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Anoop Kumar (DGM)     11 September 2014

Increment arrears and annual bonus

Hi,

I have 2 questions.

1. INCREMENT & BONUS

I was working with an MNC and resigned in Feb 2014. By that time our annual increment and annual bonus were not declared. However, we were communicated by e-mail that the increment will be declared in first week of April and will be effective from 1st Jan. Also the bonus for year 2013 was to be declared in April 2014. As I resigned in Feb, they did not give me any increment arrears or bonus.

Can I claim for both these things through a Court of law?

2. DIFFERENCE IN LEAVE ENCASHMENT AND NOTICE PERIOD RECOVERY RATE

I had served a notice period of 16 days against of 30 days and they had recovered the amount for short notice on GROSS SALARY basis. On the other hand, I was eligible for leave encashment which they paid to me on BASIC SALARY and for lesser number of leave days. I had no record available with me to prove that it should be for more days. The difference was around 8 days.

Can I ask to pay and recover on the same rate through a court? Can I ask them to give records of leave balance?

 

Please advise



Learning

 3 Replies

Kumar Doab (FIN)     11 September 2014

1. The email can help you to demand increment w.e.f. 1st Jan.

2. If it is statutory Bonus As per Payment of Bonus Act then it has to be paid by 30th Nov or employer can be penalized.

If it is some customary bonus or as per some agreement then it has to be paid since it is promised.

3. The amount and rate of leave encashment and notice pay is well defined in enactments applicable to the establishment e.g.

(Name of the state) Shops and Commercial Establishments Act..................................

The company can offer superior benefits but can not apply inferior to the provisions of the enactments applicable to it.

 

Approach an able Labor Law Consultant/Service Lawyer with all docs on record and proceed under his expert advice.

 

Prashant Mane (Legal Officer)     15 June 2015

One thing to ask if incentive clause is not mentioned anywhere and employer is paid incentive for previous year and denied for next year can be claimed in appropriate court of law ?

Kumar Doab (FIN)     15 June 2015

@ Prashant Mane,

The perfromance incentive is also fruit of labor.

If it is yearly incentive then It is to be announced/discontinued before the period for incentive starts.

After the worker has toiled or an year employer can state that incentive is not available for past year.

As a legal officer you would appreciate that : Hearsay,rumor,gossip are not rules,policies.

 

 


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