the statutory due date for the disbursement of Bonus is on or before the 30th of November for the previous financial year.
Thank you.
From India, New Delhi
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In the Labour Department, you are required to submit your submissions in writing, quoting the information provided here. You must be assertive in your written communication, referencing the provisions of the Bonus law which state that the statutory due date for the disbursement of Bonus is on or before the 30th of November for the previous financial year.
Thank you.
From India, New Delhi
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Bonus is not a part of F & F Settlement. After complication of financial year company will declare the bonus and who have left the company we can pay him during Diwali or on before 30th November
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In addition to the above comments, if the bonus is part of the salary structure communicated to the employee at the time of appointment then it should be paid along with the F&F.
From India, Delhi
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From India, Delhi
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Dear Vikash, You can pay the employee, on declaration of bonus by the management not before that.
From India, Mumbai
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From India, Mumbai
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Dear Agarwal, all statutory benefits like PF, ESI, Gratuity, Bonus, etc., are all part of the salary structure/CTS. However, the payments will be as provided under the relevant Act & Rules. An employee who leaves service will get his salary dues, leave encashment, along with full and final settlement.
From India, New Delhi
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From India, New Delhi
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Dear Friend,
It is unnecessary that things are being stretched rather than wrapped within the dictates of law and rules. As per the Act, all amounts payable to an employee by way of bonus are to be paid within 8 months from the close of the accounting year. For example, in the year 2016-17, the bonus should be paid to the employees any day between 1.04.2017 to 30.11.2017. If an employee leaves the job by 31.03.2017, his/her bonus can be paid on 1.4.2017 with his Full and Final settlement at 8.33%. By doing this, one will invite another problem as the employee may not agree to 8.33%.
As a cultural practice, organizations declare bonuses during the major festival of the state (Durga Puja or Diwali) after consultation with the union. So, Full and Final settlement and Bonus are two different aspects that should not be combined in one payment. Bonus should only be paid when it is due and within the specified date.
Thank you.
From India, Mumbai
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It is unnecessary that things are being stretched rather than wrapped within the dictates of law and rules. As per the Act, all amounts payable to an employee by way of bonus are to be paid within 8 months from the close of the accounting year. For example, in the year 2016-17, the bonus should be paid to the employees any day between 1.04.2017 to 30.11.2017. If an employee leaves the job by 31.03.2017, his/her bonus can be paid on 1.4.2017 with his Full and Final settlement at 8.33%. By doing this, one will invite another problem as the employee may not agree to 8.33%.
As a cultural practice, organizations declare bonuses during the major festival of the state (Durga Puja or Diwali) after consultation with the union. So, Full and Final settlement and Bonus are two different aspects that should not be combined in one payment. Bonus should only be paid when it is due and within the specified date.
Thank you.
From India, Mumbai
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