Hi,
I left my company last Dec 2012. At the time of leaving, I had bonus payment due with company, therefore despite receiving the severance check, I did not sign the release letter indicating I have received full and final settlement. My employment contract is with Indian jurisdiction but my special bonus contract has US jurisdiction. My company came back to me in Feb/March 2013 and said they will pay be 60% of bonus, if I sign the release letter. I refused it then because I believed, I deserve full 100% bonus as per the exception documentation, I filed with them. After the discussion in June/July 2013, I indicated I will accept the 60% bonus for sake of keeping good professional relations. However, I indicated to them that please consider the today's exchange rate and account in new financial year starting April 2013. Not accounting in the new tax year and at prevailing exchange rate, causes me almost 15% loss. To my surprise, when they sent me the my Form-16 calculations in May 2013, I found that 60% bonus is already accounted against my income of last Financial Year and taxes were paid to the government. Now, my company is neither paying me the post tax money nor correcting my Form-16. They said, they must deduct the TDS and deposit when the payment is accrued. But, they said we will pay you only if you sign the release letter. Following are the questions:
1.Can my company hold the payment of overdue Bonus (I fulfilled the requirements last year in June 2012 to earn the payment) to have the release letter signed-off ?
2. If releases letter is the condition to release the final payment, is their decision to consider the accrual in last financial year valid ?
3. I am held Sr. management position in the company but, I had no supervisory responsibility (no one reported to me from HR point of view). What laws in India will be applicable, if I were to pursue the legal action ?
4. Whom in government authority, I should approach first.
Thanks,
KP
From India, Bangalore
I left my company last Dec 2012. At the time of leaving, I had bonus payment due with company, therefore despite receiving the severance check, I did not sign the release letter indicating I have received full and final settlement. My employment contract is with Indian jurisdiction but my special bonus contract has US jurisdiction. My company came back to me in Feb/March 2013 and said they will pay be 60% of bonus, if I sign the release letter. I refused it then because I believed, I deserve full 100% bonus as per the exception documentation, I filed with them. After the discussion in June/July 2013, I indicated I will accept the 60% bonus for sake of keeping good professional relations. However, I indicated to them that please consider the today's exchange rate and account in new financial year starting April 2013. Not accounting in the new tax year and at prevailing exchange rate, causes me almost 15% loss. To my surprise, when they sent me the my Form-16 calculations in May 2013, I found that 60% bonus is already accounted against my income of last Financial Year and taxes were paid to the government. Now, my company is neither paying me the post tax money nor correcting my Form-16. They said, they must deduct the TDS and deposit when the payment is accrued. But, they said we will pay you only if you sign the release letter. Following are the questions:
1.Can my company hold the payment of overdue Bonus (I fulfilled the requirements last year in June 2012 to earn the payment) to have the release letter signed-off ?
2. If releases letter is the condition to release the final payment, is their decision to consider the accrual in last financial year valid ?
3. I am held Sr. management position in the company but, I had no supervisory responsibility (no one reported to me from HR point of view). What laws in India will be applicable, if I were to pursue the legal action ?
4. Whom in government authority, I should approach first.
Thanks,
KP
From India, Bangalore
Suggestion 1: Pls. settle the Issue amicably because it is the best way to save the image of an professional because organizations doesn't suffer due to litigations it is the employee who gets affected mentally and financially during the course of litigation.
Suggestion 2: As you are in the Senior Management cadre and you must be having some authorities in the organization it may be to take decision, signing cheques, entering into contract, hence you have only option to go to civil court for sorting out the matter.
I left my company last Dec 2012. At the time of leaving, I had bonus payment due with company, therefore despite receiving the severance check, I did not sign the release letter indicating I have received full and final settlement. My employment contract is with Indian jurisdiction but my special bonus contract has US jurisdiction. My company came back to me in Feb/March 2013 and said they will pay be 60% of bonus, if I sign the release letter. I refused it then because I believed, I deserve full 100% bonus as per the exception documentation, I filed with them. After the discussion in June/July 2013, I indicated I will accept the 60% bonus for sake of keeping good professional relations. However, I indicated to them that please consider the today's exchange rate and account in new financial year starting April 2013. Not accounting in the new tax year and at prevailing exchange rate, causes me almost 15% loss. To my surprise, when they sent me the my Form-16 calculations in May 2013, I found that 60% bonus is already accounted against my income of last Financial Year and taxes were paid to the government. Now, my company is neither paying me the post tax money nor correcting my Form-16. They said, they must deduct the TDS and deposit when the payment is accrued. But, they said we will pay you only if you sign the release letter. Following are the questions:
1.Can my company hold the payment of overdue Bonus (I fulfilled the requirements last year in June 2012 to earn the payment) to have the release letter signed-off ?
2. If releases letter is the condition to release the final payment, is their decision to consider the accrual in last financial year valid ?
