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Served a big company for almost 4 years. I resigned on 20th July '2024 requesting to be relieved in 30 days and agreed to pay against the shortfall of the notice period that was 90 days as per the appointment letter. The resignation has been accepted, and the employer advised to serve 90 days, which I denied through a return email. I served more than 50 days of the notice period and again requested to be relieved, but HR did not agree. My new employer asked me to join or to terminate the offer. I wrote a final email to my old employer that I will leave today (11th Sept '2024) and requested to give me a full and final statement enabling me to pay if any dues and to settle my accounts. But there was no response on the same. I left the old organization and joined the new employer on 12th Sept '2024. Since then, I have been sending multiple emails to HR to let me know if I have to pay to settle my accounts. As per my calculations, there is no outstanding after adjusting my leaves and salary of 11 days. But I am not getting any response from them. Now they have held my bonus and PLI amount (part of my CTC as per the appointment letter). Requesting subject experts to guide me on the next course of action. Should I go for legal actions? If yes, which forum (civil court/consumer forum, or labor office, etc.)? Regards, Krishna Sharma
From India, Noida
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If you proceed legally, you will spoil the relationship with the employer, and it may even make your career suffer a lot. Moreover, if your salary per month was more than Rs 24,000, it would be difficult for you to find a legal solution. Then the only possibility will be to file a civil suit. Of course, non-payment of statutory bonus can be addressed before the labor authorities, but performance-linked allowance is totally out of the question. PLI is usually paid as a reward, and the management will reserve the right to withhold it if the employee is not expected to serve for the remaining period. Again, it depends on the contract of employment. But the labor officer will not interfere in such components of "CTC" other than statutory (minimum) wages or non-payment of wages as per the contract of employment. That also if the amount exceeds Rs 24,000, then he will decline to interfere, saying that you are out of the scope of the Payment of Wages Act.
From India, Kannur
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The bonus you have mentioned - is it a statutory bonus? If so, and if your Basic & DA for the financial year to be paid was less than or equal to ₹21,000, you are eligible for a statutory bonus. If the organization refuses to pay you a bonus, you can proceed to the appropriate authority under the PB Act for your bonus claim.

Regarding profit-linked incentive (PLI) as mentioned in your appointment order as CTC, it has no legal standing. Usually, most organizations pay it if the employee is on the payroll of the organization on the date of PLI disbursement.

S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions +91 98310 81531 skb@usdhrs.in

From India, New Delhi
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