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Legal action when resigned and company refuses to pay employee bonus
05-Jul-2023 (In Labour & Service Law)
I joined this company on June 1st and I signed a contract in which my pay is divided into different components. one such is continuation bonus. From the contract Continuation bonus of 1,00,000 INR would be paid to the employee after completion of every six months' service at the company, if the employee is still employed by the company. I quit the company recently on 31st may making it exactly 1 year. They refused to pay me the bonus stating i am not an employee on 1st june. Do I have any legal grounds to pursue?. If so how should i pursue?
You are entitled to the first 6 months' bonus since you continued as an employee. However, the second bonus for the 6 months may not be payable as you would be on your notice period during such time and the company is aware that you will not be continuing with it. You can sue for the 1 lakh payable after 6 months if that has not been paid.
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Adv. Harikrishna Pramod
Bangalore | 25+ Answers
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