Hi All,
Please help me in this regard.
My appointment letter shows a component of Annual Bonus which was to be paid to me on serving the company for a year. I am a confirmed employee with the company and need to give a two months notice or two monnths of basic salary on resigning.
Please help me to know, is company liable to pay that bonous amount in full or can make some deductions out of it.(Nothing is mentioned in this regard in my offer/appointment letter)
Also if I leave the company without proper notice can I claim my balance bonus amount after deducting two months of my basic salary from the bonus amount in my F&F.
Thanks
Anurag Gera
From India, New Delhi
1Please help me in this regard.
My appointment letter shows a component of Annual Bonus which was to be paid to me on serving the company for a year. I am a confirmed employee with the company and need to give a two months notice or two monnths of basic salary on resigning.
Please help me to know, is company liable to pay that bonous amount in full or can make some deductions out of it.(Nothing is mentioned in this regard in my offer/appointment letter)
Also if I leave the company without proper notice can I claim my balance bonus amount after deducting two months of my basic salary from the bonus amount in my F&F.
Thanks
Anurag Gera
From India, New Delhi
Dear pooja
As per company rules and regulations any employee before completing his probation period no one should not eligible
in cause as per your company registration you have any option means you provide the bonus ...
but as per company rules before completing his probationary period he/she not eligible ....
Regards
Shankar
From India, Bangalore
As per company rules and regulations any employee before completing his probation period no one should not eligible
in cause as per your company registration you have any option means you provide the bonus ...
but as per company rules before completing his probationary period he/she not eligible ....
Regards
Shankar
From India, Bangalore
1. Yes eligible ( you have to calculate till his last date of working)
2. If employee monthly basic is less than = 10000/- then he is eligible for statutory bonus, so as company you have to release the same as per bonus Act & that is compulsory.
If employee month basic is more than 10000 then you have to proceed as per your company rule book, whether to release or not.
From India, Mumbai
2. If employee monthly basic is less than = 10000/- then he is eligible for statutory bonus, so as company you have to release the same as per bonus Act & that is compulsory.
If employee month basic is more than 10000 then you have to proceed as per your company rule book, whether to release or not.
From India, Mumbai
Respected Seniors,
Most of the organizations do not pay bonus who has basic salary more than 10,000/-. If Bonus will be the part of salary / CTC then how can anyone pay bonus in the full & final settlement having 8.33% on basic salary.
Regards,
Rahul
From India, Pune
Most of the organizations do not pay bonus who has basic salary more than 10,000/-. If Bonus will be the part of salary / CTC then how can anyone pay bonus in the full & final settlement having 8.33% on basic salary.
Regards,
Rahul
From India, Pune
Hello Puja
it is still not clear whether the bonus you are referring to is statory bonus under the Bonus Act 1965 or is a bonus beyond the Act,If it is statutory bonus, what MR.Ramesh Bhardwaj and Bhargavi said is right.
If it is a bonus beyond teh Act,then your rights and liabilities with regard to the bonus will be subject to the terms of the contract.
B.Saikumar
HR & labour law advsior
Mumbai
From India, Mumbai
it is still not clear whether the bonus you are referring to is statory bonus under the Bonus Act 1965 or is a bonus beyond the Act,If it is statutory bonus, what MR.Ramesh Bhardwaj and Bhargavi said is right.
If it is a bonus beyond teh Act,then your rights and liabilities with regard to the bonus will be subject to the terms of the contract.
B.Saikumar
HR & labour law advsior
Mumbai
From India, Mumbai
Dear All
Good evening!!
I came through all the thread
First of all i would like to bring to your attention, we have check that particular employees is eligible for payment of bonus under the payment of bonus Act.
As per the ceiling whose basic and dearness allowance exceeds Rs. 10,000/- p.m will not cover under the payment of bonus act. And in that case they will get Ex-Gratia and not bonus. Also Managers and executives (Management cadre) will not come under the Bonus Act.
In that case you have to carefully go through offer/appointment letter they are eligible for Bonus or Ex-Ggratia.
