Bonus after resignation not given by employer - full and final signed

nileshnilesh143
Dear Sir/Madam, I have not received the 2015-16 year bonus so i have mailed to the hr to release my bonus but they are saying that you are the left employee so you cant get the bonus there after i said that you have to give the bonus to left employees as per bonus act, then they are saying that you have signed on the receipt of full and final settlement which is stating that all dues are clear so please suggest.
umakanthan53
Bonus is a deferred statutory payment due to an employee based on his eligibility in terms of his salary and attendance during the Accounting Year for which bonus is to be declared and disbursed after the close of the year. Therefore, firstly, those employees leaving the organisation by normal termination of employment before the declaration and payment of bonus for the year during which they worked are also entitled to bonus on par with others remaining in service. It is immaterial whether they are in service or not when bonus is actually declared and paid. Secondly, the full-quit receipt tendered by the employee earlier at the time of full and final settlement can not include a statutory payment like bonus to be paid later subject to conditions laid down in a statute. Try to convince your HR and if it is futile make a complaint u/s 21 of the Payment of Bonus Act,1965 to the Appropriate Govt. for recovery of the amount of bonus due to you.
Srinath Sai Ram
Dear Nilesh, Please reply to your HR Stating that Your F&F does not include Bonus under The payment of Bonus Act.Mere signing of "No Dues Certificate" will not bar an Employee from receiving Bonus to which Employee is entitled. As suggested by Umakanthan Sir, please initiate action immediately by taking up the matter with Labour Officer concerned
nileshnilesh143
Thanks for suggestion, I have word with Hr but he is saying for some standing order and because of that bonus is payable as per company policy.
umakanthan53
I think that the HR you mentioned seems to be addicted to the Corporate Mantra " the boss is always right'. That's why he refuses to distinguish between " Company Policy " and the "statutory right of an employee of that Company" and a provision of the Standing Orders of the Company and a provision of a Statute applicable to the Company and the particular employee covered by it. Better, follow my suggestion.
Srinath Sai Ram
Dear Mr Nilesh, if your Basic+DA+VDA during FY 2015-16 was RS21,000/-PM & below you come under the purview of The Payment of Bonus Act, 1965.It has nothing to do with Standing Orders/Company Policy etc
I am not happy with the way you have communicated with your HR.You should have communicated in writing & shared the reply from your HR in this forum.If you are really interested in getting your Bonus firstly, you should submit your claim in writing to your Employer By Regd Post Ack Due.In case there is no reply from your Employer within reasonable time, submit your Application to The Labour Officer concerned under whose Jurisdiction your previous Company comes.Please initiate action & then revert.Actions speak louder than post
nileshnilesh143
Ok noted sir I will do the same thing and reply you.
korgaonkar k a
Dear Nilesh ji,
Umakanthan Sir has given right advise to you.
I also support the advise given by SRINATH SAI RAM. He has rightly said that mere signing of "No Dues Certificate" will not bar an Employee from receiving (I will say claiming) Bonus to which Employee is entitled.
I would like the quote / share a case law (W.A.No.1478 of 2006) for the benefit of you and the readers. In P. Selvaraj v. The Management of Shardlow India , the Madras High Court was of the opinion that where a full and final settlement was a predicament whereby it was mandatory for an employee to sign it to get any amount, even if it was less than the sum he was entitled to, in those cases the full and final settlement will not stand, and the employee can claim the sum he was entitled to. It also asserted that an employee cannot be estopped from claiming the gratuity amount by virtue of section 14 of Payment of Gratuity Act, 1972, since it has an overriding effect over any other enactment or any instrument or contract.
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