Respected Forum members and seniors,
I have an urgent query and request you to provide your legal expertise to help resolve the situation.
Our company not as a policy but to boost employees’ morale gives Diwali bonus of one month salary to staff who have completed more than 3 months with the organization on occasion of Diwali.
We have a case where one staff member was hired in Oct 2009 (After Diwali) in a managerial capacity. There had been ongoing issues with his performance and lately the person has proceeded on 3 months leave without pay for an elective medical procedure for which he was undergoing the treatment from last 2 years. The Management has suspicion that the staff has made a fool of us and the reason of elective surgery is not true. We are still waiting for his medical documents which he is yet to get from his doctors (as claimed by the staff).
The Decision Makers are feeling reluctant to give diwali bonus to this staff member. Should there be a reason that we should pay bonus to him also if we are paying it to others employees?
if tomorrow this issue becomes legal what can we do to justify our stand.
From India, Delhi
7I have an urgent query and request you to provide your legal expertise to help resolve the situation.
Our company not as a policy but to boost employees’ morale gives Diwali bonus of one month salary to staff who have completed more than 3 months with the organization on occasion of Diwali.
We have a case where one staff member was hired in Oct 2009 (After Diwali) in a managerial capacity. There had been ongoing issues with his performance and lately the person has proceeded on 3 months leave without pay for an elective medical procedure for which he was undergoing the treatment from last 2 years. The Management has suspicion that the staff has made a fool of us and the reason of elective surgery is not true. We are still waiting for his medical documents which he is yet to get from his doctors (as claimed by the staff).
The Decision Makers are feeling reluctant to give diwali bonus to this staff member. Should there be a reason that we should pay bonus to him also if we are paying it to others employees?
if tomorrow this issue becomes legal what can we do to justify our stand.
From India, Delhi
i think the way out is that u write a letter or mail to the concerned employee that HR is still waiting for medical certificates or proofs to be submitted and same has been pending since_ days... u r requested to submit them in a weeks time. if u get them then its fine. if not then u have good enuf reason...
From India, Chandigarh
From India, Chandigarh
I dont see any reason n giving him the bonus, clearly there should not be any payment for such cases.
From India, Delhi
From India, Delhi
Dear Manu,
My suggestion is you can ask him to submitt the documents and till then you can keep the Bonus on hold. even if submits the medical documents ( Fake Documents ) it will not be complete. You can ask the medical documents (prescription, test report, medical bills , etc) for the days he was in hospiat along with the discharge summary and mention him clearly that you cannot release the bonus till the documents are clear. One cannot produce all these as fake docs. You can verify the medical docs submitted by him through any third party mediclaim insurance company. ( They will verify and tell whether the traetment is true or not). If you find that it is a fake you will have a strong base to deny his bonus.
Regards
Shanky
From India, Madras
My suggestion is you can ask him to submitt the documents and till then you can keep the Bonus on hold. even if submits the medical documents ( Fake Documents ) it will not be complete. You can ask the medical documents (prescription, test report, medical bills , etc) for the days he was in hospiat along with the discharge summary and mention him clearly that you cannot release the bonus till the documents are clear. One cannot produce all these as fake docs. You can verify the medical docs submitted by him through any third party mediclaim insurance company. ( They will verify and tell whether the traetment is true or not). If you find that it is a fake you will have a strong base to deny his bonus.
Regards
Shanky
From India, Madras
Dear All,
Thanks for pouring in your suggestion.
Dear Neha: We have already send the staff a reminder letter for submitting the medical documents. The problem we see is that if the Management decides not to give the staff the bonus amount how can we justify our stand legal if the staff takes the matter for legal opinion as we know that staff has inclination of getting involved in all this.
I agree with Shanky's opinion that in case we are able to verify the medical docs and find out if they are fake then we would have all the means to justify our decision for not giving the staff the bonus. Is there any other suggestion you may think of where the employer can decline bonus to one staff while continue to give it to others. What caan be the other reasons where the bonus can be declined?
From India, Delhi
Thanks for pouring in your suggestion.
Dear Neha: We have already send the staff a reminder letter for submitting the medical documents. The problem we see is that if the Management decides not to give the staff the bonus amount how can we justify our stand legal if the staff takes the matter for legal opinion as we know that staff has inclination of getting involved in all this.
I agree with Shanky's opinion that in case we are able to verify the medical docs and find out if they are fake then we would have all the means to justify our decision for not giving the staff the bonus. Is there any other suggestion you may think of where the employer can decline bonus to one staff while continue to give it to others. What caan be the other reasons where the bonus can be declined?
From India, Delhi
Dear Manu,
I see that you are worried more from the legal perspective. To deal with this please answer the following queries that will lead you to the answer.
1. Has your Management given in writing in his offer of appointment to the employee that he will be paid Bonus (Customary) upon completing 3 months of service?
2. Has the Management referred that the policies of the company will govern the employee in the appointment letter?
3. Is there a written policy of the company that indicates that employees completing 3 months of service is eligible for Bonus (Customary)?
4. In the policy is there any mention about disqualification (if he is not performing satisfactorily he will not be eligible etc)
5. Is the employee covered under the payment of Bonus act (drawing more than Rs.1000/-)
If your Management has done what is mentioned in questions 1, 2 & 3 then you have to abide by it and pay him the Bonus.
If your Management has not made any mention as indicated in 4 then also the employee is entitled to Bonus.
If your Management has not committed anything 1, 2 & 3 and the employee is not eligible as per question 5 then the employee is not entitled for Bonus.
The most important fact is if the employee is entitled for Bonus as per Act then irrespective of any matter if he has completed the required service as per Bonus act then he is automatically eligible to receive bonus.
Trust the matter is clarified
M.V.KANNAN
From India, Madras
I see that you are worried more from the legal perspective. To deal with this please answer the following queries that will lead you to the answer.
1. Has your Management given in writing in his offer of appointment to the employee that he will be paid Bonus (Customary) upon completing 3 months of service?
2. Has the Management referred that the policies of the company will govern the employee in the appointment letter?
3. Is there a written policy of the company that indicates that employees completing 3 months of service is eligible for Bonus (Customary)?
4. In the policy is there any mention about disqualification (if he is not performing satisfactorily he will not be eligible etc)
5. Is the employee covered under the payment of Bonus act (drawing more than Rs.1000/-)
If your Management has done what is mentioned in questions 1, 2 & 3 then you have to abide by it and pay him the Bonus.
If your Management has not made any mention as indicated in 4 then also the employee is entitled to Bonus.
If your Management has not committed anything 1, 2 & 3 and the employee is not eligible as per question 5 then the employee is not entitled for Bonus.
The most important fact is if the employee is entitled for Bonus as per Act then irrespective of any matter if he has completed the required service as per Bonus act then he is automatically eligible to receive bonus.
Trust the matter is clarified
M.V.KANNAN
From India, Madras
Dear
If the F & F amount is more than the Bonus.Pay him the Bonus get his medical records ,check them and if they are fake recover the amount from his F &F. Discriminating a single person in an organization may not be humane.
. With Regards
Advocates & Notaries & Legal Consultants for Staffing & Recruiting Industry
E-mail : rajanassociates@eth,net,
-9025792684-9025792634
.
From India, Bangalore
If the F & F amount is more than the Bonus.Pay him the Bonus get his medical records ,check them and if they are fake recover the amount from his F &F. Discriminating a single person in an organization may not be humane.
. With Regards
Advocates & Notaries & Legal Consultants for Staffing & Recruiting Industry
E-mail : rajanassociates@eth,net,
-9025792684-9025792634
.
From India, Bangalore
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Diwali Bonus Survey.doc
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