Dear Hr's,
I work for a IT concern and it is started a year before, we our celebrated 1st annivesery just few days before.I asked bonus for diwali, but they refused to give bonus for diwali and they pinpointing that most of the employees are joint recently so they are not ready to give bonus. And they are saying that bonus is not compulsory in IT firm i don't know what to do? kindly let me know know your suggestions.
Regards
Remi
From India, Madras
1I work for a IT concern and it is started a year before, we our celebrated 1st annivesery just few days before.I asked bonus for diwali, but they refused to give bonus for diwali and they pinpointing that most of the employees are joint recently so they are not ready to give bonus. And they are saying that bonus is not compulsory in IT firm i don't know what to do? kindly let me know know your suggestions.
Regards
Remi
From India, Madras
Dear Remi,
You can take legal action. But if your basic salary is less than or equal to Rs. 10,000/- and company have earned profit in financial year. if company have occured loss in the first financial year than the company cant give you bonus.
Regards,
Raj
From India, Gurgaon
You can take legal action. But if your basic salary is less than or equal to Rs. 10,000/- and company have earned profit in financial year. if company have occured loss in the first financial year than the company cant give you bonus.
Regards,
Raj
From India, Gurgaon
Dear Remi,
The bonus act is applicable in Factory & Establishment where 20 or more persons are employed, and your firm is registered in shop & establishment act , as per bonus act your firm is also covered .
I agree with raj, but i would not suggest you to take legal action directly. you can use some other employees who is not working in your department to do so. however you can use this link to know about amendement in this act which is applicable from April2006.
http://pib.nic.in/release/release.asp?relid=32264
From India, New Delhi
The bonus act is applicable in Factory & Establishment where 20 or more persons are employed, and your firm is registered in shop & establishment act , as per bonus act your firm is also covered .
I agree with raj, but i would not suggest you to take legal action directly. you can use some other employees who is not working in your department to do so. however you can use this link to know about amendement in this act which is applicable from April2006.
http://pib.nic.in/release/release.asp?relid=32264
From India, New Delhi
Remi:
The suggestions you got are of true help. The only addition I would make is that Bonus is payable to you as per provisions of bonus act subject to your fulfilling the undernoted criteria
-- That you have worked for atleast 30 days in the last financial year
-- That you are an employee under the provisions of Payment of Bonus Act 1965(As amended)
Further the amount of bonus payable is determined on the basis of allocable/available surplus, set-on and set-off value.
Max amount of Bonus payable is 20% and minimum is 8.33% of your earnings in the last financial year. Even if the company is a loosing concern it has to pay the minimum bonus i.e. 8.33%.
If there is a recognized and registered Union then an agreement/ settlement is arrived between the management and the union and the copy of the same is sent to the Labour Department of the concerned area/state.
N.K.Tiwari
From United States, Cambridge
The suggestions you got are of true help. The only addition I would make is that Bonus is payable to you as per provisions of bonus act subject to your fulfilling the undernoted criteria
-- That you have worked for atleast 30 days in the last financial year
-- That you are an employee under the provisions of Payment of Bonus Act 1965(As amended)
Further the amount of bonus payable is determined on the basis of allocable/available surplus, set-on and set-off value.
Max amount of Bonus payable is 20% and minimum is 8.33% of your earnings in the last financial year. Even if the company is a loosing concern it has to pay the minimum bonus i.e. 8.33%.
If there is a recognized and registered Union then an agreement/ settlement is arrived between the management and the union and the copy of the same is sent to the Labour Department of the concerned area/state.
N.K.Tiwari
From United States, Cambridge
Dear All,
Thanks for your contribution, whether IT firms are covered in the Bonus Act.I have some more doubts too, so can anyone give your contact number so i can call u people and make myself clear.
Regards
Remi
From India, Madras
Thanks for your contribution, whether IT firms are covered in the Bonus Act.I have some more doubts too, so can anyone give your contact number so i can call u people and make myself clear.
Regards
Remi
From India, Madras
Dear Remi,
Bonus Act is applicable on your organization as it is covered under Shops and Establishment Act of your region.
You have said that your organization is a new one and only few days it has completed its one year. regarding this i would like to tell you that please go through Section 16 of Payment of Bonus Act, 1965. Its very important for a new organization.
Moreover if your Basic+DA is more than Rs. 10000, then you are not eligible for bonus.
As a matter of goodwill companies still pay bonus in the name of Performance Incentive or Ex-Gratia or by any other name.
Currently i guess that your company will follow the act only and no bonus will be given.
For any clarification you can call me on 9831000509
Regards,
Nilendra
Bonus Act is applicable on your organization as it is covered under Shops and Establishment Act of your region.
You have said that your organization is a new one and only few days it has completed its one year. regarding this i would like to tell you that please go through Section 16 of Payment of Bonus Act, 1965. Its very important for a new organization.
Moreover if your Basic+DA is more than Rs. 10000, then you are not eligible for bonus.
As a matter of goodwill companies still pay bonus in the name of Performance Incentive or Ex-Gratia or by any other name.
Currently i guess that your company will follow the act only and no bonus will be given.
For any clarification you can call me on 9831000509
Regards,
Nilendra
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