This year we have distributed to Bonus to exiting employees 8.33% on GROSS sal.of last yr.(Apr.to March)
but we want to give 8.33% on BASIC sal.of last yr.Is it as per Law.can we do that legally.
I want legal dicision on this issue.I am working as a Corporate Manager-H.R./I.R.so have branchas of Thane and Goa.corporate office is at
Pune.We are the mail dealears of GRUNDFOS-manufacturing of International water pumps.
pl.give the reply,at the earliest
Jayant Nisal
Corporate Manager-H.R./I.R.
MULTITECH HYDROSYSTEMS.
From India, Pune
6but we want to give 8.33% on BASIC sal.of last yr.Is it as per Law.can we do that legally.
I want legal dicision on this issue.I am working as a Corporate Manager-H.R./I.R.so have branchas of Thane and Goa.corporate office is at
Pune.We are the mail dealears of GRUNDFOS-manufacturing of International water pumps.
pl.give the reply,at the earliest
Jayant Nisal
Corporate Manager-H.R./I.R.
MULTITECH HYDROSYSTEMS.
From India, Pune
Dear Jayant, Pl. make it clear first whether the bonus payable is to "existing employees" or "exiting employees".
From India, Salem
From India, Salem
Answer to UMAKANTHAN sir,
We have already distributed the bonus to the employees who are working with us.
Now we want to distribute the Bonus to the Resign employees.-can we diff. calculation to the resign emploees
we want to give Bonus to them 8.33% of BASIC.?but we have given the the Bonus to the emploees who are at present
working with us as 20 % of GROSS.As these emploees ahve left our comp.what interest they have?
We want the legal side.if EX-Employees goes to court what happened?where comp.has to pay the difference?or not.
Thanks
JAYANT NISAL
From India, Pune
We have already distributed the bonus to the employees who are working with us.
Now we want to distribute the Bonus to the Resign employees.-can we diff. calculation to the resign emploees
we want to give Bonus to them 8.33% of BASIC.?but we have given the the Bonus to the emploees who are at present
working with us as 20 % of GROSS.As these emploees ahve left our comp.what interest they have?
We want the legal side.if EX-Employees goes to court what happened?where comp.has to pay the difference?or not.
Thanks
JAYANT NISAL
From India, Pune
Dear Jayant,
As you are well aware bonus is a payment made in the current year to eligible employees on the basis of the performance of the establishment and the total earnings of the employees during the previous(accounting)year. What is important, therefore, is the employees' total earnings in the previous year and not the fact whether they are in the service of the establishment during the time bonus is declared and paid. It is payment made to all the employees matching their combined contribution to the revenues of the establishment in the relevant accounting year. Whether some employees are no more in the organization during the subsequent year due to normal termination of employment on account of reasons like resignation, retrenchment, retirement, death can not be a relevant factor for differentiation. So, you can not have two scales of bonus for the same class of workmen.
From India, Salem
As you are well aware bonus is a payment made in the current year to eligible employees on the basis of the performance of the establishment and the total earnings of the employees during the previous(accounting)year. What is important, therefore, is the employees' total earnings in the previous year and not the fact whether they are in the service of the establishment during the time bonus is declared and paid. It is payment made to all the employees matching their combined contribution to the revenues of the establishment in the relevant accounting year. Whether some employees are no more in the organization during the subsequent year due to normal termination of employment on account of reasons like resignation, retrenchment, retirement, death can not be a relevant factor for differentiation. So, you can not have two scales of bonus for the same class of workmen.
From India, Salem
Dear Mr. JAYANT,
In addition to highlights of hon'ble member Mr. Umakanthan, I wish to add two more points as below:
1) The payment of bonus amount , %age etc is arrived at as per provisions of BA. Please ensure that the calculation is in accordance with BA. but payment of bonus @20% to present employees is just creating discrimination between present employees and those who contributed together and equally but left the company during the year.The main objective of BA is to ensure that employees also get profits sharing.
2) Bonus to eligible employees is legally payable on earned Basic Salary and DA / VDA. also Just be sure, if that is not part of paid salary.
Regds,
RDS Yadav
Labour Law Adviser
From India, Delhi
In addition to highlights of hon'ble member Mr. Umakanthan, I wish to add two more points as below:
1) The payment of bonus amount , %age etc is arrived at as per provisions of BA. Please ensure that the calculation is in accordance with BA. but payment of bonus @20% to present employees is just creating discrimination between present employees and those who contributed together and equally but left the company during the year.The main objective of BA is to ensure that employees also get profits sharing.
2) Bonus to eligible employees is legally payable on earned Basic Salary and DA / VDA. also Just be sure, if that is not part of paid salary.
Regds,
RDS Yadav
Labour Law Adviser
From India, Delhi
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