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Revoking the bonus

Nitin Borana (3 Points)

06 February 2017

Can a private limited company in west bengal ask to its employee to give back the already paid bonus?

The employee has resigned immediately after getting the annual bonus and now we want to take it back.

Does company has any legal right to do so?

We haven't mentioned anything about the bonus in appointment letter.

Thanks in advance for your valuable feedback.

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4 Replies

Ravi Kiran Vustela (Knowledge Seeker) (1353 Points)
Replied 06 February 2017

no..... every employee is eligible to get bonus if he is worked for atleast 30 days in a AY...... and it's there wish to work or not..... after getting bonus.. there is no obligation to work after getting bonus... and bonus once paid cannot be asked back

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Nitin Borana (3 Points)
Replied 06 February 2017

Hello @ RaVi Kiran,

Thank you for your valuable reply. Could you please tell me, is there any law for such situation which prevents companies from asking the bonus back from the employee? If yes, then please send me the reference link.

Thanks & Regards

Ravi Kiran Vustela (Knowledge Seeker) (1353 Points)
Replied 06 February 2017

you paid bonus... so it will be governed by bonus act only and remember labour laws provisions are always favour towards employees not employer....... as per companies act section 63 bonus issue once made cannot be revoked subsequently... it's bonus on shares to share holders... here uh paid bonus to employees in cash...