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Amu (Nil)     21 April 2014

Non-payment of promised bonus

Hello Experts,

I worked for this company in Mumbai around 2.5 years. I resigned from my job in December 2013 and got relieved in Jan 2014 after serving the stipulated 1 month notice period. Since the company was going through financial crisis in 2013 our salaries were delayed for around 4-5 during that period. In order to maintain trust in the company they promised an extra bonus of 20% for all employees in June 2013. We have received a mail regarding the bonus declaration.

But even after 4 months of leaving the job I have not received the said bonus. Though they have cleared all other dues but not responding regarding payment of bonus.

My question is what can I do if the company does not oblige by its promise of bonus-payment? what kind of actions an employee can take? Please guide me a step-wise procedure.





 5 Replies

Kumar Doab (FIN)     22 April 2014

The statutory Bonus is Min.8% and Max.20% as per Payment of Bonus Act.

It is felt that so soothe the employees company announced max. Bonus @20%.

You may show the email quoted by you to your labor consultant/service lawyer.

Such bonus should be paid by Nov 14 to avoid penalty/punishment.

You may write to good offices of appointing authority, MD, with a copy to Head-HR and demand reply/payment by bank DD thru redg. post.

Or you can approach o/o Labor Commissioner. 

1 Like

Amu (Nil)     22 April 2014

Thank u so much Mr. Kumar.

Actually i asked our director regarding the bonus payment. Now he is saying that the staff has not performed there duties well and there were errors in the work done. Because of which company has incurred losses and have to redo the work. 

Though we were performing our work as per SOP's. And they never complained about such errors when we were working. Now the company has decided to not to pay the said bonus as was promised stating that the employee is liable for company's loss.

So wanted to ask can i be made liable for any unintentional losses after leaving the company? And on such ground are companies eligible to deduct promised bonus?




Kumar Doab (FIN)     22 April 2014

The statutory Bonus has to be paid.

You have worked as per SOP. Company has never issued any show cause notice. It has settled FNF.

Did you get FNF statement, service certificate, relieving letter? Obtain all of these!

The affected employees may join hands and unite and jointly approach their labor consultant/service lawyer, in person.


You may go thru THE PAYMENT OF BONUS ACT, 1965:Sec:17 & 18, 21, 22, 26(4,5), 28, 39,


Attached File : 711510766 payment of bonus act 1965.pdf downloaded: 102 times
1 Like

Amu (Nil)     22 April 2014

Sir, I have received full payment of all my dues. Only my EPF withdrawal is under process. The company gave "Contract termination letter" and a "Relieving letter". I have never received and show cause notice for not performing duties correctly during my tenure. Even in relieving letter nothing is mentioned about my wrong doings pertaining to work.

I read section 18 and as per that the employer is entitled to deduct for losses. But is it legal to make an employee liable for losses even though no notice has ever been given pertaining to work quality failure? If you can show some light on this then i can finally decide to whether to finally approach a lawyer or not.





Kumar Doab (FIN)     23 April 2014

PF can not be attached even by decree of court. Funds in PF a/c of employee maintained with EPFO are not in control of employer. Employer has to attest the PF forms and submit to concerned PF office within 5 days of submission by employer and has to supply the acknowledgment issued by PF office (for employee) to employee by effective mode of communication.

It is better to transfer the PF and keep PF a/c active for 10Y at least and be eligible for pension.


You have clarified in all of your posts that you have followed SOP while in employment and employer did not issue any show cause notice while in employment, employer has accepted resignation, released FNF statement, relieving letter and has not issued any notice till date for having caused any loss.

The loss has to be proved.

As per you it is only now when you have inquired about bonus the Director has verbally stated some loss!


The bonus should n't be blocked like this verbally.

Online discussions have its own limitations.   

What was the reason stated in Contract termination letter?

You should approach a lawyer in person, show whatever docs are on record including contract termination letter, spend quality time with your lawyer and proceed under expert advice of your lawyer.

Your lawyer may opine to claim for interest, damages for delay of wages………………

Your lawyer must be able to counter and handle the contentions of employer and can update you on merits in your case.


Or if you feel that you can handle it on your own then you may approach Inspector appointed the Act, O/O labor Commissioner, or seek help from trade Unions etc.............  

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