Eligibility Diwali Bonus after resignation?

Kalpesh Chaudhari (Querist) 04 November 2010 This query is : Resolved
Dear Hon. Experts,

Mr. X resigned from a pvt. Ltd. company after 4 years service in June 2010. It means he had worked for the financial year 2009-10 with the company. So is he eligible for Diwali Bonus of 2010 or not???

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Kirti Kar Tripathi (Expert) 04 November 2010
yes, he is eligible

s.subramanian (Expert) 04 November 2010
yes.

Uma parameswaran (Expert) 04 November 2010
yes.

Guest (Expert) 04 November 2010
YES,AS HE WAS A PERMANENT EMPLOYEE AND WORKED FOR MORE THAN ONE MONTH IN FINANCIAL YEAR.EVEN DAILY RATED EMPLOYEES WORKING MORE THAN ONE MONTH ARE ELIGIBLE FOR BONUS.PLEASE NOTE.GOOD LUCK.

Raj Kumar Makkad (Expert) 04 November 2010
Yes.

B K Raghavendra Rao (Expert) 04 November 2010
Diwali Bonus is not a bonus under Payment of Bonus Act. So an employee who has resigned does not derive any right from this Act. Any person who has resigned does not get either special bonus or ex-gratia and he cannot demand it as a matter of right. The company may or may not grant it.

Kalpesh Chaudhari (Querist) 04 November 2010
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. Will it matter in terms of Diwali bonus and pro-rata bonus?

(2) As he had left in June which means he is not a current employee, can the company decide NOT to give either diwali bonus or pro-rata bonus or is it mendatory for the company??

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

Devajyoti Barman (Expert) 05 November 2010
Yes

Kirti Kar Tripathi (Expert) 05 November 2010
even it is not under PBA but since it is Ex-Gratia as such it became part of wages earned by an employee by rendering service in the period for which it is being paid under the law, which he right to claim

aman kumar (Expert) 11 November 2010
YES

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