I resigned from my previous company on 20/11/2012. Got relieved after serving notice period on 17/01/2013. So till what date I was on the rolls of the organization, the date I resigned or the date I got released?
I was supposed to get a bonus in the salary of December 2012 salary. But I didn't get. There were two conditions written in letter:
1. I should be on the rolls of the organization when payment is due(31/12/2013).
2. I should not decide to leave the organization on or before 31st Dec 2012.
My doubt is: Was I on rolls of the organization till payment date? And The word "decide to leave" is misleading. The date corresponds to date of resignation or date or release???
From India, Mumbai
I was supposed to get a bonus in the salary of December 2012 salary. But I didn't get. There were two conditions written in letter:
1. I should be on the rolls of the organization when payment is due(31/12/2013).
2. I should not decide to leave the organization on or before 31st Dec 2012.
My doubt is: Was I on rolls of the organization till payment date? And The word "decide to leave" is misleading. The date corresponds to date of resignation or date or release???
From India, Mumbai
Hi Nikhil,
Lets see your queries from both the parties of employment.
1. I should be on the rolls of the organization when payment is due(31/12/2013).: - Employer expected from you
Employer context: Should be on the rolls of organization refers , you are suppose to be active in the payroll of the organization and are not suppose to resign or get released on or before 31/12/2013.
2. I should not decide to leave the organization on or before 31st Dec 2012. - Employee has been expected for
This speaks about, You should not even think of separating from the organization, and of quite obvious, not supposed to put down your papers. You should be the on roll ( On role employee, is some one who has confirmed with the organization and has not resigned / serving notice period).
Here above is the explanation for your query and the below write up will add a little more clarity for your scenario.
1. Probation employee: Who is under probation period
2. Contract employee- Third party payroll
3. On role employee- Period between Employment confirmation on success full completion of probation till the date of your resignation with the hired employer/ Parent company.
4. off role: resigned or notice serving employee
So, As per my knowledge, The date of resignation is what the date to be concerned in your case, and it may sound sour but, you were not eligible for Bonus, As per the conditions your employer specified in offer terms.
From India, Bangalore
40Lets see your queries from both the parties of employment.
1. I should be on the rolls of the organization when payment is due(31/12/2013).: - Employer expected from you
Employer context: Should be on the rolls of organization refers , you are suppose to be active in the payroll of the organization and are not suppose to resign or get released on or before 31/12/2013.
2. I should not decide to leave the organization on or before 31st Dec 2012. - Employee has been expected for
This speaks about, You should not even think of separating from the organization, and of quite obvious, not supposed to put down your papers. You should be the on roll ( On role employee, is some one who has confirmed with the organization and has not resigned / serving notice period).
Here above is the explanation for your query and the below write up will add a little more clarity for your scenario.
1. Probation employee: Who is under probation period
2. Contract employee- Third party payroll
3. On role employee- Period between Employment confirmation on success full completion of probation till the date of your resignation with the hired employer/ Parent company.
4. off role: resigned or notice serving employee
So, As per my knowledge, The date of resignation is what the date to be concerned in your case, and it may sound sour but, you were not eligible for Bonus, As per the conditions your employer specified in offer terms.
From India, Bangalore
hi Nikhil, Bonus is financial year working add employee , but payment festival time for Diwali or left job payment to fulln final settlement due to bonus is financial year Regards Bhanu
From India, Indore
From India, Indore
Dear Nikhil ji,
As regards to your first question till what date you are on roll of the organization, date of resignation or date of relieving?
Answer is- date of relieving beyond any doubt.
As regards to your payment of Bonus, you need to let us know your basic / basic plus da if any, during the year 2012-13.
If your basic / basic plus da is less than Rs. 10000/- pm then only you are eligible to get bonus in accordance with the provisions under the Act. The bonus is payable by employer within 8 months from the close of its accounting year.
