Hi,
I am working in a private company and was eligible for a performance bonus for the September 2016 to September 2017 cycle. I received a letter from the company stating that my bonus would be 100% of my monthly salary. However, I have now submitted my resignation in January 2018 and am serving my notice period.
The company is now stating that they will not provide the performance bonus because I have resigned. Yet, this bonus was intended for the period from September 2016 to September 2017.
Is it possible to file a case against the company for this issue? Is this a valid case to pursue, considering that private companies sometimes engage in such practices?
Please advise.
From India, Gurgaon
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I am working in a private company and was eligible for a performance bonus for the September 2016 to September 2017 cycle. I received a letter from the company stating that my bonus would be 100% of my monthly salary. However, I have now submitted my resignation in January 2018 and am serving my notice period.
The company is now stating that they will not provide the performance bonus because I have resigned. Yet, this bonus was intended for the period from September 2016 to September 2017.
Is it possible to file a case against the company for this issue? Is this a valid case to pursue, considering that private companies sometimes engage in such practices?
Please advise.
From India, Gurgaon
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Yes, you have a rightful claim under the Payment of Bonus Act 1965. You can lodge the claim before the local Labour Officer with full facts and supporting documents and seek his intervention. The Act does not authorize non-payment of bonus to employees who have resigned, as bonus is deferred wages.
From India, Mumbai
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1656From India, Mumbai
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I think that the issue is non-payment of performance bonus under the contract of employment, not the statutory bonus under the Payment of Bonus Act, 1965. Additionally, the user has not mentioned anything about his monthly gross salary as well as his employment capacity.
From India, Salem
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From India, Salem
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I am working as a senior software engineer in a private company, and my monthly salary is 60000. So, I was expecting a bonus of 60000. This company always delays its bonus. It is a performance bonus that is a part of the CTC and depends on the person's grade.
My grade was the highest. I was supposed to get this performance bonus in January 2018, but the performance was evaluated for the cycle from September 2016 to September 2017. Please let me know what information I missed here!
From India, Gurgaon
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My grade was the highest. I was supposed to get this performance bonus in January 2018, but the performance was evaluated for the cycle from September 2016 to September 2017. Please let me know what information I missed here!
From India, Gurgaon
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I presume a performance bonus was part of the benefits offered to you in your job offer letter.
You may have a legal case against him for failing to uphold his part of the contract, wherein the performance bonus was offered as part of your pay package. If all other attempts have failed, consider sending him a detailed legal notice.
From India, Pune
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You may have a legal case against him for failing to uphold his part of the contract, wherein the performance bonus was offered as part of your pay package. If all other attempts have failed, consider sending him a detailed legal notice.
From India, Pune
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Dear Friend,
What you have just provided is the relevant information to your queries. The quantum of your monthly salary disentitles you for a bonus under the PB Act, 1965 or from filing a claim under the Payment of Wages Act, 1936. Your salary also indicates positively that you must be a software engineer of senior cadre with supervisory responsibilities. If my presumption is fortunately wrong, you can file a claim u/s 33C(2) of the Industrial Disputes Act, 1947 before the Labor Court of the area. In such an otherwise situation, the only option before you is filing a suit for the breach of contract as well as recovery of the amount in a Civil Court. Better, seek the advice of a Civil Lawyer.
From India, Salem
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What you have just provided is the relevant information to your queries. The quantum of your monthly salary disentitles you for a bonus under the PB Act, 1965 or from filing a claim under the Payment of Wages Act, 1936. Your salary also indicates positively that you must be a software engineer of senior cadre with supervisory responsibilities. If my presumption is fortunately wrong, you can file a claim u/s 33C(2) of the Industrial Disputes Act, 1947 before the Labor Court of the area. In such an otherwise situation, the only option before you is filing a suit for the breach of contract as well as recovery of the amount in a Civil Court. Better, seek the advice of a Civil Lawyer.
From India, Salem
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Mr. Uma,
If the querist had indicated his designation and status in the company, the answer would have been easier. Many a querist fails to provide a correct and full description of their job, nature, position, etc., leaving posters guessing and answering. Some guidelines to this effect need to be made available whenever anyone chooses to post a query. The present case appears to be a breach of job contract terms, and a civil suit is the way out if not resolved earlier.
