Hello Everyone,
Till now whenever i had a doubt i have checked and i have got the answers here, but today i am not able to find out this so requesting you all to help me and clear my doubts as soon as possible.
1. If an employee resigns during his probation period whether he is eligible for bonus (bonus is part of the C.T.C) ?
2. If an employee resign with out serving notice period can we wave off there bonus amount as mentioned in appointment letter clause..will it be legal? n if they serve only 15 days then what will be the process?
Awaiting for your valuable feedback.
Thank you in anticipation.
From India, Bangalore
Till now whenever i had a doubt i have checked and i have got the answers here, but today i am not able to find out this so requesting you all to help me and clear my doubts as soon as possible.
1. If an employee resigns during his probation period whether he is eligible for bonus (bonus is part of the C.T.C) ?
2. If an employee resign with out serving notice period can we wave off there bonus amount as mentioned in appointment letter clause..will it be legal? n if they serve only 15 days then what will be the process?
Awaiting for your valuable feedback.
Thank you in anticipation.
From India, Bangalore
hi Pooja!
First case no he is not eligible for bonus if he resigns in probation period.
Second one if a person not serving notice,and if it is clearly mentioned in appointment letter then no second thoughts u can go ahead and waive off the bonus.
Only 15 days hmm any clause is there for that in your co.? if not deduct the remaining notice period amount and pay him bonus in his full and final settlement..
Hopefully im right i belive..
seniors if not correct me!!
Regards,
sai.
From India, Hyderabad
18First case no he is not eligible for bonus if he resigns in probation period.
Second one if a person not serving notice,and if it is clearly mentioned in appointment letter then no second thoughts u can go ahead and waive off the bonus.
Only 15 days hmm any clause is there for that in your co.? if not deduct the remaining notice period amount and pay him bonus in his full and final settlement..
Hopefully im right i belive..
seniors if not correct me!!
Regards,
sai.
From India, Hyderabad
Hi pooja
Under the provision of bonus act you need to pay bonus all the employee who worked with the organization during the prospective year as per the rule of bonus act & company polices. It is the legal requirement.
Thanks
Somvir Singh
From India, Panipat
Under the provision of bonus act you need to pay bonus all the employee who worked with the organization during the prospective year as per the rule of bonus act & company polices. It is the legal requirement.
Thanks
Somvir Singh
From India, Panipat
Dear Pooja/Sai,
Kindly refer Section 2(13) of Payment of bonus Act, 1965 : It says that Employee means any person other than an apprentice. It means a probationar is eligible for bonus if he works not less than thirty working days in an accounting year (Section 8).
Second bonus is statutory obligation on the part of employer.An employee is disqualified from bonus (Section 9) only if he is dismissed from services for-
a) fraud or
b) riotous or violent behaviour while on the premises of the establishment or
c) theft, misappropriation or sabotage of any property of the establishment.
Hence in the case bonus is eligible for the employee even if he don't serve the notice period.
Please refer the statutory provisions of the said Act.
Regards
Ramesh Bhardwaj
From India, New Delhi
Kindly refer Section 2(13) of Payment of bonus Act, 1965 : It says that Employee means any person other than an apprentice. It means a probationar is eligible for bonus if he works not less than thirty working days in an accounting year (Section 8).
Second bonus is statutory obligation on the part of employer.An employee is disqualified from bonus (Section 9) only if he is dismissed from services for-
a) fraud or
b) riotous or violent behaviour while on the premises of the establishment or
c) theft, misappropriation or sabotage of any property of the establishment.
Hence in the case bonus is eligible for the employee even if he don't serve the notice period.
Please refer the statutory provisions of the said Act.
Regards
Ramesh Bhardwaj
From India, New Delhi
(1)The payment of Bonus which you mentioned is part of the CTC; first read the clause for bonus. Is the bonus payable quarterly, half yearly or annual. Also check if there is any condition mentioned stating employee eligible for bonus only after probation.
If there is no clause related to bonus payment during the probation, then the employer needs to pay the bonus, but again there is another condition which you need to check. For example (A) The probation period in the company is 6 months and the employee has worked for 5 months and wants to leave the company the bonus condition for payment if it states payable quarterly and does not have any other conditions attached; then the company needs to pay bonus of the first three months and then for the next two months on the FFS(full and final settlement) similarly if the bonus is payable halfyearly or yearly it needs to be divided accordingly and should be paid to the employee..
(B) If the employer has mentioned this clause on the bonus - bonus payable quarterly on successful completion of each quarter. Then the employee is eligible for payment of bonus only for the first quarter and not for the second quarter. Similarly if its bonus payable half yearly/ annually then the company need not pay any bonus to the employee as he has moved out of the organization before his term of eligibility for bonus.
