Employer denying to pay bonus what legal action can I take


employer not honouring his commitment as per contract. Not paying Performance bonus and linking it with parameters not defined in the contract. What is the legal remedy to ensure enforcement from his end ??

Answers (3)


312 votes

You can either approach a labour commissioner for default of contract and illegal practices or approach a civil court for enforcement of contract. The option to approach labour commissioner is more effective and cost efficient.


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174 votes

Your case falls under the category of the Industrial Dispute and is actionable under section 10 of the Industrial Dispute Act as well as well as under section 21 of the Payment of Bonus Act 1965, which reads as under:-
"21. Recovery of bonus due from an employer.- Where any money is due to an employee by way of bonus from his employer under a settlement or an award or agreement, the employee himself or any other person authorised by him in
writing in this behalf, or in the case of the death of the employee, his assignee or heirs may, without prejudice to any other mode of recovery, make an application to the appropriate Government or such authority as the appropriate Government
may specify in this behalf is satisfied that any money is so due, it shall issue a certificate for that amount to the Collector who shall proceed to recover the same in the same manner as an arrears of land revenue.
However, you may seek my assistance at a very reasonable cost.

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333 votes

You can send him a legal notice asking the concerned organization to honour the terms of the contract. If they fails to do so you can ask for the said dispute to resolved out as per the terms of the contract meaning thereby if there is a clause of arbitration then by arbitration or if not then as per the jurisdictional clause of the contract.

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