Dear Experts,
Can anybody tell me that, is it required to pay the Bonus amount for the resigned employees along with their Full & Final settlement?
or the factory can pay the Bonus to the resigned employees as per their regular Bonus payment date by intimating the employee with the Bonus date.
Regards,
Yuva
From India, New Delhi
1Can anybody tell me that, is it required to pay the Bonus amount for the resigned employees along with their Full & Final settlement?
or the factory can pay the Bonus to the resigned employees as per their regular Bonus payment date by intimating the employee with the Bonus date.
Regards,
Yuva
From India, New Delhi
Yes. An employee covered by by the Payment of Bonus Act 1961 is entitled to be paid bonus at the time of F& F settlement, if he worked for more than 30 working days during the relevant accounting year for which teh bonus has been declared.If the bonus, talked by you is one other than the statutory bonus and payable under contract or settlement, then the question whether the bonus is payable or not depends up on the terms of the contract /settlement.
B.Saikumar
.
From India, Mumbai
B.Saikumar
.
From India, Mumbai
Dear Mr.Sasi,
Thanks for your reply an dif possible kindly share me the Law requirement Section,which state states that the statutory has to be paid along with the F&F and same would be helpful for me.
Regards,
yuva
From India, New Delhi
Thanks for your reply an dif possible kindly share me the Law requirement Section,which state states that the statutory has to be paid along with the F&F and same would be helpful for me.
Regards,
yuva
From India, New Delhi
Sec.(8) of PBA says that every employee is entitled to be paid bonus in an accounting year, bonus under the Act, if he has worked in the establishment for not less than thirty working days in that year.Now once you become entitled to bonus under Sec.(8), the liability sticks to the employer to pay it within 8 months from the close of the accounting year under Sec.19.The Act does not specifically say it shall be paid at the time of F&F settlement. It is a prudent administrative practice to pay all moneys due to an employee at the time of F&F settlement going by the spirit of the term "Full and Final" settlement..
B.Saikumar
From India, Mumbai
B.Saikumar
From India, Mumbai
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Amendment to Payment of Bonus Act 2015.jpg
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THE PAYMENT OF BONUS ACT.doc