• Resignation but bonus is due

Hello,

My contract states that "the bonus will be paid by the end of one year from the Date of Joining". 14 days ago i completed my one year and received my salary today but it did not include the bonus. The HR says that it will be sent in next month's salary. I am planning to put my resignation soon but am afraid that they will not pay the bonus due. In my contract there is no mention of the bonus policy and the only words for bonus are as i quoted above.

Are they bounded to give me salary even if i resign? If they don't can i take legal action on them?
Also the bonus should have been paid this month or am i misunderstanding the clause?

Thanks
Asked 4 years ago in Business Law

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9 Answers

1. As narrated by you, the bonus has to be paid to you after completion of one year of service, which has to be calculated from the date of your joining. Hence you are entitled to the bonus.

2. Delay your submission of Resignation letter till you are given bonus and salary.

3. The management is bound to pay you salary even if you resign, subject to the terms and conditions of your appointment order. If you are not given the salary, legal action can be initiated against your employer.

4.  Your understanding is correct that the bonus should have been paid to you by your employer.

Shashidhar S. Sastry
Advocate, Bangalore
5413 Answers
330 Consultations

Wait for one month 

 

2) get your next month salary and bonus then only resign 

 

3) you should have been bonus on completion of one year 

 

4) since you completed one year on 15 th December you should get bonus with your salary for month of December 

Ajay Sethi
Advocate, Mumbai
96990 Answers
7833 Consultations

Dear Querist

Bonus is the discretion of the Company and not the right of the employee unless there is a clause in appointment letter regarding the same. hence it will be better that continue with the company one more month so that you can get the Bonus. they are bound to pay your salary or not it is depend on the terms and conditions of the appointment and the policy of the company (if policy is in writing).

 

Feel Free to Call

Nadeem Qureshi
Advocate, New Delhi
6307 Answers
302 Consultations

You need you send them legal notice and later file appropriate proceedings in labor court or before labour commissioner if they don't agree to pay you. 

Prashant Nayak
Advocate, Mumbai
32493 Answers
201 Consultations

The clause very clearly states that you become eligible for bonus after completion of one year of your employment.

Therefore the bonus will be added to the salary of the following month by which you complete your one year service.

Thus in my opinion, the reply given by your HR should be taken into consideration and you may wait for that.

If you do not get a favorable result even after that then you can resort to legal action for recovery of your dues. 

T Kalaiselvan
Advocate, Vellore
87192 Answers
2342 Consultations

sir

before resigning ask them to given the written details of payable amount and its components. if there is dispute then resolve it before resigning. anyway you must be having legal recourse as per Singapore laws as they should complete the payments and reimbursements.

Gopender
Advocate, New Delhi
384 Answers

1. Then wait till you receive your bonus. If you resign now then employer may delay the bonus.

2. Once your resignation is accepted the employer is bound to pay salary for the period for which you worked.

3. The bonus should have been paid within one year, according to the clause extracted by you.

Ashish Davessar
Advocate, Jaipur
30776 Answers
972 Consultations

- As per Specific Relief Act, if any employee quits before the notice period, the Employer can only recover the Notice pay, and the Company cannot force to serve the entire notice period.

- Further, the resignation decision is the employee’s decision, and the employer cannot sue for breach of contract, if the employee leaves without serving contractual notice. 

- Further , the employer is bond to comply the terms of the agreement with the employee. 

- Hence, if contact not having clause for bonus , then you cannot claim the same legally , and it will depend upon the employer discretion. 

- Further , you are entitled to get salary if dues , otherwise you can get it legally. 

Mohammed Shahzad
Advocate, Delhi
14537 Answers
222 Consultations

1. It all depends on what have been mentioned in the employment contract.

 

2. As per you, they are to pay you the bonus after your completion of one year of service.

 

3. If they do not pay then you shall have to file a Money suit claiming the said amount bit in that case your legal, expenses might overshoot the amount claimed.

 

4. So, it will be prudent on your part to negotiate with the HR and manage to get the bonus without allowing them to understand that you shall be leaving them on receipt of the said bonus amount.

Krishna Kishore Ganguly
Advocate, Kolkata
27461 Answers
726 Consultations

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