LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Rohan Joshi   30 April 2024

Service contract termination: joining bonus payout query

Dear Experts,

I am in need of guidance and help from experts in this forum on a dispute with my employer. 

I joined my current company on 19th Feb, 2024. The employment contract mentioned the below important terms (actual extract) -

Probation & Confirmation: You are required to undergo a probationary period of six (6) months from the date of commencement of your employment. The company reserves the right to extend this period as necessary to better assess or observe your fitment for the role. Upon completion of your probation, you will be informed of your confirmation in writing. Lapse of probationary period des not constitute to confirmation of employment. 

NOTICE PERIOD: The duration of notice period will be 60 days from either side. No relaxation in the notice period shall be permitted.

Joining Bonus: You shall be entitled to receive the joining Bonus of Rs. 4,20,000. We will disburse the amount after completion of 3 months with the company.

Today is 30th Apr 2024 and i have received a mail in the morning stating there has been a change in the company strategy due to which my employment contract is terminated effective today, i.e. 30-Apr will be my last working day.

The Query: Since the employer suddenly ended the employment contract within a day, and while i am ready to serve the notice period of two months as per the employment agreement, am i liable to receive the joining bonus payout promised at the time of employment. I have joined this company and completed 2.5 months and even willing to complete serving the notice period if required, but the company hasn't given me the opportunity to do so by terminating the contract within one day. I had to fight to even get the salary for two months in lieu of the notice period promised by the employer. 

My argument is - Since i didn't resign and breach the contract, and this breach has been done by the employer, am i liable to get the payout of the WELCOME bonus since i joined and served 2.5 months in this role with the company?

If the employer declines on this, what should i do?

Any guidance and help on this would be greatly appreciated.   


 3 Replies

T. Kalaiselvan, Advocate (Advocate)     30 April 2024

Since you have not completed the minimum period of three months of service, you are not eligible for welcome bonus  irrespective of the fact that the company terminated your employment.

If the termination is felt to be illegal you can take up the issue legally.

If your terminal benbefits have not been paid then you can sue the company for recovery of your dues including the arreares of salary and the severance pay, if any. Severance pay is the compensation and/or benefits an employer provides to an employee after employment is over.

Rohan Joshi   30 April 2024

Many thanks for your expert opinion, Sir !! Appreciate it immensely. 

T. Kalaiselvan, Advocate (Advocate)     01 May 2024

You are welcome for your appreciations.

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topics

View More