(2)If an employee fails to serve his notice period you can collect payment from the employee for the number of days he is short of notice period. Do check the appointment letter offered to the employee and the standing policy when it comes to notice period of you company and accordingly collect payment from the employee and release him.
If you have mentioned in the appointment letter that failure to serve notice period will lead to loss of bonus payment then its fine the company need not pay the bonus to the employee as he has failed to serve notice period.
From India, Madras
If there is no clause related to bonus payment during the probation, then the employer needs to pay the bonus, but again there is another condition which you need to check. For example (A) The probation period in the company is 6 months and the employee has worked for 5 months and wants to leave the company the bonus condition for payment if it states payable quarterly and does not have any other conditions attached; then the company needs to pay bonus of the first three months and then for the next two months on the FFS(full and final settlement) similarly if the bonus is payable halfyearly or yearly it needs to be divided accordingly and should be paid to the employee..
(B) If the employer has mentioned this clause on the bonus - bonus payable quarterly on successful completion of each quarter. Then the employee is eligible for payment of bonus only for the first quarter and not for the second quarter. Similarly if its bonus payable half yearly/ annually then the company need not pay any bonus to the employee as he has moved out of the organization before his term of eligibility for bonus.
(2)If an employee fails to serve his notice period you can collect payment from the employee for the number of days he is short of notice period. Do check the appointment letter offered to the employee and the standing policy when it comes to notice period of you company and accordingly collect payment from the employee and release him.
If you have mentioned in the appointment letter that failure to serve notice period will lead to loss of bonus payment then its fine the company need not pay the bonus to the employee as he has failed to serve notice period.
From India, Madras
Dear Sai
One must serve minimum 30 days to become eligible to get the bonus.
The Bonus is the statutory requirement and it cannot be waived off in any case, untill unless he is proved and dismissed due to any fraud, theft etc.
Notice period is separate clause and it is nowhere having any link with Bonus. The Notice period can be adjusted with the unavailed portion of PL/EL and not with Bonus payment.
Even if the company runs on loss the Bonus must be paid to the employees of the company.
From India, Kumbakonam
One must serve minimum 30 days to become eligible to get the bonus.
The Bonus is the statutory requirement and it cannot be waived off in any case, untill unless he is proved and dismissed due to any fraud, theft etc.
Notice period is separate clause and it is nowhere having any link with Bonus. The Notice period can be adjusted with the unavailed portion of PL/EL and not with Bonus payment.
Even if the company runs on loss the Bonus must be paid to the employees of the company.
From India, Kumbakonam
Dear All, Mr. Ramesh Bhardwaj is right, according to Bonus Act 1965, an employee is eligible for bonus if his working days is 30. thanks/regards Amit Kumar
From India, Chandigarh
From India, Chandigarh
Dear All Mr. Bhardwaj is right, as per the Bonus Act 1965, if any employee compleated 30 days (need 30 days working) he/she is eligible for Bonus as per the Act. Thanks Amit Yadav
From India, New Delhi
From India, New Delhi
Thanks all of you..
According to you all the company has to pay the bonus to the probationer that's clear..
The bonus is paid yearly. Here the case is one employee has worked for 2 years and failed to serve notice period and his bonus for the previous year i.e., 2011-2012 is pending so will it be right for not to release his bonus?
From India, Bangalore
According to you all the company has to pay the bonus to the probationer that's clear..
The bonus is paid yearly. Here the case is one employee has worked for 2 years and failed to serve notice period and his bonus for the previous year i.e., 2011-2012 is pending so will it be right for not to release his bonus?
From India, Bangalore
Dear Pooja,
As Mr. Bharadwaj has said any employee who has served minimum for 30 days in the last financial year is eligible for Bonus payment. According to the provisions of the Bonus Act, the employer has every right to recover any dues from the employee..It might be loan, any damages made to company, etc. The employer has the right to with hold the Bonus payment of any employee only if the employee has misbehaved & the company has suffered a loss due to this misbehaviour.
In the case mentioned by you, you can only recover the notice period due from him & pay the remaining amount. You cannot with hold his bonus payment. Hope this might have cleared your query.
Regards,
Bharghavi
From India, Bangalore
As Mr. Bharadwaj has said any employee who has served minimum for 30 days in the last financial year is eligible for Bonus payment. According to the provisions of the Bonus Act, the employer has every right to recover any dues from the employee..It might be loan, any damages made to company, etc. The employer has the right to with hold the Bonus payment of any employee only if the employee has misbehaved & the company has suffered a loss due to this misbehaviour.
In the case mentioned by you, you can only recover the notice period due from him & pay the remaining amount. You cannot with hold his bonus payment. Hope this might have cleared your query.
Regards,
Bharghavi
From India, Bangalore
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