Dear Experts,
Can anybody tell me if it is required to pay the bonus amount for resigned employees along with their full and final settlement, or can the factory pay the bonus to resigned employees on their regular bonus payment date by informing the employee of the bonus date?
Regards,
Yuva
From India, New Delhi
Acknowledge(0)
Amend(0)
1Can anybody tell me if it is required to pay the bonus amount for resigned employees along with their full and final settlement, or can the factory pay the bonus to resigned employees on their regular bonus payment date by informing the employee of the bonus date?
Regards,
Yuva
From India, New Delhi
Acknowledge(0)Amend(0)
Yes, an employee covered by the Payment of Bonus Act 1961 is entitled to be paid a bonus at the time of F&F settlement if they worked for more than 30 working days during the relevant accounting year for which the bonus has been declared. If the bonus, as mentioned by you, is other than the statutory bonus and payable under a contract or settlement, then the question of whether the bonus is payable or not depends upon the terms of the contract/settlement.
B. Saikumar
From India, Mumbai
Acknowledge(0)Amend(0)
B. Saikumar
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Mr. Sasi,
Thanks for your reply and if possible, kindly share with me the Law requirement Section which states that the statutory bonus has to be paid along with the F&F. This information would be helpful for me.
Regards, Yuva
From India, New Delhi
Acknowledge(0)Amend(0)
Thanks for your reply and if possible, kindly share with me the Law requirement Section which states that the statutory bonus has to be paid along with the F&F. This information would be helpful for me.
Regards, Yuva
From India, New Delhi
Acknowledge(0)Amend(0)
Sec. (8) of PBA states that every employee is entitled to be paid a bonus in an accounting year under the Act if they have worked in the establishment for not less than thirty working days in that year. Once you become entitled to a bonus under Sec. (8), the liability falls on the employer to pay it within 8 months from the close of the accounting year as per Sec. 19. The Act does not specifically mention that the bonus shall be paid at the time of the Full and Final (F&F) settlement. However, it is a prudent administrative practice to pay all moneys due to an employee at the time of the F&F settlement in line with the spirit of the term "Full and Final" settlement.
B. Saikumar
From India, Mumbai
Acknowledge(0)Amend(0)
B. Saikumar
From India, Mumbai
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Amendment to Payment of Bonus Act 2015.jpg
Bigger bonuses for more as Lok Sabha amends Payment of Bonus Act - The Economic Times.pdf
THE PAYMENT OF BONUS ACT.doc