Payment of bonus to resigned or left employees

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2011 I had joined in one of the Pvt. Ltd., company in the month of Mar' 2010. The company has not given me any appointment letter or joining report. I have left the organization in the month of Aug' 2011 with a one month prior notice, at the time of leaving the organization also company has not provided me Relieving Letter and Experience Letter, but my salary has been credited directly in the bank through ECS from the company.

Company has created the bonus provision as per Labour laws nad IT Act as on 31- mar-11 balance sheet. Company will announce the bonus to the employees only in the month of October (at the time of Dasara).

MY DOUBT IS WHETHER CAN I GET THE BONUS FOR FY 2010-11 AND FY 2011-12. IF YES, PLEASE PROVIDE ME THE SECTIONS AND PROCEDURE TO GET THE BONUS FROM COMPANY.

MOREOVER COMPANY HAS STOPPED MY FIVE DAYS SALARY, INCENTIVES AND LEAVE ENCASEMENT ALSO. PLEASE PROVIDE ME THE PROCEDURE TO GET THE ABOVE ARREARS ALSO.

REGARDS,

PRAVEEN

U S Sharma

U S Sharma (Expert)
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12 August 2011 its the mater between employer and employees, however the bonus rules does not makes any employee eligible unless he completes 1 completed year of service (to be precise 240 days physical attendence for Earned leave)

you can get in touch with your employer for your queries, if the same is payable as per company policy, surely you would get eligible at the time of annouoncement.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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13 August 2011 I agree with the expert

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Querist : Anonymous

Querist : Anonymous (Querist)

14 August 2011 Sir,

I have worked for and half year, I have worked for one full Financial year. But, MD is not accepting to pay the Bonus

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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09 August 2024 When it comes to payment of bonuses and other dues from a company, there are specific rules and procedures under Indian labor laws and practices. Here’s a detailed breakdown of how you can address the issues related to the bonus, salary arrears, and other dues:

### **1. Bonus Payment**

**Eligibility for Bonus:**
- **Financial Year 2010-11**: Since you worked for a part of this financial year (from March 2010 to August 2011), you are generally entitled to receive a pro-rata bonus for the period you worked.
- **Financial Year 2011-12**: For the period after you left the company (from September 2011 to March 2012), you are not eligible for the bonus as you were not employed during this period.

**Legal Provisions:**
- **Payment of Bonus Act, 1965**: The Act mandates the payment of a minimum bonus of 8.33% of salary or wages for the financial year, provided the establishment meets the criteria for applicability.
- **Calculation**: The bonus for the financial year 2010-11 should be calculated based on the number of months you worked and the applicable percentage as announced by the company.

**Procedure to Claim Bonus:**
1. **Written Request**: Submit a formal written request to the HR or payroll department of the company asking for your bonus for the period you worked.
2. **Documentation**: Keep records of your employment, such as bank statements showing salary credits, to support your claim.
3. **Follow-Up**: If the company does not respond or refuses to pay, escalate the issue to higher management or file a complaint with the labor commissioner or the relevant labor department.

### **2. Recovery of Salary Arrears, Incentives, and Leave Encashment**

**Legal Rights:**
- **Salary Arrears**: You are entitled to receive your salary for the period you worked, including any incentives and leave encashment as per company policy and employment agreement.
- **Leave Encashment**: If you have accrued leave days and the company has a policy for encashment, you should be compensated for those days.

**Procedure to Claim Dues:**
1. **Formal Demand**: Send a formal letter to the company demanding payment of the withheld salary, incentives, and leave encashment. Include details such as your employment period and the amount due.
2. **Documentation**: Provide any evidence of your employment, including bank statements, pay slips, and correspondence with the company.
3. **Legal Action**: If the company does not comply with your request, you can file a complaint with the labor commissioner or take legal action through a labor tribunal or civil court.

**Legal Provisions:**
- **Payment of Wages Act, 1936**: This Act mandates timely payment of wages and addresses issues related to delayed or unpaid wages.
- **Industrial Disputes Act, 1947**: This Act can be used to address disputes related to employment, including non-payment of dues.

### **3. Procedure for Legal Recourse**

1. **Documentation**: Gather all necessary documentation, including employment records, pay slips, and correspondence with the company.
2. **Labor Commissioner**: File a complaint with the labor commissioner if the company does not settle the dues amicably.
3. **Legal Advice**: Consult with a labor lawyer or legal advisor to understand your rights and to guide you through the process of filing a legal claim.

### **Summary:**

- **Bonus**: You are entitled to a pro-rata bonus for the financial year 2010-11 based on the period you worked. For FY 2011-12, you are not eligible since you were not employed during that period.
- **Arrears**: You are entitled to your salary, incentives, and leave encashment for the period you worked. File a formal complaint with the company and escalate to labor authorities if necessary.

By following these steps, you can address your claims for bonus and other dues effectively.