If it is bonus you have to recover salary for unserved notice period and have to pay bonus. If it is Ex-Gratia you have to recover salary for unserved notice period and also no need to pay ex-gratia, since have not served notice period.
Regards
Murugan
HR Manager
Hospitality Industries.
From India, Madurai
Good evening!!
I came through all the thread
First of all i would like to bring to your attention, we have check that particular employees is eligible for payment of bonus under the payment of bonus Act.
As per the ceiling whose basic and dearness allowance exceeds Rs. 10,000/- p.m will not cover under the payment of bonus act. And in that case they will get Ex-Gratia and not bonus. Also Managers and executives (Management cadre) will not come under the Bonus Act.
In that case you have to carefully go through offer/appointment letter they are eligible for Bonus or Ex-Ggratia.
If it is bonus you have to recover salary for unserved notice period and have to pay bonus. If it is Ex-Gratia you have to recover salary for unserved notice period and also no need to pay ex-gratia, since have not served notice period.
Regards
Murugan
HR Manager
Hospitality Industries.
From India, Madurai
Bonus is given to an employee if the said employee get less than 10,000 as salary. IF he is earning more than 10,000 then he will not be eligible for bonus. If the employee does not comes in the definition of employee then the Payment of bonus act is not applicable to that employee. In that case he has to be paid as per the standing orders of the company or rules and regulation of the company. So you have to carefully refer the rules and regulation of the company.
From India, Kochi
From India, Kochi
As per the Act, minimum 30days of working makes employee eligible to claim the bonus.
Regarding your second query, since he would be getting his salary his bonus too will be included, but if the company personally do not wish to pay then only the Minimum Payable Bonus amount shall be paid to the employee, which is mandatory, and skip the additional Bonus amount for you satisfaction, here, neither there is infringement of any act nor employee can claim for the Extra Bonus legally!!
From India, Bangalore
Regarding your second query, since he would be getting his salary his bonus too will be included, but if the company personally do not wish to pay then only the Minimum Payable Bonus amount shall be paid to the employee, which is mandatory, and skip the additional Bonus amount for you satisfaction, here, neither there is infringement of any act nor employee can claim for the Extra Bonus legally!!
From India, Bangalore
Hi pooja there seems to be too much advise for you. I feel below is the answer
If its last years bonus kept on hold then please note that there are some time limits for declaration and payment of bonus. Even Bonus return also has to be filed giving details of bonus. Here please note if this Employee is covered under the Bonus Act then the Mgt. can in no way keep his bonus on hold after declaration. So please check whether he is a covered employee. if he is not then the terms of appointment letter become applciable w.r.t. bonus since then the bonus merely becomes a performance pay or part of ctc promised by employee in appt. letter.
Secondly - any which ways - whether covered or not - if you are doing a full & final settlement - then you calculate all dues payable to him (including bonus) and also all amount recoverable from him (including short notice) and then the balance is payable to him. So in your Bonus Register and calculation it will always how that you are paying the entire bonus but the same is getting setoff by the short notice recovery. This is purely accounting and mathematical calculations.
You can call for further details - 9820003978
prakash
From India, Mumbai
If its last years bonus kept on hold then please note that there are some time limits for declaration and payment of bonus. Even Bonus return also has to be filed giving details of bonus. Here please note if this Employee is covered under the Bonus Act then the Mgt. can in no way keep his bonus on hold after declaration. So please check whether he is a covered employee. if he is not then the terms of appointment letter become applciable w.r.t. bonus since then the bonus merely becomes a performance pay or part of ctc promised by employee in appt. letter.
Secondly - any which ways - whether covered or not - if you are doing a full & final settlement - then you calculate all dues payable to him (including bonus) and also all amount recoverable from him (including short notice) and then the balance is payable to him. So in your Bonus Register and calculation it will always how that you are paying the entire bonus but the same is getting setoff by the short notice recovery. This is purely accounting and mathematical calculations.
You can call for further details - 9820003978
prakash
From India, Mumbai
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Full n final settlement.doc