bonus and gratuity

Asha Pole (Querist) 23 November 2009 This query is : Resolved
Incase of private company,if the appointment letter given to an employee does not state the clause of bonus and gratuity, would the employer still be liable to pay and suppose if the employer refutes to make such payment in the absence of such clause.Will the company face any dire consequences from the legal aspect.

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Raj Kumar Makkad (Expert) 23 November 2009
No legal liability rests with the company if no such agreement has taken place wbetween the employer and employee.

H. S. Thukral (Expert) 24 November 2009
If the Act applies to the organisation then the employer shall be liable to comply with the provisions of the same. Applicability depends upon the number of person employed. However a person has to satisfy the definition of an employee as envisaged in the acts before he become eligible for bonus and or gratuity.

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bonus and gratuity

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