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Nandlal (Sr Project Eng)     10 June 2014

Pending bonus of yr 12-13 not paid by company in fnf

I left my organization in March 2014 after association of 2.3 Yrs. During my appraisal cycle of Yr 2012-13 company given me 10% hike and equal amount of 1 time bonus (having it printed on company letter head). This bonus amount was supposed to be paid in September 2013 but at the last moment company decided to pay it in 2 parts - First Half in Sept 2013  and 2nd half in March 2013 Salary.

When company deposited the cheque (without informing me) as my FNF, amount was very less. After checking with HR, I came to know my pending half bonus was not included in this calculation.

So just wanted to check how i can fight for my Bonus? I believe this unethical practice of company and they should be taught a lesion. So requesting all experts to suggest me on this.

 

Many thanks...

 

 

 



Learning

 4 Replies

Kumar Doab (FIN)     10 June 2014

Demand hard and soft copy of FnF statement and decline to accept it in writing citing errors and less payments.

It is felt that you are:

-not referring to statutory Bonus to be paid as per Payment of Bonus Act.......................................that should be paid by 30th NOv to avoid penalty.................

 -referring to performance Bonus. Since it is in writing and pledged by company it has to be paid.

You can agitate on breach by company preferably thru your lawyer.

 

HR belief is that it is not to be paid to employee that has separated as it won't fetch them any return in future.

1 Like

Nandlal (Sr Project Eng)     16 June 2014

Hi Kumar Sir,

 

Thanks a lot for your reply.

 

Yes. I'm referring to Performance bonus. Let me attached that letter for better insight. I have already sent 2 emails to company demanding pending bonus and F&F copy but it seems that they have became deaf.

 

I’m planning to send legal notice but not sure about procedure, charges and legal position of claim. So could though some lights on same.

 

Many thanks…


Attached File : 749709628 app letter.png downloaded: 169 times

Kumar Doab (FIN)     17 June 2014

AS per attachment the One Time Performance Incentive is w.e.f.01.04.2013………………………..

It is in writing, additional remuneration as per terms of employment, and non payment would be breach of its own committement by employer.

Since it is related to performance and it is fruit of your labor.

What is the date for its payment?

What is the Tgt. Vs Perf. Criteria, do you have printed version, and did you achieve it?

Do you have the record?

If yes submit the calculation now or upon declinature by company.

 

Apparently you did achieve and that is why company paid half of it in Sept!

Before or in Sept did the company communicate in writing the reason for paying half of it only and to defer the payment of other half in March? If yes what was the reason?

The reason for non payment could be as already posted.

 

>>>The issue that you have posted is not faced by you alone but endless number of employees as employers and their attorneys i.e. Line Managers, HR personnel violate rights, norms, rules, laws with impunity and without any fear within the walls of the offices for simple reasons that;

Employees are ill informed, are not united do not become members of employee’s unions-trade unions, do not form ‘Work Committees’ in the companies,  many of them are fearsome, do not approach Labor Consultants/service lawyers and do not agitate…………………

If employee’s are united they can negotiate service conditions, form ‘Work Committees’ that is one of the authorities as per ID Act and employers shall not be able to exploit them…………………

When union are there to represent the line managers, HR , employers shall not violate the rights of employees with impunity.

 

 

Are you aware that employees can form ‘Works Committee’ and it is an authority and President /Chairman is on rotation from employees/employer and it has equal number of employees from employer/employees?

 

The Industrial Disputes Act, 1947

CHAPTER II: AUTHORITIES UNDER THIS ACT

3. Works Committee

 

 

What is this company/establishment: Commercial, Industrial, Small Enterprise?

 

It should have displayed its registration Certificate at a conspicuous place e.g near entrance/on notice board! Or You may find out on your own.

 

How many employees are employed in it?           

 

What is your designation and nature of duties?  

 

Has your service been confirmed in writing?

The establishment works for how many days/week?

 

Have you ever worked beyond 8hrs/day:::48 hrs/week and do you have its record and did the company pay OT on its own along with payment of monthly wages?

Has the company included leave encashment in FnF?

 

 

If employer defaults on wages then it might have defaulted on PF,ESIC, TDS, Contribution for insurance, etc too………………………….
Employee can approach:

>>>Inspector under Payment of Wages Act; Applicable to all employees drawing wages up to Rs.18000/pm as per def. of wages in the act……………………………….within 1 year.

Salary slip to all employees duly signed by both employer and employee should be issued. Demand salary slip(s) of all months.

You may refer to: Payment of Wages Act; Sec: 2: 3*[(i), (ia), 3*[(vi), 3, 4 ,5, 13a, 14, 15, 16, 17A, 20………….. and if the Inspector agrees to cover you may immediately submit requisite Form for recovery of wages.

 

{ 2. Definitions: 3*[(vi) "wages" means…………….

 

 (c) any additional remuneration payable under the terms of employment (whether called a bonus or

by any other name);

 

(d) any sum which by reason of the termination of employment of the person employed is payable under any law, contract or instrument which provides for the payment of such sum, whether with or without deductions, but does not provide for the time within which the payment is to be made;}




>>>Inspector under –(Name of your state) Shops and Commercial Establishments Act, Small Enterprise Act………….

One of the duties of the Inspector is to ensure that wages are paid on time and FNF of separated employee is also done properly and in time.

>>> O/o Labor Commissioner;
The Labor Inspector might also be officiating as Inspector under Payment of Wages Act, Inspector under Karnataka  Shops and Commercial Establishments Act, Small Enterprise Act…………………………..however you may lodge complaints mentioning the enactments separately.


----Employees Unions. They may help you.

----Trade Unions; CITU, INTUC, AITUC, BMS…………………..and local trade Unions in your state.



----RPFC thru nearest PF office. 
Does the company supply PF number, PF a/c slips for each year/or E Passbook? It has to.
----ESTC Inspector in jurisdictional ESTC office………….
(Applicable to all employees drawing wages up to Rs.15000/pm as per def. of wages in the ESI Act)
--- Form16: --ITO-TDS where you file ITR and jurisdictional CIT-TDS where you company files ITR. Non issuance of Form16 by deductor (employer in your case) is offence and employer can be penalized.

----Lawyer/Law firm

---Civil Court

Employees have been contemplating to file criminal complaints u/s 406, 420……………………………and to approach employer as creditors treating unpaid wages as debt on employer e.g;

https://www.lawyersclubindia.com/forum/details.asp?mod_id=72011&offset=1#.UvYBGEeBmXV

https://www.lawyersclubindia.com/forum/Full-n-final-settlement-100310.asp#.U0AEW0eBmXU

--ITO-TDS where you file ITR and jurisdictional CIT-TDS where you company files ITR. Non issuance of Form16 by deductor(employer in your case) is offence and employer can be penalized.

 

 

    

 

 

There are many threads that you may find relevant and pick up points including what all documents company has to supply you…………………e.g………….!!!

 

https://www.lawyersclubindia.com/forum/3-notice-period-relaxation-advice-103873.asp#.U5_b75SSwb8

https://www.lawyersclubindia.com/forum/Notice-period-102337.asp#.U5_cl5SSwb8

https://www.lawyersclubindia.com/forum/details.asp?mod_id=101910&offset=2#.U5_f55SSwb8

https://www.lawyersclubindia.com/forum/Employer-threatening-101905.asp#.U5_igpSSwb8

 

It shall be appropriate to consult in person with all docs on record a competent and experienced labor consultant/service lawyer and proceed under the expert advise of your lawyer.

Sudhir Kumar, Advocate (Advocate)     17 June 2014

well elaborated by Mr Kumar Doab.  Nothing more to add.


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