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srikanth (free)     22 March 2010



I want to know , is it necessary for a company to pay all the allowances and bonus for the employee as mentioned in appointment order even there is recession or business down. And is it necessary to pay even for the resigned staff



 3 Replies

Kanaksinh P.Boda (Educationist/Lawyer)     22 March 2010

It depends on the detailed terms and conditions which are normally  fine prints where the appointing authority reserves certain rights like continuation of emplyee / modifications of terms of service etc.

Vinod kashyap (Advocate & Legal advisor)     24 March 2010

as well as bonus is concern company bound to pay 8.33% statutory bonus as per bonus act under other provisions of act. 

Sarjooram Sharma (Assistant Labour commissioner)     25 March 2010

Yes it is necessary to pay wages to employees in the recession period or loss period also. If the company has completed 6 years, it has to pay bonus to its employees in loss or recession period also at the rate not less than 8.33%. The person who has resigned, is entitled for bonus for the period of a financial year till he worked.

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