3. I am held Sr. management position in the company but, I had no supervisory responsibility (no one reported to me from HR point of view). What laws in India will be applicable, if I were to pursue the legal action ?
4. Whom in government authority, I should approach first.
Thanks,
KP[/QUOTE]
From India, Delhi
1Suggestion 2: As you are in the Senior Management cadre and you must be having some authorities in the organization it may be to take decision, signing cheques, entering into contract, hence you have only option to go to civil court for sorting out the matter.
I left my company last Dec 2012. At the time of leaving, I had bonus payment due with company, therefore despite receiving the severance check, I did not sign the release letter indicating I have received full and final settlement. My employment contract is with Indian jurisdiction but my special bonus contract has US jurisdiction. My company came back to me in Feb/March 2013 and said they will pay be 60% of bonus, if I sign the release letter. I refused it then because I believed, I deserve full 100% bonus as per the exception documentation, I filed with them. After the discussion in June/July 2013, I indicated I will accept the 60% bonus for sake of keeping good professional relations. However, I indicated to them that please consider the today's exchange rate and account in new financial year starting April 2013. Not accounting in the new tax year and at prevailing exchange rate, causes me almost 15% loss. To my surprise, when they sent me the my Form-16 calculations in May 2013, I found that 60% bonus is already accounted against my income of last Financial Year and taxes were paid to the government. Now, my company is neither paying me the post tax money nor correcting my Form-16. They said, they must deduct the TDS and deposit when the payment is accrued. But, they said we will pay you only if you sign the release letter. Following are the questions:
1.Can my company hold the payment of overdue Bonus (I fulfilled the requirements last year in June 2012 to earn the payment) to have the release letter signed-off ?
2. If releases letter is the condition to release the final payment, is their decision to consider the accrual in last financial year valid ?
3. I am held Sr. management position in the company but, I had no supervisory responsibility (no one reported to me from HR point of view). What laws in India will be applicable, if I were to pursue the legal action ?
4. Whom in government authority, I should approach first.
Thanks,
KP[/QUOTE]
From India, Delhi
Hi:
Thanks for the reply. No, I do not have any of the authority you mentioned. I was responsible for a project which is run globally. Around 100+ people were assigned functionally to me. So, that way I am an individual contributor even through my title was Sr. Director.
Yes, I am trying to resolve it amicably. I tried to let go 40% of my bonus for that reason. But, I have to draw the line somewhere. So, I indicated I will accept at prevailing exchange rate and in current tax year (to save on tax slabs). I am hoping that they will step forward to close. But, in case they do not, I have question: What laws are applicable to me in India ? Why it is only Civil Court ? Given that the special contract has US jurisdiction, can I go for arbitration in India ? (They are paying me in India after the conversion to local currency).
Thanks again,
Ashok
From India, Bangalore
Thanks for the reply. No, I do not have any of the authority you mentioned. I was responsible for a project which is run globally. Around 100+ people were assigned functionally to me. So, that way I am an individual contributor even through my title was Sr. Director.
Yes, I am trying to resolve it amicably. I tried to let go 40% of my bonus for that reason. But, I have to draw the line somewhere. So, I indicated I will accept at prevailing exchange rate and in current tax year (to save on tax slabs). I am hoping that they will step forward to close. But, in case they do not, I have question: What laws are applicable to me in India ? Why it is only Civil Court ? Given that the special contract has US jurisdiction, can I go for arbitration in India ? (They are paying me in India after the conversion to local currency).
Thanks again,
Ashok
From India, Bangalore
Mr. KP,
After having tried all means of getting the matter resolved if you have not been able to get a resolution, I suggest you file a complaint before the area ALC for unfair employee practices, irrespective of your valid jurisdictional legal remedy, I suggest you take assistance of a Lawyer in this regard. In your particular case I suggest you should not get a legal notice issued to the company, if they receive a legal notice from your lawyer they may be prepared with legal assistance before hand, but when they are asked to appear before the ALC directly they may not have enough time to consolidate their position and when they need to represent through their officers only will put more pressure on them, however, you can represent along with assistance of a lawyer before the ALC. This has worked most of the times that I have done for my clients. In case you need further assistance do communicate.
Regards,
From India, Chennai
After having tried all means of getting the matter resolved if you have not been able to get a resolution, I suggest you file a complaint before the area ALC for unfair employee practices, irrespective of your valid jurisdictional legal remedy, I suggest you take assistance of a Lawyer in this regard. In your particular case I suggest you should not get a legal notice issued to the company, if they receive a legal notice from your lawyer they may be prepared with legal assistance before hand, but when they are asked to appear before the ALC directly they may not have enough time to consolidate their position and when they need to represent through their officers only will put more pressure on them, however, you can represent along with assistance of a lawyer before the ALC. This has worked most of the times that I have done for my clients. In case you need further assistance do communicate.
Regards,
From India, Chennai
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