If you are not eligible to get bonus under the Act, your employer can pay you bonus in accordance with the terms of your employment / company policy. If your company policy says that you should be on roll of the company on the date of disbursement of bonus, you should get it. Your employer is not paying it, you need to raise a dispute in accordance with the law as applicable to your category.
From India, Mumbai
As regards to your first question till what date you are on roll of the organization, date of resignation or date of relieving?
Answer is- date of relieving beyond any doubt.
As regards to your payment of Bonus, you need to let us know your basic / basic plus da if any, during the year 2012-13.
If your basic / basic plus da is less than Rs. 10000/- pm then only you are eligible to get bonus in accordance with the provisions under the Act. The bonus is payable by employer within 8 months from the close of its accounting year.
If you are not eligible to get bonus under the Act, your employer can pay you bonus in accordance with the terms of your employment / company policy. If your company policy says that you should be on roll of the company on the date of disbursement of bonus, you should get it. Your employer is not paying it, you need to raise a dispute in accordance with the law as applicable to your category.
From India, Mumbai
Mr.Nikhil,
1) As rightly opined by Mr.Korgaonkar, if u escape the ambit of the definition u/s 2(13) in terms salary, u are not entitled to bonus under the Act.If not, u are entitled to statutory bonus as suggested by the other learned members since you've worked for more than 30 days in that accounting year.
2) Since you were on the rolls of the company till the expiry of the notice period, termination of ur services cannot have retrospective effect.As such you are entitled to claim the bonus guaranteed under the contract of employment.In case of refusal by ur ex-employer only civil remedy is available to u as indirectly suggested by Mr Korgaonkar.
From India, Salem
1) As rightly opined by Mr.Korgaonkar, if u escape the ambit of the definition u/s 2(13) in terms salary, u are not entitled to bonus under the Act.If not, u are entitled to statutory bonus as suggested by the other learned members since you've worked for more than 30 days in that accounting year.
2) Since you were on the rolls of the company till the expiry of the notice period, termination of ur services cannot have retrospective effect.As such you are entitled to claim the bonus guaranteed under the contract of employment.In case of refusal by ur ex-employer only civil remedy is available to u as indirectly suggested by Mr Korgaonkar.
From India, Salem
It does not appear to be a statutory bonus to me, having regerd to the conditions laid down by the employer. It must be some incentive bonus underthe contarct of service which is payable on two conditions namely 1) the employe must be on th rolls of the comapny as of 31st december 2012 and 2) he shoud have not decided to leave the comapny on or before 31st December 2012. In fact these two clauses cannot be read together. For eaxmple, he does not declare his intention to leave on or before 31st December 2012 but leaves on 31st December 2012, then also, he will not be eligible for bonus.Thus if an employee incurres debar clause under either of the two clauses, he will not be eligible for bonus.In the instant case the quieriest resinged from the service on 20-11-2012 but was relieved on 17-1-2013 after serving the notice period.The purpose of an incentive bonus as is this, is to induce an employee to continue his employment relationship till certain period so hat the employer is assured of service from such employee for such stipulated minimum period.
In respect of the clause which debars an employee from being eligible for bonus if he decides to leave the organisation on or before 31st December 2012, the date 31st Decmeber 2012 (having regard tothe intent and purposes of the bonus scheme) refers to the point of f time when he actually makes up his mind to leave the organisation.In the iinstant case the employee made up his mind to leave the organisation on 20-11-2012 ,well before 31st December 2012. Thus an employee who communicates his decison to leave the organisation before 31st December 2012, is deemed to have already incurred the debar which cannot be undid by his getting relieved after 31st december.He cannot declare before 31st December that he will leave the organisation and then also claim bonus by getting relived after 31st Decmebre..He cannot eat the cake and have it too. It is also not clear from the details, furnished by the quieriest whether he was in active servcie of the company till 17-1-13.Thus I endorse Aisha Sultana's view on this issue.
