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I completed 1 year and resigned on the next day, but company is denying bonus.
1 week ago
I joined on 18th Apr and resigned on 20th April next year. But company is denying the bonus which was promised to be given post 1 year from DOJ by saying that I was on notice period when the payout was done i.e on 26th April.
Offer letter says:-
The payout will be done in the payroll cycle as per the defined timelines above, subject to you being on rolls of the company and not serving notice.
What should I do in this case ?
A.Dear Client,
According to the Payment of Bonus Act, 1965, employees earning up to Rs. 21,000 per month and working for at least 30 days in a year are eligible for a bonus. The minimum bonus is 8.33% of salary/wages, and the maximum is 20%. Bonuses must be paid within 8 months after the accounting year ends or within a month of the Act's enforcement. Any contract conflicting with this Act is invalid. Employees can file complaints with the Labor Commissioner for unfair labor practices and claim unpaid bonuses using the Industrial Dispute Act, while managers must file money suits in Civil Court for recovery.
According to the Payment of Bonus Act, 1965, employees earning up to Rs. 21,000 per month and working for at least 30 days in a year are eligible for a bonus. The minimum bonus is 8.33% of salary/wages, and the maximum is 20%. Bonuses must be paid within 8 months after the accounting year ends or within a month of the Act's enforcement. Any contract conflicting with this Act is invalid. Employees can file complaints with the Labor Commissioner for unfair labor practices and claim unpaid bonuses using the Industrial Dispute Act, while managers must file money suits in Civil Court for recovery.
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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 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 Administrative Officer 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 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 Administrative Officer 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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