Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
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Harsh Jain   10 October 2015

Performance bonus not being paid

I am working with an International BPO in Gujarat. In my appointment letter there is a 

component "Performance Bonus" which is annual. There is no condition applied on it. My 

management discussed my performance for the first 6 months which was GOOD. After this 

nothing was discussed and no feedback is given. After I completed my 1 year in the company I 

asked for my Performance Bonus, I was told that you will get it on diwali as it was diwali 

bonus and incorrectly mentioned as Performance Bonus. When I discussed further, I was told 

that as your performance for the year was not good, the bonus may be questioned. They do not 

have any document signed by me which talks about my poor performance. They told me that my 

performance was not good only when I refused to accept the increament letter. If I would 

have accepted the letter they were not going to tell me anything about the performance. 

I want to know that if the company has not discussed my performance with me for 6 months, 

can they deny the payment of performance bonus just by saying that your performance was not 

good ?
Is it fair with any employee ?


 7 Replies

Kumar Doab (FIN)     10 October 2015

If it is performance bonus then it is not Diwali bonus or statutory bouns.

If it was wrongly mentioned then it was duty of the company to correct it in writing and signed with you.

If perfromance bonus is annual then it is duty of company/employer/bosses to intiate whatever appraisal it wants to do, well  in advance and disburse the performance bonus in time.


Non payment may amount to breach of own contract drafted and signed by employer.


What was stated in increment letter that prevented you from signing the acceptance?


Annual Increment and performance bonus should be two different payouts! Or are these same?


You could have retained the copy of increment leter and refused to sign in writing.........................OR you could have inserted the carbon between two coies and written on increment letter that the acceptance of increment does not amount to acceptance of non payment of perfromance bonus.


Payment of Wages Act also cover any Bonus..............................and the Act does not discrminate between 'Workman' and 'Non Workman'.


Such matters  are best resolved first by applying one's own skills,..........................then involving 'Works Committe' or GRC or IC ...........employee's/trade unions................then lawful authority like INspector appointed under (Gujarat) Shops and Estabs Act, Payment of Wages Act, O/o Labor Commissioner................................and/or civil court...............complaint us/406,420, winding up petition............... 







1 Like

Harsh Jain   12 October 2015

Thanks for your reply Mr. Kumar. Below are the answers:

1. As per the company policy, the annual increment is done based on the performance for which the report is prepared and discussed quarterly. In my case the performance was discussed for the first 6 months, after that nothing was discussed. When they give me the increment letter I refused to accept as it was less. After I refused to accept they discussed it with me and said that your performance for the year was not good. If I had accepted the letter in first attempt they would have not told me about the poor performance. Was it right ?

2. In my appointment letter the performance bonus is mentioned as annual. When I asked them for the same then they told me that it will be paid on diwali as it was diwali bonus and incorrectly mentioned as performance bonus. With this no condition is mentioned as how it will be calculated.

3. I have resigned from my job and serving the notice period. After my resignation I again asked them to pay the performance bonus with September month's salary as I have completed 1 year on 31st August. Then they sent a mail saying performance bonus may be questioned as it depends on performance and my performance for the year was not good.

4. I want to know if neither they have discussed my performance with me nor there is any letter signed by me or accepted by me or given to me which says that my performance was not good. Can they deny the payment of performance just by saying that the performance was not good ?

5. In this company they mention the diwali bonus as statutory bonus and ex gratia in the appointment letter. The total of this is equal to 1 month's gross salary (for previous financial year). The same is paid on diwali but if an employee leaves before diwali, they do not pay any bonus. When asked they said that the employee should be on rolls of the company at the time of pay out.

Kumar Doab (FIN)     12 October 2015

1-4: You have been taken for a ride.They ( you alone shall know if it is HR personnel/line managers alone or even owner/promoter/employer) have made a pass on you.Evidently they are unwilling to pay, since they have sent an email to you.

You may download, while you are still in service,............. the printout of email and all other record including performance bonus criteria/parameters on which perfromance is measured, performance record,appraisal matrix,6months appraisal that shows your perfromance as good and any document or record that establishes that your performance was not bad/satisfactory/averagebut good/best/exceptional.


Once you have downlaoded everything escalate to good offices of appointing authority,MD,Chairman writing under proper acknowledgment thru Redg. post / personal email and downlaod 'Read-Received' reciept, followed by  letter thru Redg. post.


Once you are out of employment employer may not part with any record.


5. You have mentioned "Statutory Bonus' . It is as per Payment of Bonus Act............................and wage celieing is Rs.10000/pm............................Employer can pay it even if wages are above wage celieng by its sweet will. It has to be paid before 30th Nov or employer can be penalized.


Do you have evidence that this bonus/Ex-Gracia was paid to other employees. If yes stake your claim.

For statutory bonus it is not mandatory that employee should be on rolls on the date of disbursment.

If you have fulfilled the conditions e.g. you were employed during bonus period say Apr-Mar, then it should be paid. In case employee is not on on rolls say Apr-Mar..............................employer can pay on pro rated basis.Employee do succeed to claim bonus and employer do loose on claims of bonus by employees.


All payouts mentioned in appointment letter/CTC etc are promised amounts and employee can demand.


You may show all docs on record to an able Labor Law Consultant/service Matters lawyer....................employee's union leaders and proceed further under expert advise of your counsels.


1 Like

Harsh Jain   12 October 2015

Thanks Mr. Kumar, Statutory bonus is mentioned in our CTC as Rs. 700 pm and remaining amount is ex gratia. e.g. if my monthly gross salary is 30000 the bonus in my CTC is given as Statutory bonus rs. 700 pm and ex gratia rs. 1800 pm now my bonus will be (700*12 = 8400) + (1800*12 = 21600) = 30000. this is paid on pro rata basis. if I have joined on 1st September 2014 then it will for 7 months from sept'14 to march'15 I will get it if I am on rolls of the company at the time of pay out.

If I leave in december 2015, I will get it on diwali. I want to know will I get this for the period from April'15 to december'15 on next diwali or I should get it with my FnF in January'16 ? Should I get both (statutory bonus and ex gratia) or only statutory bonus ?

Kumar Doab (FIN)     12 October 2015

It has already been posted that "Statutory Bonus' . It is as per Payment of Bonus Act...................." and is for calender year and to be paid before end of comin Nov.


Other Bonus/Ex.Gracia is mentioned in CTC so you have a chance......................


You may show all docs on record to an able Labor Law Consultant/service Matters lawyer....................employee's union leaders and proceed further under expert advise of your counsels.


Lakshmi   05 March 2016

Hai All,

I have one more quire, does Company performance Bonus covered under bonus act

Kumar Doab (FIN)     05 March 2016

This query has already been answered.

Go thru the posts carefully.

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