Diwali Bonus after resignation

Sir, bonus has to be paid for the financial year 2009-2010. i.e, till March 2010. Since he has worked till June, he is eligible for bonus for 2009-10.

He is resigned from the service ,. he is not the employye of the company then how come he would get the deepavali bonus.  It is applicable to only present employees.  But management can take the decesion to give the bonus to employees who were during the financial year.

According to The Payment of Bonus Act ,1965

Every employee receiving salary or wages upto RS. 3,500 p.m. and engaged in any kind of work whether skilled, unskilled, managerial, supervisory etc. is entitled to bonus for every accounting year if he has worked for at least 30 working days in that year.

I suppose the ceiling has been enhanced to Rs. 10,000/- from 2006.

First of all Happy Diwali to all of you!

Now,

(1) I forgot to mention that at the time of leaving the company his Gross Salary was 12,000/- Rs. How will effect his eligiblility for  Diwali bonus and pro-rata bonus?

(2) As he had left in June which means he is not a current employee, can the company resuse to him  either diwali bonus or pro-rata bonus?? Is it mendatory  for the company under any law??

(3) Can he take any legal action against the company for refusal of payment of Diwali bonus and/or pro-rata bonus?

If he has worked in the previous financial year then he is eligible to get bonus subject to wage is with in limit of Rs 10000/ per month.

suchitra's views are correct. If the employee was eligible for the bonus, he has to be paid. The bonus has to be paid to him by way of cheque for the pro rate period. However, whether he was eligible for the bonus is dependant upon his structure of salary.

vasudevan

Payment of Bonus Act referes only to statutory bonus i.e every employee earning a basic salary upto Rs. 10,500/- shall be paid a statutory Bonus as per the applicable provisions under the said Act;while the bonuses like Diwali Bonus, performance bonus etc are the bonuses as per the policy of the company or the terms and conditions of the employment contract.

As per the queriest, he has already served the period for which the bonus has been declared by the employer, hence he/she is entitld for such declared bonus in any form as

(i) Giving of such bonus may at the discretion of the company but the moment company/employer exercises his/her discretion and declares the bonus, it becomes the right of the employee( who has served that period for which bonus has been declared).

(ii) In all such declared bonus cases, doctrine of legtimate expectation shall apply and the employer can not legally deny such benifits to the emplyee;

Please extend the discussion, should require any clarification.

KINDLY NOTE THAT BONUS IS PAYABLE TO WORKMEN COVERED UNDER PAYMENT OF BONUS ACT.

IN CASE THE PERSON IS COVERED AS WORKMAN  HE IS ENTITLED FOR BONUS FOR WORKING  FOR MORE THAN 30 DAYS IN ANY FINANCIAL YEAR.

BUT IN CASE SAID PERSON IS NOT COVERED AS WORKMAN AND IS UNDER OFFICER CATAGORY THEN IN CASE CO .HAS ANNOUNCED EXGRATIA BONUS OR PRODUCTIVITY LINKED BONUS  THE SAID PERSON CAN CLAIM BONUS FOR WORK MORE THAN 30 DAYS IN ANY FINANCIAL YEAR .

GOOD LUCK.

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Diwali bonus is not bonus under PBA but is ex-gratia payment. it is wages under the law and can be claimed before the competant court. since your salary is more than 6500/- application will not lie under PWAct, you can file application under section 33-C(2) of I.D.Act