Exited employee has filed a complaint that he was not paid for two financial years under the "Payment of Bonus Act" Section 10(H). His gross payment is above ₹30,000/-.
Please advise on how to reply.
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4Please advise on how to reply.
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The reply has to be specific to the allegations in complaint / summon of Authority.
From India, Faridabad
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From India, Faridabad
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First question: Have you checked the entitlement of the bonus for the concerned ex-employee?
Second: Section 10H - could not locate it in the Payment of Bonus Act, as a learned member said. Please post the letter on the forum, duly masked to conceal identity.
From India, Pune
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Second: Section 10H - could not locate it in the Payment of Bonus Act, as a learned member said. Please post the letter on the forum, duly masked to conceal identity.
From India, Pune
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As per the Payment of Bonus Act 1965, eligible employees must be drawing ₹21000 per month or less (basic + DA, excluding other allowances). The employee in question exceeds the coverage limit by drawing more than ₹30,000 as per the Act and is therefore ineligible to invoke the jurisdiction of the authorities concerned.
From India, Mumbai
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From India, Mumbai
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Ya, it is true that there is a norm that employees with a salary below Rs 21,000 are eligible for a bonus in a private company. This eligibility is based on the basic pay plus Variable Dearness Allowance (V.D.A), totaling below Rs 21,000 only. This rule of law applies to bonus eligibility. Please check if the employee's salary falls below Rs 21,000 under these norms and pay the bonus promptly, without any controversy.
Moreover, I would like to clarify the current practice. In every factory, regardless of wage limits, all employees are being paid a bonus by the company's management. Therefore, I urge you to proceed, discuss this with your employee, and resolve the issue amicably. It's beneficial for both parties to reach a compromise rather than escalating the matter unnecessarily and causing headaches for the company due to receiving notices from the Labor Department for joint meetings.
From India, Nellore
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Moreover, I would like to clarify the current practice. In every factory, regardless of wage limits, all employees are being paid a bonus by the company's management. Therefore, I urge you to proceed, discuss this with your employee, and resolve the issue amicably. It's beneficial for both parties to reach a compromise rather than escalating the matter unnecessarily and causing headaches for the company due to receiving notices from the Labor Department for joint meetings.
From India, Nellore
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Please specify the left employee of basic & DA. If the basic & DA below 21000/- then he is eligible for bonus. If company has not paid during 2 financial year definitely he is eligible.
From India, Bangalore
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From India, Bangalore
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The component considered for bonus calculation is Basic + DA, and the ceiling is 21000/- and below. Whatever the gross amount may be, if the employee's Basic + DA is 21000/- per month or less, then they are considered for a bonus. Hence, in your case, check whether the concerned individuals have greater than or equal to 21000/- (Basic + DA); if so, they are eligible; otherwise, they are not.
From India , Gohana
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From India , Gohana
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