My company in Saharanpur is refusing to pay the annual bonus despite making profits, what are my legal rights?

Detailed Legal Analysis

Payment of bonus is a statutory right under the Payment of Bonus Act, 1965, and the Uttar Pradesh Rent Control Act 1972 provisions as adopted by your state, provided your establishment employs 20 or more persons. If your employer has earned allocable surplus, you are entitled to a minimum bonus of 8.33 percent of your salary or maximum of 20 percent, subject to the statutory ceiling on salary.

You should serve a written demand to the employer and if unpaid, file a claim before the Authority under the Payment of Bonus Act in Saharanpur. The Allahabad High Court has held that bonus is a deferred wage and not a charity, and its denial despite surplus is actionable.

Claims must typically be filed within one year from the date the bonus became due. The employer is required to file an annual return and maintain registers showing bonus calculations.