From India, Pune
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If the querist had indicated his designation and status in the company, the answer would have been easier. Many a querist fails to provide a correct and full description of their job, nature, position, etc., leaving posters guessing and answering. Some guidelines to this effect need to be made available whenever anyone chooses to post a query. The present case appears to be a breach of job contract terms, and a civil suit is the way out if not resolved earlier.
From India, Pune
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Yes, Mr. Rao, I do agree with you. Queries relating to individual statutory rights and contractual claims always lack such essential details. The anxiety for a quick solution and the overwhelming feelings of defeatism and agitation always mar such affected employees' equanimity while framing their questions. This is the reason for presumptive answers which go inappropriate at times and render a volley of follow-up queries from people like us.
Similarly, regarding common issues relating to statutory compliance, some posters simply forget to make a cross-reference of various related issues discussed earlier several times or fail to go through the concerned Acts and Rules but straight away raise rudimentary questions one after another. Occasionally, some people create threads for the purpose of getting approval of their own decisions which, in fact, run counter to the provisions of Laws as well as established conventions. Such an attempt results in lengthy and inconclusive discussions and baffles the readers.
One more important point is the poverty of language in framing the questions. Of course, we have to be very considerate in this aspect for the reason that all are not alike in language skills; but the point is that one needs to have patience in drafting the question in such a way that clarity is ensured. I think this particular point requires to be highlighted by the Admins in all the proposed meets suggested by Mr. Sid. Thank you for your open emphasis in this regard!
From India, Salem
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Similarly, regarding common issues relating to statutory compliance, some posters simply forget to make a cross-reference of various related issues discussed earlier several times or fail to go through the concerned Acts and Rules but straight away raise rudimentary questions one after another. Occasionally, some people create threads for the purpose of getting approval of their own decisions which, in fact, run counter to the provisions of Laws as well as established conventions. Such an attempt results in lengthy and inconclusive discussions and baffles the readers.
One more important point is the poverty of language in framing the questions. Of course, we have to be very considerate in this aspect for the reason that all are not alike in language skills; but the point is that one needs to have patience in drafting the question in such a way that clarity is ensured. I think this particular point requires to be highlighted by the Admins in all the proposed meets suggested by Mr. Sid. Thank you for your open emphasis in this regard!
From India, Salem
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Dear Friend,
The members of the forum have already replied to your query on the basis of your posting and reposting of some more facts. Your claim is for Performance Linked Bonus for the year 2016-17 not paid to you. You have already resigned and are now questioning something that, due to you, is not part of wages or bonus but rather some contractual consideration based on your performance during the year or cycle followed by your establishment.
To comment on or suggest any remedy, we need the complete text of your appointment letter/contracts. It is, therefore, advised that you seek the help of a law consultant who deals with labor-related issues for the next course of action.
Alternatively, you can request your employer in writing to adjust the balance of the "period of Notice" against the sum due for the Performance Bonus, and "x" date will be your last working date. By doing so, the outstanding amount shall be considered settled, and a reply from your employer would help in determining future courses of action.
Please let me know if you need further assistance or clarification.
From India, Mumbai
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The members of the forum have already replied to your query on the basis of your posting and reposting of some more facts. Your claim is for Performance Linked Bonus for the year 2016-17 not paid to you. You have already resigned and are now questioning something that, due to you, is not part of wages or bonus but rather some contractual consideration based on your performance during the year or cycle followed by your establishment.
To comment on or suggest any remedy, we need the complete text of your appointment letter/contracts. It is, therefore, advised that you seek the help of a law consultant who deals with labor-related issues for the next course of action.
Alternatively, you can request your employer in writing to adjust the balance of the "period of Notice" against the sum due for the Performance Bonus, and "x" date will be your last working date. By doing so, the outstanding amount shall be considered settled, and a reply from your employer would help in determining future courses of action.
Please let me know if you need further assistance or clarification.
From India, Mumbai
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