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satpal (Sr. Engineer)     25 August 2014

Non payment of bonus, variable pay and leave encshment

Dear Experts,

Kindly help me on below mention points/Queries:- I have worked for a company for almost 30 months. I resigned on 13 Dec 2013 and relieved on 16 Jan 14. My Transition was very nice but company didn't pay Bonus (They termed this as BSC i.e. Balance Score Card), Variable pay and payment of earned leave. Bonus and Variable pay was mentioned in my appointment letter but nothing was paid. I sent many mails, keeping my company's MD in CC but HR head denied my claim. Pls refer below points for the same.

 

1. Bonus (BSC): My Ex-company pays the bonus considering the year from Jan to Dec. I worked for full year i.e. Jan 13 to Jan 14 and when i put this to HR, they denied by reason that I was not assessed by my HOD for bonus so HR is not responsible for any payment. Moreover when I left this assessment was not started and even after they didn't approach for assessment. My Question is can they deny my bonus on these grounds while they clearly mentioned my bonus amount on my appointment letter and Service certificate (Relieving letter).

2. Variable pay : As per my appointment letter it was performance based pay. I asked my HR to pay the same but they did not reply on this. Can I claim it legally?

 

3. Leave encashment : As per policy of my ex employer an employee can not accumulated more than 45 days of Earned Leave either it will lapse or you can claim for leave encashment . By the date of 16 Jan 2014 I was having 46.5 days of EL. HR denied to payout the leave encashment stating that person must have 60 days EL for encashment. I asked them to provide any communication if they had given to employees but they didn't provided. I do have all the proofs that I was having 46.5 days EL as well as policy on leave encashment. Can I legally claim this money?

 

I have sent enough mails to management and now HR has asked me to take any legal step. You are requested to guide me on this.

 

Regards

Satpal



Learning

 7 Replies

Kumar Doab (FIN)     25 August 2014

Based on your post it seems ;;;;Yes you can!

 

>>> Bonus: 

---The Bonus as per Payment of Bonus Act has to be paid by Nov 14 or the employer can be penalized. YOu can approach o/o labor Commissioner. 

---The Bonus if some other bonus e.g. performance bonus has to be paid since you were in employment for whole period and it has been duly inserted in appointment letter, relieving letter too. The company has apparently breached its own contract and trust.

 

>>> Variable pay:  HR version it is investment and there shall be NO ROI in case of an outgoing employee. It might be as per some internal policy of the owners for HR.

YOU can claim. The studied silence is bad conduct.

 

>>> The leave policy can offer superior benefits compared to enactments applicable to the establishment e.g. Shops and Commercial Establishments Act ...................................but can not offer inferior even if company claims that it has negotiated the policy with employees.

Decline to accept FnF statement in writing and receive FnF wages under protest.

Spend quality time with your elders in the family, competent and experienced well wishers, and along with them..............................approach employee's union leaders, trade union leaders, Labor Consultant/Service Lawyer/law firm, and let them draft a fitting representation addressed to appointing authority, MD.................................

 

You may demand to supply the acceptance of resignation, service certificate, relieving letter, FnF statement, Form 16 as per correct FnF statement, payment of FnF wages by Bank DD only thru Redg .Post only so as to reach in next 7 days.....................

If required you can approach:

Employee's unions

Trade Unions

Inspector under Karnataka Shops and Commercial Establishments Act

Inspector under Payment of Wages Act

Labor Inspector

Civil court

 

And also pursue the option of criminal complaint u/s 406,420, winding up petition of course after your lawyer has examined the merits and docs and inputs and has explained the available options and remedies and you have understood the merits………………

ASHISH TIWARI (manager)     27 August 2014

Dear Experts,

My name is Ashish Tiwari and i am working as an area sales manager with a branded Jewellery retail company.

Sir, my problem is my company's account dept are not accepting my traveling and mobile expense for reimburse from Nov 13 to March 14 and they give reason for this unacceptance is that i am submitted these expenses not on time.Sir i noted you that they never forward any information mail regarding this time line.So i courier my all expenses from Nov 13 to June 14 on 17th July 2014.After the submission they give me this reply only on verble communication only not in written.

Sir i also inform you that they also not reimburse my expenses which i made between April 2013 to Oct 13 Value 48505 Rs..This amount is shown in my ledger prepared by company.but they never give any time line to reimburse the same.

Sir , I also want to discuss with you that from last 5 year i am working with this company but they never give any bonus .So can we have any law to get the bonus from them.

Now help me suggest me for the same.

Thanks & Regards

Ashish Tiwari 

Mob:-8307378218

Kumar Doab (FIN)     27 August 2014

You have posted that:

----“So i courier my all expenses from Nov 13 to June 14 on 17th July 2014.After the submission they give me this reply only on verble communication only not in written.”

 

Obtain POD from courier.

 

Did you record this call/meeting (audio/visual)? They can very well deny having received the courier as well!

 

Record and keep the record safely and submit minutes of discussion to good offices of appointing authority,MD etc. and build favorable record.

