Bonus

Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year.

What is this establishment: Industrial or Commercial?

You and the redg. office/HO of the establishment  is located in which state?

What was your designation and nature of duties?

You have posted that:

-----“SIR I AM RESIGN MY JOB FROM MY COMPANY WITHOUT 3 MONTH NOTICE .WHEN ACCOUNT SETTELEMENT MY COMPANY RECOVRED MY 3 MONTH SALARY FROM MY MONEY BENEFITS.SUM OF AMOUNT IS RS.52000.”

You may check if notice period of 3 months should be really applicable in your case and if you can find some faults.

> Notice period is a part of service conditions and job advertisement, offer letter, appointment letter, standing orders applicable to the company, statue should be referred to for concluding the notice period and hence notice pay applicable to the employee.

If standing orders are applicable and are certified and have been extended to the designation of the employee, you may refer to these.

If standing orders are applicable but are not certified, Model Standing Orders shall apply. As per Model Standing Orders the notice period is NIL during probation period and is max. 1 month after confirmation of service.

The notice period stated in standing orders shall be applicable and standing orders shall prevail upon appointment letter.

If notice period in standing orders is 1 month it can not be 3 months in appointment letter.

For application of standing orders the establishments need not be a factory.

You may go thru: Industrial Employment (Standing Orders) Act,

The term Industry does not mean factory alone. The Standing Order Act is applicable to all establishments to which the Payment of Wages Act, 1936 applies. Section 2 (e) (iv)…………..

> Notice period is also stated in Shops and Commercial Establishments Act of the state. 

Your lawyer may ask you a set of structured questions and may opine that you fall within the category of a ‘Workman’ as in ID Act and ‘Employee’ as in Shops and Commercial Establishment Act of the State, or not?.

If you are not covered as both and certified standing orders are also not applicable to you in such a case the notice period should be as per appointment letter/contract of employment.

> The notice pay should ideally be Basic+DA as employer disburses OT, Gratuity, Bonus, Leave encashment at this rate………………………

You may refer to the standing orders if applicable to you, appointment letter/contract of employment……………….. .

------“ ALSO MY COMPANY REFUSED TO GIVE ME DIWALI BONUS. CAN I GET DIWALI BONUS?“

If Payment of Bonus Act, 1965 is applicable to your establishment you may go thru it.

It is applicable to all employee be it even managerial except excluded category of employees {Section 32}

If your establishment has entered into an agreement or a settlement with its employees for granting them bonus under a formula different from that under the Act, you may go thru the T&C of the settlement.

For the purpose of calculation of bonus a salary or wage includes a basic salary or wage and dearness allowance…………………{Section 2(21)}

> “COMPANY RECOVRED MY 3 MONTH SALARY FROM MY MONEY BENEFITS.SUM OF AMOUNT IS RS.52000.”

This implies company has deducted notice pay @ 52000/3=14000/PM.

Is it @ Basic+DA or Gross or CTC?

Every employee who is drawing a salary or wage upto Rs. 10000.00 per month (w.e.f. 1-4-2006) and who has worked for minimum period of 30 days in a year is entitled to be paid bonus. {Section 2(13) & 8}

If your salary as defined in the Act and quoted above is up to Rs.10000/PM company has to pay Bonus on monthly salary amount of Rs3500……………………….(8.33% Min or Max20% as already announced by it).

If your salary is above Rs.10000/PM Company can still pay Bonus or equivalent amount as Ex Gracia by its will.

Other option is that:

THE PAYMENT OF BONUS (AMENDMENT) BILL, 2012

has been introduced in Rajya Sabha. If it passed and notified in the Gazette with retrospective effect you should be eligible to get bonus.

You should approach your labor consultant/service lawyer with copies of all of your docs, including but not limited to job advertisement, job application, offer letter, selection letter, appointment letter, resignation submitted by you, acceptance of resignation, FNF statement, last salary slip etc……………..………………..spend quality time with your lawyer, give inputs, and understand the merits and proceed under expert advice of your lawyer.

 The lawyer that has seen all of your documents and has analysed your inputs can advise you the best.