Hello,
Annual bonus is part of our CTC component and is usually paid in the next calendar year probably by April or May, but there is no fixed date when it will be paid.This year it has been delayed we haven't yet received our annual bonus of 2015. And now Management has introduced a new policy which requires an employee to be on active payroll (Means employees should not be on notice period or absconding or terminated) w.e.f from Aug 1st, 2016.So my question is it legally valid and applicable to the annual bonus of 2015? i.e If I resign now, will I not be entitle to the annual bonus of 2015.Please advise.
Note :Factors considered for paying the annual bonus are Individual performance, company performance, industry performance and managements decision and now active payroll is also added to it
Thank you for you Help.
From India, Pune
Annual bonus is part of our CTC component and is usually paid in the next calendar year probably by April or May, but there is no fixed date when it will be paid.This year it has been delayed we haven't yet received our annual bonus of 2015. And now Management has introduced a new policy which requires an employee to be on active payroll (Means employees should not be on notice period or absconding or terminated) w.e.f from Aug 1st, 2016.So my question is it legally valid and applicable to the annual bonus of 2015? i.e If I resign now, will I not be entitle to the annual bonus of 2015.Please advise.
Note :Factors considered for paying the annual bonus are Individual performance, company performance, industry performance and managements decision and now active payroll is also added to it
Thank you for you Help.
From India, Pune
477
Hello Mahesh,
Thank you for replying.I understand most companies has such kind of policy.However my question is can company introduce a policy for previous years bonus in the current year and can it stand legally valid?
Thank you.
From India, Pune
Thank you for replying.I understand most companies has such kind of policy.However my question is can company introduce a policy for previous years bonus in the current year and can it stand legally valid?
Thank you.
From India, Pune
Dear Latish,
irrespective of active or inactive employee if any employee has worked 30 days or more in any accounting year shall be entitled for bonus under section 8 however bonus should be paid within 8 month after completion of accounting year under section 20(b) therefore disbursement of previous year bonus in current year cannot be companies policy. if company has not disbursed the previous year bonus they need to release immediately to all eligible employee and record the same in register form C also it is subjected to punishment/ penalty as defined in section 28 of bonus act.
Thanks & Regard
Devesh Chauhan
Practicing in Accounts, Finance, Taxation, Labour Laws
From India, Basti
irrespective of active or inactive employee if any employee has worked 30 days or more in any accounting year shall be entitled for bonus under section 8 however bonus should be paid within 8 month after completion of accounting year under section 20(b) therefore disbursement of previous year bonus in current year cannot be companies policy. if company has not disbursed the previous year bonus they need to release immediately to all eligible employee and record the same in register form C also it is subjected to punishment/ penalty as defined in section 28 of bonus act.
Thanks & Regard
Devesh Chauhan
Practicing in Accounts, Finance, Taxation, Labour Laws
From India, Basti
Dear Latish
Let us get the basics clear.
If your are talking about Statutory Bonus, then statue overrides the companies policies.
For being eligible for the statutory Bonus
1. you should have worked for 30 days or more in the previous financial year
2. your Basic + DA should be equal to or less then 21000/- per month.
If you satisfy the above two conditions you will be entitled to statutory bonus irrespective of you being the service of the company on the date of disbursement of the Statutory Bonus.
However, if you are discussing about a Bonus Scheme of the company which is over and above the statutory requirements, the company reserves the right to amend, modify, suspend or withdraw any such scheme as it deems fit.
Hope this helps.
From India, Mumbai
Let us get the basics clear.
If your are talking about Statutory Bonus, then statue overrides the companies policies.
For being eligible for the statutory Bonus
1. you should have worked for 30 days or more in the previous financial year
2. your Basic + DA should be equal to or less then 21000/- per month.
If you satisfy the above two conditions you will be entitled to statutory bonus irrespective of you being the service of the company on the date of disbursement of the Statutory Bonus.
However, if you are discussing about a Bonus Scheme of the company which is over and above the statutory requirements, the company reserves the right to amend, modify, suspend or withdraw any such scheme as it deems fit.
Hope this helps.
From India, Mumbai
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Annual return Bonus Act.pdf