Unpaid Bonus of Earlier Year

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CA-ASPIRANT (Querist)
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05 March 2011 Sir,

Pl let me know
Question: What is the treatement of Unpaid bonus continuing from earlier year.

Fact ; Employees have not claimed any bonus that is why bonus could not be paid.

Pl answer the question with reference to law mentioning section or rule as the case may be.

Thanks in Advance.

CS LLB Pulkit Gupta

CS LLB Pulkit Gupta (Expert)
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06 March 2011 Well you s'd have paid the bonus till 30th November 2010 for bonus relating to F.Y. 2009-10. But as there is no demand created by the employee you can still distribute the bonus.There is no maximum period prescribed in Law for unpaid bonus.
In one of the similiar cases letter alongwith the cheque of the unpaid amount was sent on the addresses of the staff in the company's record by registered post.Those which were returned as undelivered were written back but some of them were duly acknowledged.A decision to write back the amount was then taken accordingly.
No specific presentation is required unless the amount is too large. Generally the amount written back will go to P & L A/c and no specific note is required in this respect