Dear All
I need one clarification on bonus payment to resigned employees.
We normally declares bonus during Diwali for the previous Financial year. now in between if employees resigned is it mandatory to pay the Bonus along with Full & Final settlement or we can hold till we declare the Bonus.
A valuable update with any notification could be highly appreciated
Thanks
Pradeepan
From India, Raipur
12I need one clarification on bonus payment to resigned employees.
We normally declares bonus during Diwali for the previous Financial year. now in between if employees resigned is it mandatory to pay the Bonus along with Full & Final settlement or we can hold till we declare the Bonus.
A valuable update with any notification could be highly appreciated
Thanks
Pradeepan
From India, Raipur
The payment of bonus act is very clear
You are required ton pay bonus to all employees within 8 months from the end of the financial year.
There isn't any specific provisions for separated employees. So the same rule applies to them also.
Therefore you are free to give it along with all the others within 8 months. Most companies give it along with full and final because otherwise they have to find the employee and give him the money later. If you do not give it to him then it must be noted in the unpaid bonus register and after 3 years deposited in the labour welfare fund.
Another thing to be noted is that you are talking of Diwali bonus not statutory bonus. If you are paying customary bonus (like at Diwali or Dasara) then you can adjust that at th time of annual bonus. It means in effect you paid bonus during the year and not at the end of the year and therefore you done need to pay anything more now (there are circumstances you need to verify). However it's actually unfair b cause you probably didn't pay to those who are newly joined
From India, Mumbai
You are required ton pay bonus to all employees within 8 months from the end of the financial year.
There isn't any specific provisions for separated employees. So the same rule applies to them also.
Therefore you are free to give it along with all the others within 8 months. Most companies give it along with full and final because otherwise they have to find the employee and give him the money later. If you do not give it to him then it must be noted in the unpaid bonus register and after 3 years deposited in the labour welfare fund.
Another thing to be noted is that you are talking of Diwali bonus not statutory bonus. If you are paying customary bonus (like at Diwali or Dasara) then you can adjust that at th time of annual bonus. It means in effect you paid bonus during the year and not at the end of the year and therefore you done need to pay anything more now (there are circumstances you need to verify). However it's actually unfair b cause you probably didn't pay to those who are newly joined
From India, Mumbai
Hello,
Sharpening the focus of Mr. Saswata Banerjee, permit me only add by way of clarification the following:
1) There is no need to pay the Bonus to the separated employee along with the F & F settlement.
2) Bonus is always paid for the previous financial year.
3) You need to pay Bonus within eight months from the close of the financial year to covered employees and who have put in more than 30 days service during the concerned year.
4) If Bonus is paid to employees not covered under Payment of Bonus Act 1965, as a term of employment then you must make the payment along with F & F settlement only.
Regards
samvedan
June 30, 2015
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From India, Pune
Sharpening the focus of Mr. Saswata Banerjee, permit me only add by way of clarification the following:
1) There is no need to pay the Bonus to the separated employee along with the F & F settlement.
2) Bonus is always paid for the previous financial year.
3) You need to pay Bonus within eight months from the close of the financial year to covered employees and who have put in more than 30 days service during the concerned year.
4) If Bonus is paid to employees not covered under Payment of Bonus Act 1965, as a term of employment then you must make the payment along with F & F settlement only.
Regards
samvedan
June 30, 2015
-----------------
From India, Pune
Dear All bonus must be paid within one day after is FNF otherwise within 8 month after compilation of period after resigned it is necessary to pay bonus within one day after his FNF
From India, Faridabad
From India, Faridabad
If the person is covered under bonus act, you need not pay along with f&f
However, paying it then is the easiest way. If you don't you need to find him and pay later, which is more complicated.
If he is not under bonus act, but eligible for bonus (under settlement or terms of appointment letter) then it should be paid along with full and final. There is no justification for paying it later.
One problem is some companies don't know at time of resignation how much bonus will finally be declared. In that case you have no option but to wait till accounts are finalised and bonus amount computed.
From India, Mumbai
However, paying it then is the easiest way. If you don't you need to find him and pay later, which is more complicated.
If he is not under bonus act, but eligible for bonus (under settlement or terms of appointment letter) then it should be paid along with full and final. There is no justification for paying it later.
One problem is some companies don't know at time of resignation how much bonus will finally be declared. In that case you have no option but to wait till accounts are finalised and bonus amount computed.
From India, Mumbai
Bonus is for whatever period the worker worked. At the F and F bonus is worked out 81/3% of the gross wage (Min wage) or statutory amount of Rs. 3500/- per year and proportional amount for the months.
From India, Nellore
From India, Nellore
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Amendment to Payment of Bonus Act 2015.jpg
Bonus act amendment gazette copy.pdf
Bonus-amendment _206.doc