B.Saikumar
HR & Labour Law Advsior
Mumbai
09930532927
From India, Mumbai
In respect of the clause which debars an employee from being eligible for bonus if he decides to leave the organisation on or before 31st December 2012, the date 31st Decmeber 2012 (having regard tothe intent and purposes of the bonus scheme) refers to the point of f time when he actually makes up his mind to leave the organisation.In the iinstant case the employee made up his mind to leave the organisation on 20-11-2012 ,well before 31st December 2012. Thus an employee who communicates his decison to leave the organisation before 31st December 2012, is deemed to have already incurred the debar which cannot be undid by his getting relieved after 31st december.He cannot declare before 31st December that he will leave the organisation and then also claim bonus by getting relived after 31st Decmebre..He cannot eat the cake and have it too. It is also not clear from the details, furnished by the quieriest whether he was in active servcie of the company till 17-1-13.Thus I endorse Aisha Sultana's view on this issue.
B.Saikumar
HR & Labour Law Advsior
Mumbai
09930532927
From India, Mumbai
Mr Nikhil,
Your remaining on the rolls of the company will be treated till the date you got released and not the date of submission of the resignation letter.
Coming to the second issue ie, bonus/ex-gratia, if this was applicable as per the company norms, then you were supposed to be paid at the time of full and final settlement.
regards
bk mohanty
Director
Cypress Management Associates
9937822563
From India, Bhubaneswar
Your remaining on the rolls of the company will be treated till the date you got released and not the date of submission of the resignation letter.
Coming to the second issue ie, bonus/ex-gratia, if this was applicable as per the company norms, then you were supposed to be paid at the time of full and final settlement.
regards
bk mohanty
Director
Cypress Management Associates
9937822563
From India, Bhubaneswar
Since I have a similar issue, I wanted to use this thread to post my query. Hope that should be OK.
Here is the situation:
I was eligible for the variable pay (or bonus) for the period of July to December 2014
I put my paper (and communicated the notice period) on 16 January, 2015
My last working day was 13 February, 2015
When I received my final settlement, this variable component was not present.
Reason given: I need to be on roles at the time of payout. Apparently this was paid on February 28.
I don't think this aspect was mentioned in my offer letter.
Need view on this as I am going to challenge this (I am sure about the means)
From India, Bangalore
Here is the situation:
I was eligible for the variable pay (or bonus) for the period of July to December 2014
I put my paper (and communicated the notice period) on 16 January, 2015
My last working day was 13 February, 2015
When I received my final settlement, this variable component was not present.
Reason given: I need to be on roles at the time of payout. Apparently this was paid on February 28.
I don't think this aspect was mentioned in my offer letter.
Need view on this as I am going to challenge this (I am sure about the means)
From India, Bangalore
Sorry, in the above post, I meant to say 'I am not sure about the means to challenge this'
From India, Bangalore
From India, Bangalore
Bonus you talk about is exgratia. It is not covered by any law and therefore at the discretion of the company. It is generally paid to retain and incentivise the employee. You have resigned and leaving. Most companies will not give you the bonus. Even I'd you were there on 28th feb, I suspect you would still not get it.
There is no recourse to labour laws for you. The only recourse under law would be a civil suite claiming that your terms of contract were not fulfilled. It's a waste of time and money to pursue it. So effectively, you have no legal recourse. You therefore need to take up and discuss this matter with your HR team. If they are not willing to help or if we consider, you can take up the matter with the HR head. Depending on how your relationship was with your reporting manager, and is seniority in the company, you may also ask for is intervention on the ground that you have done go to work and morally, the company should give you that money.
From India, Mumbai
There is no recourse to labour laws for you. The only recourse under law would be a civil suite claiming that your terms of contract were not fulfilled. It's a waste of time and money to pursue it. So effectively, you have no legal recourse. You therefore need to take up and discuss this matter with your HR team. If they are not willing to help or if we consider, you can take up the matter with the HR head. Depending on how your relationship was with your reporting manager, and is seniority in the company, you may also ask for is intervention on the ground that you have done go to work and morally, the company should give you that money.
From India, Mumbai
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