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Venkata Kumar (Dy. MANAGER)     05 December 2012

Ctc with bonus

Dear Experts,

I want to put one case study related to Bonus payment for exmpted employee as per Bonus Act and rules. Coming to case, Company have been paying one month gross salary as Bonus for all employees irrespective of their wages till last financial year, but due to financial crisis, this year changed their policy not to give bonus to exempted employees whose wages are more than Rs. 10000/-. But they have mentioned the bonus amount in CTC letters to all employees, in that one of employee who was in HR department (Managerial Level) , left the organization, now he claimed for bonus stating that bonus is mentioned in CTC letter and it is a committment , you have to pay as per that other wise he will go to Labour dept and file compliant showing the  CTC letter.. Management denied to pay  the amount , becuase of his unpleasant behaviour and more over he mingled with other Trade Union leader try to threaten the Management.

Here I reqeust all your opinions on the above case

1. Does the employee can a raise complaint in Labour department based on CTC letter, that the bonus is payable to him?

If No need procedure or clause to provoke his action.

If  Yes , On what ground he is eligible for that.

2. Please guide  how to handle or procede if he raised complaint in Labour department.

I request all your early and positive responses at the earliest. I will be thankful to all your support and guildelines.

Regards

Venkat



Learning

 1 Replies

Kumar Doab (FIN)     05 December 2012

It is felt that If company has issued you appointment letter with CTC and CTC sheet it has become part of contract. The amounts mentioned in CTC are agreed upon, firmed up, committed, promised, and contractual obligation.

You may insist upon the CTC and demand for the amount mentioned under the head Bonus in your CTC sheet.

Valuable advice of learned experts/members is sought.


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