1. Is notice pay calculated on basic salary or gross salary? This company is a manufacturer and supplier of ophthalmic instruments and devices based in Delhi. There is nothing mentioned in the letter of appointment about notice pay.
2. Is it mandatory to pay a bonus to an employee who has been terminated by the company on the grounds of misconduct for unacceptable quality of work performance in the past few months? Our company pays one month's gross salary as a bonus during Diwali time.
Urgent, please reply.
From India, Mumbai
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22. Is it mandatory to pay a bonus to an employee who has been terminated by the company on the grounds of misconduct for unacceptable quality of work performance in the past few months? Our company pays one month's gross salary as a bonus during Diwali time.
Urgent, please reply.
From India, Mumbai
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if he/she worked more than 30 days in any financial year company must pay bonus to him irrespective of seperation
From India, Hyderabad
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From India, Hyderabad
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Notice pay should be Gross Salary. This is for both the employer to terminate an employee and the employee to leave the employer. The former one is supported by the relevant provisions of the ID Act also.
Payment of statutory bonus cannot be forfeited for such kind of misconduct whereas it is justifiable in the case of dismissal for some quantifiable loss caused to the company and as part of compensating the loss to the extent of bonus payable to the employee.
Performance being something which is relative and relative to some targets set by you, it will always be influenced by some or other personal bias and judgments of the reporting officer. Therefore, in order to avoid complications, send him off by paying notice pay in gross and bonus at actual.
From India, Kannur
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Payment of statutory bonus cannot be forfeited for such kind of misconduct whereas it is justifiable in the case of dismissal for some quantifiable loss caused to the company and as part of compensating the loss to the extent of bonus payable to the employee.
Performance being something which is relative and relative to some targets set by you, it will always be influenced by some or other personal bias and judgments of the reporting officer. Therefore, in order to avoid complications, send him off by paying notice pay in gross and bonus at actual.
From India, Kannur
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It is mandatory to pay a bonus to an employee who has been terminated by the company on the grounds of misconduct for unacceptable quality of work performance in the past few months.
Poor quality of work may be due to professional incompetence but not misconduct. It can be caused by various reasons. Was his work good earlier? Why has the quality deteriorated only in the last few months?
However, in the bare facts given above, non-payment of bonus can raise avoidable issues.
Extract from Bare Act Section 9. Disqualification for bonus.- Notwithstanding anything contained in this Act, an employee shall be disqualified from receiving a bonus under this Act if he is dismissed from service for:
(a) fraud; or
(b) riotous or violent behavior while on the premises of the establishment; or
(c) theft, misappropriation, or sabotage of any property of the establishment.
The present case does not fall under these circumstances or clauses. It is better to pay the worker.
From India, Pune
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Poor quality of work may be due to professional incompetence but not misconduct. It can be caused by various reasons. Was his work good earlier? Why has the quality deteriorated only in the last few months?
However, in the bare facts given above, non-payment of bonus can raise avoidable issues.
Extract from Bare Act Section 9. Disqualification for bonus.- Notwithstanding anything contained in this Act, an employee shall be disqualified from receiving a bonus under this Act if he is dismissed from service for:
(a) fraud; or
(b) riotous or violent behavior while on the premises of the establishment; or
(c) theft, misappropriation, or sabotage of any property of the establishment.
The present case does not fall under these circumstances or clauses. It is better to pay the worker.
From India, Pune
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I agree to points renedered by Mr Nathrao and can be considerd for action.
From India, Mumbai
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From India, Mumbai
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