Dear Seniors
I work in MNC IT company . I have recently resigned from my company and currently on my notice period. I resigned in Nov 2013 and my last workin day is Feb 14 end. Now HR is informing me that I am not applicable to any bonus as I have resigned on Nov 13. Now this bonus is part of my ctc for the year 2013 ( Jan To Dec 13)
Now i dont know if HR is right or it just want to forego my bonus. There is no information given in my Offer letter regarding the Bonus in case one resgined.
Even though i want to sort out this issuse peacefully but want to know if i have any legal standing if HR doesnot listen.
Please advice.
I work in MNC IT company . I have recently resigned from my company and currently on my notice period. I resigned in Nov 2013 and my last workin day is Feb 14 end. Now HR is informing me that I am not applicable to any bonus as I have resigned on Nov 13. Now this bonus is part of my ctc for the year 2013 ( Jan To Dec 13)
Now i dont know if HR is right or it just want to forego my bonus. There is no information given in my Offer letter regarding the Bonus in case one resgined.
Even though i want to sort out this issuse peacefully but want to know if i have any legal standing if HR doesnot listen.
Please advice.
167
If it is a part of CTC, then the company is bound to pay you the bonus. Any component mentioned in CTC is a part of Salary and the employee is eligible for such component. Well in my opinion you can claim the Bonus (Part of CTC) till the last date of working i.e. till Feb 2014.
From India, Ahmadabad
From India, Ahmadabad
Greetings Friendz14,
In my opinion, if I am not wrong, you are referring to the incentive being paid to employees and is also indicated as part of CTC. Though there is no specific mention about this in your offer letter, there could be a clause in the offer letter that states that the incentive scheme will be as per policy guidelines laid down by the Management from time to time, then the company may take this as a reference point.
I am aware of MNC's following such policies wherein even if the employees quit on 30th December, the employee is ineligible for this incentive. But in your case you appear to have served the company for the whole of the calendar year. May be you can seek the guidelines/ policy of the company.
Regards
From India, Madras
In my opinion, if I am not wrong, you are referring to the incentive being paid to employees and is also indicated as part of CTC. Though there is no specific mention about this in your offer letter, there could be a clause in the offer letter that states that the incentive scheme will be as per policy guidelines laid down by the Management from time to time, then the company may take this as a reference point.
I am aware of MNC's following such policies wherein even if the employees quit on 30th December, the employee is ineligible for this incentive. But in your case you appear to have served the company for the whole of the calendar year. May be you can seek the guidelines/ policy of the company.
Regards
From India, Madras
Hello friendz,
When you raise a problem, you need to mentioned many more information in order to examine the same.However a gist of the Payment of Bonus Act,1965 is given below from where, I hope,you will be able to judge your eligibility for the payment of bonus.
1. Payment of Bonus Act,1965 is applicable to (a) every factory; and (b) every other establishment in which twenty or more persons are employed on any day during an accounting year:
2. All the employees employed on a salary or wage not exceeding Ten thousand per month in any industry to do any skilled or unskilled manual, supervisory, managerial, administrative, technical or clerical work for hire or reward are covered under the Act.
3."salary or wage" means all remuneration capable of being expressed in terms of money includes dearness allowance (that is to say, all cash payments, by whatever name called, paid to an employee on account of a rise in the cost of living).
4.Eligibility for bonus.- Every employee shall be entitled to be paid by his employer in an accounting year provided he has worked in the establishment for not less than thirty working days in that year.
5.Calculation of bonus with respect to certain employees.- Where the salary or wage of an employee exceeds 3500/- rupees per month, the bonus payable to such employee shall be calculated as if his salary or wage were 3500/- rupees per month.
6.Time-limit for payment of bonus.- All amounts payable to an employee by way of bonus shall be paid within a period of eight months from the close of the accounting year:
7. The minimum bonus under the Act is 8.33% of the salary or wage and the maximum is Twenty percent.
BS Kalsi
Member since Aug 2011
From India, Mumbai
When you raise a problem, you need to mentioned many more information in order to examine the same.However a gist of the Payment of Bonus Act,1965 is given below from where, I hope,you will be able to judge your eligibility for the payment of bonus.
1. Payment of Bonus Act,1965 is applicable to (a) every factory; and (b) every other establishment in which twenty or more persons are employed on any day during an accounting year:
2. All the employees employed on a salary or wage not exceeding Ten thousand per month in any industry to do any skilled or unskilled manual, supervisory, managerial, administrative, technical or clerical work for hire or reward are covered under the Act.
3."salary or wage" means all remuneration capable of being expressed in terms of money includes dearness allowance (that is to say, all cash payments, by whatever name called, paid to an employee on account of a rise in the cost of living).
4.Eligibility for bonus.- Every employee shall be entitled to be paid by his employer in an accounting year provided he has worked in the establishment for not less than thirty working days in that year.
5.Calculation of bonus with respect to certain employees.- Where the salary or wage of an employee exceeds 3500/- rupees per month, the bonus payable to such employee shall be calculated as if his salary or wage were 3500/- rupees per month.
6.Time-limit for payment of bonus.- All amounts payable to an employee by way of bonus shall be paid within a period of eight months from the close of the accounting year:
7. The minimum bonus under the Act is 8.33% of the salary or wage and the maximum is Twenty percent.
BS Kalsi
Member since Aug 2011
From India, Mumbai
i assume you are talking of bonus that is in the form of incentive not covered under payment of bonus act.
Just because an item is in your CTC does not mean you will get it.
you need to check your terms of employment (your appointment letter, HR Policy, Employee Handbook and Standing Orders - if any) to see if there is any clarity on the matter.
if there is nothing stated, then the company is free to take any justified stand. And this can be justified both ways.
You can approach the HR team again and explain that you should get bonus as you worked in that year, and that you have met your targets (I assume) and that you have worked sincerely. You can also speak to your Manager / HOD and ask them to interven so that you can leave with a good impression of the company and its fairness. If that does not work, I would suggest that you let it go as you need to leave in a good relationship so that you get a proper feedback during future background check.
From India, Mumbai
Just because an item is in your CTC does not mean you will get it.
you need to check your terms of employment (your appointment letter, HR Policy, Employee Handbook and Standing Orders - if any) to see if there is any clarity on the matter.
if there is nothing stated, then the company is free to take any justified stand. And this can be justified both ways.
You can approach the HR team again and explain that you should get bonus as you worked in that year, and that you have met your targets (I assume) and that you have worked sincerely. You can also speak to your Manager / HOD and ask them to interven so that you can leave with a good impression of the company and its fairness. If that does not work, I would suggest that you let it go as you need to leave in a good relationship so that you get a proper feedback during future background check.
From India, Mumbai
Greetings Friendz14,
You posted a query on 27th January 2014 and so many members have responded to your query based on their own assumptions and experience. However, you have not clarified the queries raised by the members. Kindly provide feedback to the responses given by members.
Regards
From India, Madras
You posted a query on 27th January 2014 and so many members have responded to your query based on their own assumptions and experience. However, you have not clarified the queries raised by the members. Kindly provide feedback to the responses given by members.
Regards
From India, Madras
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