 

You are at fault for delaying submission of reimbursement.

 

----“Sir i also inform you that they also not reimburse my expenses which i made between April 2013 to Oct 13 Value 48505 Rs..This amount is shown in my ledger prepared by company.but they never give any time line to reimburse the same.”

 

Do you have acknowledgment of submission of bills and also copy of the ledger?  

Did you lodge this  claim also in time?                                                               

 

Submit representation good offices of appointing authority, MD etc. to reimburse the amounts and build favorable record.

 

 

----“Sir , I also want to discuss with you that from last 5 year i am working with this company but they never give any bonus .So can we have any law to get the bonus from them.”

 

If it is bonus as per payment of Bonus Act 1965 you may go thru: Sec:1,2(13),8,26(4,5),31A,34,

 

 

 

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.

 

 

An employee, irrespective of whether he is managerial or not, so long as he came within the definition of employee by virtue of drawing salary falling within the maximum prescribed under Section 2(13) of the Act, he would be eligible for payment of bonus under the Act.

 

 

You may find another thread as relevant at;

 

https://www.lawyersclubindia.com/forum/Diwali-bonus-in-fnf-in-pvt-ltd-co-eligibility-107380.asp#.U_3qKtKSwb8

                                              

If you are eligible then you may submit a gentle representation to good offices in writing under proper acknowledgment and if denied you can lodge complaint with O/O labor Commissioner (state/central) as per appropriate govt. in your case.

 

You have the option of approaching:

Employee’s unions, trade unions,

 

Inspector under (Name of your state) Shops and Commercial establishments Act

Inspector under Payment of wages Act

 

 

After going thru the draft of your post It is suggested that you should consult elders in the family, competent and experienced well wishers…………………………………and along with them meet your lawyer……………………………………and proceed under expert advice of your lawyer…………………………and avoid acting on your own. Let your lawyer structure and draft all of your representations.

 

 

VirtualName (Software Engineer)     11 June 2015

Hi, 

I worked in an IT service company in Bangalore, India on Feb 1st I putted my resignation paper and being on notice period of 3 months. However before putting the paper I have applied for the leave(18 working days) for my merriage purpose that comes in between notice period time. So my notice period has been extended but on consulting with HR to adjust some days with leaves my notice period has extended to only 11 working days instead of 18 days. In the whole aggreement he haven't said anything in regards of deduction or the effect on bonus eligibility.

There is a perfomance bonus part in my CTC, but they are denying to give my yearly bonus for the FY 2014-15 by stating that as per policy employee should be active till May last working day to be eligible for the performance bonus. As my last working was mid May 15 so I'm not eligble for the bonus. Also they have deducted about half payment form the May month's salary by saying that I have took excess leaves. 

First they have issued me payslip that contians the bonus part but not credited the bonus to my account. After asking them 2-3 times they replied by saying that was mistake so they sent me another payslip. 

Now I'm asking them to send me the FORM 16 many time. They aren't replying back to me.

 

Help me on this...

Kumar Doab (FIN)     11 June 2015

@VirtualName,

 

Always initiate a new thread!

The notice period of 3 months may not necessarily be applicable.

What is the notice period if company initiates separation by termination:3 months?

The notice period of 3 month/90 days is beneficial for the company and detrimental to the interest of employee. The employee is at no equal footing with employer and all contracts/appointment letter is drafted by employer that employee has to sign?

Is it stated in appointment letter that all rules and policies of employer ( and even from time to time) shall be applicable to employee?

 

Is there any printed version of performance bonus supplied/circulated to employees and does it have clause of payment in May in writing at all?

If NO then there is no condition of payment in May.

 

The performance period, as per your post is FY 2014-15 that you have served fully.

Until or unless there are no return from market in Apr/May that has to be adjusted in performance, the only thing remaining is payment of Performance related payout.

Here once again the company has taken 2 months time to sit on the due payment without any interest/penalty/damages.

If you have any leave record with you and compared with leave policy if you have noted errors then contest it. Moreover compare the leave policy with Karnataka Shops and Estabs Act. The leave policy can offer superior benefits but not inferior.

If any waiver of notice period was assured to you, mention it.

 

 

Don’t remain entangled with HR personnel and consult your employee’s unions (there are many in IT sector also now)/Trade Unions leaders e.g. CITU/INTUC/AITUC/BMS etc…………..and able Labor Law Consultant/Service matters lawyer/law firm and let them draft your communications now………………..that you may submit to good offices of appointing authority,MD,Chairman, under proper acknowledgment.

 

 

 

 

   

 

 

 

 

 

 

 

 

Kumar Doab (FIN)     15 June 2015

Query also posted at:

 

https://www.lawyersclubindia.com/forum/details.asp?mod_id=122388&offset=1#.VX62sVJ-hkg

Patience Mccoy   10 July 2018

Those people who want to know about nonpayment procedures related to bonuses can get that with read of this share. There are many students who are using essay shark services for writing of their best essay projects.


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