Hi, I would like to know if we can pay an employee Diwali bonus for the month he has worked, but the company has deducted it as short of notice period? Would appreciate a quick response thanks daisy
From India, Ahmedabad
2From India, Ahmedabad
Dear Saswata,
We have an employee who has put his resignation in November. He has to serve two months notice period, as he has to join the other company in the next month, he is only serving one month notice period and the second month he has allowed to cut salary. Which means november month he will be without salary. As per Diwali bonus schedule of the company, we pay everyone from November to Oct Diwali Bonus. Hence this year too he has got his diwali bonus till October. Now, we are trying to find out if he is eligible for payment of Diwali bonus for the month of November wherein he does not get a salary due to Notice period short. Can you please help me.
thanks daisy
From India, Ahmedabad
We have an employee who has put his resignation in November. He has to serve two months notice period, as he has to join the other company in the next month, he is only serving one month notice period and the second month he has allowed to cut salary. Which means november month he will be without salary. As per Diwali bonus schedule of the company, we pay everyone from November to Oct Diwali Bonus. Hence this year too he has got his diwali bonus till October. Now, we are trying to find out if he is eligible for payment of Diwali bonus for the month of November wherein he does not get a salary due to Notice period short. Can you please help me.
thanks daisy
From India, Ahmedabad
Hi daisy
Are u trying to help him out or do u wish to stick to the requirement of the law ? The interpretation depends on that.
1. If notice period is of 2 months, then the employee has to work for the 2 months. If not, then he has to pay a notice salary for the period. In your case, he has worked 1 month and got salary for that 1 month. For the next month, if he is not working, he needs to pay 1 month salary to you. (it's not just that he is allowing you to not pay him - he has to pay you)
2. In recovering the amount due to him, you can adjust any other money due to him other than PF. Bonus, incentive, etc can be adjusted for this purpose.
3. The question is : is he eligible got bonus ? If his salary is above 10,000 per month, then he is not eligible for bonus. If it is below 10,000 then he is eligible for bonus for the previous year (if not already paid) and for the number of months he has worked in the current year. Ofcourse you can pay current year bonus next year when you pay for others. That is your choice.
Hope I cleared your doubt
Ofcourse, nothing prevents the company from giving bonus where it is not due (ex gratia) or to be lenient in settlement with an employee who they valued and want to keep a good relationship. So if your management wants to help him, they can always pay or accept in settlement more than what the law says
From India, Mumbai
Are u trying to help him out or do u wish to stick to the requirement of the law ? The interpretation depends on that.
1. If notice period is of 2 months, then the employee has to work for the 2 months. If not, then he has to pay a notice salary for the period. In your case, he has worked 1 month and got salary for that 1 month. For the next month, if he is not working, he needs to pay 1 month salary to you. (it's not just that he is allowing you to not pay him - he has to pay you)
2. In recovering the amount due to him, you can adjust any other money due to him other than PF. Bonus, incentive, etc can be adjusted for this purpose.
3. The question is : is he eligible got bonus ? If his salary is above 10,000 per month, then he is not eligible for bonus. If it is below 10,000 then he is eligible for bonus for the previous year (if not already paid) and for the number of months he has worked in the current year. Ofcourse you can pay current year bonus next year when you pay for others. That is your choice.
Hope I cleared your doubt
Ofcourse, nothing prevents the company from giving bonus where it is not due (ex gratia) or to be lenient in settlement with an employee who they valued and want to keep a good relationship. So if your management wants to help him, they can always pay or accept in settlement more than what the law says
From India, Mumbai
Dear Saraswath,
He has never been in the good books of Management, so wanted to know if as per law we have to pay Diwali bonus or not wherein we do not pay him salary for the month since he has short of notice period. He earns above 10k per month. His previous year bonuses are clear and paid. (November 2011 to October 2012).
regards
daisy
From India, Ahmedabad
He has never been in the good books of Management, so wanted to know if as per law we have to pay Diwali bonus or not wherein we do not pay him salary for the month since he has short of notice period. He earns above 10k per month. His previous year bonuses are clear and paid. (November 2011 to October 2012).
regards
daisy
From India, Ahmedabad
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