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Anurag Gera
1

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
saiconsult
1899

I think you must be referring to performance bonus but not statutory bonus. In my view, the company is entitled to deduct the notice pay in case of your default from the bonus in terms of employer's right of lien provided you become entitled to it as per your contract.
B.Saikumar
HR & Labour Law Advsior
Mumbai

From India, Mumbai
agbbrindha@gmail.com
10

Hi sasi,
but how it l possible for him to ask for bonus without giving proper notice period. what he did is not an acceptable one. so in this situation he doesnt ve any rights to claim his outstanding amount except his salary. i think i m rite. what do u say???

From India, Coimbatore
nandunegi@hotmail.com
3

hello, if it is statutory bonus, its compulsory otherwise depends on company,,,,,, they may or may not pay this amount,
From India, Delhi
Anurag Gera
1

The bonous amount is related to my retention time with the company i.e 1 year and not the PLI but it is mentioned as Annual Bonus. Please suggest what could be done if company tries to negotiate on this amount.
Thanks

From India, New Delhi
saiconsult
1899

Brindha

As per the terms of the contarct of employment as explained by Anurag, the bonus is linked to his retention in the servcie of the company for one year and thus he bcomes eligible for the annual bonus on completing one year in the company.The contract does not say that bonus stands forfeited on not giving two months notice.Therefore his right to annual bonus remains unaffected even by his default to give two months notice.However, Anurag has to give either two months notice or two months salary in lieu there of, in terms of the contract, if he wants to quit the service. Thus the optios open to both Mr.Anurag and the comapny in my view are as under :

For Anurag :

1) he can pay two months salary in lieu of notice; or

2) request the company to deduct notice pay from the bonus payable to him and pay him the balance.

For the company :

1) the company may insist on payment of two months notice pay and pay him the bonus fully or

2) can deduct two months notice pay from the bonus, irrespective of the request of Anurag in exercise of employer' s right of general lien.

B.Saikumar

HR & Labour Law Advsior

mumbai

2)

From India, Mumbai
agbbrindha@gmail.com
10

Thanks for your clearance sasi...
Eventhough paying bonus has no link with the contract, to my knowledge many private companies try to forfeit the bonus amount. this i came across in my experience sasi.

From India, Coimbatore
BSSV
201

Appreciating Mr. Saikumar's reply, i just would add that if you get your salary for the period what ever you mention, the salary includes what it has to be included with... if you get your full pay Bonus too will be included of that month... (not the performance bonus, only the legal one.....) how much ever you pay would be upon which the bonus will be included...
From India, Bangalore
babisolmanraju
25

Dear all,
If the company pays statutory bonus i.e. minimum 8.3% or maxium 20% is it pay additional productivity linked bonus or performance linked bonus for the employees? please advice in this regards.
Raju

From India, Secunderabad
saswatabanerjee
2392

I would disagree with the opinion stated by my fellow members.
The bonus stated would not be covered under payment of bonus act.
Its exgratia, which means at the option of the company.
They can very well refuse to pay it.
In case the offer letter or appointment letter specifically mentions bonus, probably you can consider that as a contract and therefore enforseable. However, by leaving without notice (which is also stated in the appointment letter), you have breached the contract and therefore the company is not bound to honour it either.
And if you are covered under statutory bonus, then its 8.33% or 20% of Rs. 6500 per month. I dont think your notice pay pending will exceed that.

From India, Mumbai
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