Non Payment of bonus which show in CTC Break up
3 months ago
Sir I worked in finolex cables ltd i served my tenure 11 months 15 days in my appointment letter there were 18 points about employment in which no where they mentioned about bonus i resigned from employment 23 April 2023. They said it will come but in the of nov 2023 but they didn't pay still it pending i approached HR head he saying that he will not pay because of tenure less than year you will not eligible i asked a simple question if it so why you didn't communicate to me at that time of my tenure he replied this is cultural practice of organization. What should i do know sir that was my savings which is part of my CTC but now they are not replying to mail. Kindly guide me
A.Dear Client,
As per the Payment of Bonus Act, 1965, an employee is eligible to receive a bonus under the Act, on fulfillment of the following criteria: an employee who receives a salary/wage up to Rs. 21,000/- per month (As per Amendment of 2015) and the employee must have worked in the factory or establishment for not less than 30 days in a year(FY). Section 10 of the Act prescribes the minimum bonus(statutory bonus), that is 8.33% of the employee’s Salary/wages, which is the least percent mandatorily to be paid by every establishment or organization covered by the Act, and as per Section 11 of the Act, the maximum amount of bonus shall not exceed, 20% of the salary/wages of the employees. For bonus calculation, only the employee’s Salary/Wages and Dearness allowance are considered. The bonus shall be paid within 8 months from the end of the accounting year, or within a month from the date of enforcement of the Act. So, in view of the above provision of the relevant Act that has an overriding effect on any contract or agreement made in contrary to the provision of the Act shall be infructuous and unenforceable and the eligible employee can claim a statutory bonus once he fulfills the eligibility criteria regardless of their terms of employment. Apparently, the actions of the Company may be treated as unfair labour practice, and accordingly, if you are not holding a position of manager or supervisor in the Company, but a workman as defined under Sec.2(s) of the Industrial Dispute Act, 1947. serving a legal notice to the Company reach out to the office of the concerned Labour Commissioner to file a complaint against the company over alleged unfair labour practice for redressal of your grievance, and apart, you should file an application u/s.33C(2) of I D Act before the concerned Labour Court claiming your unpaid bonus and other dues receivable on your resignation from the Company. But, if you are holding the position of manager or supervisor in the Company, you have to file a money suit before the Civil Court for recovery of your dues from the company.
As per the Payment of Bonus Act, 1965, an employee is eligible to receive a bonus under the Act, on fulfillment of the following criteria: an employee who receives a salary/wage up to Rs. 21,000/- per month (As per Amendment of 2015) and the employee must have worked in the factory or establishment for not less than 30 days in a year(FY). Section 10 of the Act prescribes the minimum bonus(statutory bonus), that is 8.33% of the employee’s Salary/wages, which is the least percent mandatorily to be paid by every establishment or organization covered by the Act, and as per Section 11 of the Act, the maximum amount of bonus shall not exceed, 20% of the salary/wages of the employees. For bonus calculation, only the employee’s Salary/Wages and Dearness allowance are considered. The bonus shall be paid within 8 months from the end of the accounting year, or within a month from the date of enforcement of the Act. So, in view of the above provision of the relevant Act that has an overriding effect on any contract or agreement made in contrary to the provision of the Act shall be infructuous and unenforceable and the eligible employee can claim a statutory bonus once he fulfills the eligibility criteria regardless of their terms of employment. Apparently, the actions of the Company may be treated as unfair labour practice, and accordingly, if you are not holding a position of manager or supervisor in the Company, but a workman as defined under Sec.2(s) of the Industrial Dispute Act, 1947. serving a legal notice to the Company reach out to the office of the concerned Labour Commissioner to file a complaint against the company over alleged unfair labour practice for redressal of your grievance, and apart, you should file an application u/s.33C(2) of I D Act before the concerned Labour Court claiming your unpaid bonus and other dues receivable on your resignation from the Company. But, if you are holding the position of manager or supervisor in the Company, you have to file a money suit before the Civil Court for recovery of your dues from the company.
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