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Bonus denied for resigning employees
24-Apr-2023 (In Civil Law)
i am an employee of a reputed construction company since last 4.5 yrs. I have given my resignation letter on 2nd March 2017 and will be on payroll upto 31 May 2017. I have submitted my appraisal paper also. Bonus is dependant on appraisal. Company is denying my bonus saying that company policy is to pay bonus to employees who are on payroll when bonus is credited. My basic salary=Rs 15625, flexi pay 2=16475, in a month after all tax deduction i get around 50k. Please tell me if i am eligible for bonus or not.
Eligibility: Every employee not drawing salary/wages beyond Rs. 10,000 per month who has worked for not less than 30 days in an accounting year, shall be eligible for bonus for minimum of 8.33% of the salary/wages even if there is loss in the establishment whereas a maximum of 20% of the employee’s salary/wages is payable as bonus in an accounting year. However, in case of the employees whose salary/wages range between Rs. 3500 to Rs. 10,000 per month for the purpose of payment of bonus, their salaries/wages would be deemed to be Rs. 3500.
There are provisions and benefits for newly formed establishments as well. As per these provisions/benefits, the first five accounting years following the accounting year in which the employer sells goods/renders services, bonus is payable only in respect of the accounting year, in which profits are made but the provisions of set on and set off would not apply.
Applicability: The Act is applicable in whole of India where 10 or more workers are working, or were working on any day of the preceding 12 months with the aid of power. Or whereon 20 or more workers are working or were working on any day of preceding 12 months without the aid of power.
There are provisions and benefits for newly formed establishments as well. As per these provisions/benefits, the first five accounting years following the accounting year in which the employer sells goods/renders services, bonus is payable only in respect of the accounting year, in which profits are made but the provisions of set on and set off would not apply.
Applicability: The Act is applicable in whole of India where 10 or more workers are working, or were working on any day of the preceding 12 months with the aid of power. Or whereon 20 or more workers are working or were working on any day of preceding 12 months without the aid of power.
Helpful?
21+
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Every employee is entitled to Bonus, For detail reply the offer letter and appointment letter has to be evaluvated. You can approach the District labour officer with your complaint keeping the company as opposiite party
Helpful?
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Adv. Kishore R
Kochi | 25+ Answers
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