Resignation during Probation period - leave encashment.. CiteLegal

tilo Started The Discussion:

Hi All,

I wish to know if an employee resigns during probation period, is he eligible for 'Year End Bonus'
mentioned in his appointment letter CTC description. Also what other benefits can be withdrawn, during the settlement with him after he serves the notice period of probation period.
Please suggest.


malikjs -  Member Since: Oct 2008
bonus is statutory obligation and you have to pay him whether it is written in appointment letter or not .
if someone has resigned and serve notice period as per appointment than why u want deduct from his benifits. you have to pay bonus ,leave encashment and his salary or any salary part of CTC that u have to pay legally .
j s malik

Brijesh Patel -  Member Since: Nov 2008
Dear friends

As per the standing order act, No any notice will required for leave the services during probation period.So you can not deduct Notice pay. if you appoint any person on probation period you can not terminate him during this period except in case of theft or etc..After completion of probation period you may confirm him or terminate him or extend the probation period.

Brijesh Patel

K C S Kutty -  Member Since: Nov 2008
By "Year end Bonus", you mean, bonus paid at the end of the year based on profit ? Or it is Bonus payable under the Payment of Bonus Act 1965 ?
If it is under the Payment of Bonus Act 1965, the employer has to follow
the provisons of the Act; clauses in the appointment letter will not help to escape from the liability of payment of bonus.

mohan_anupam -  Member Since: Nov 2008
Hi All, Could you please help me about "what comes under the Payment of Bonus Act 1965" Thanks & Regards Anupam

jitendersyadav -  Member Since: Sep 2008
Dear Anupam,

The Payment of Bonus Act says that : -
- Every Employee who has worked for a period of 30 Days minimum & his basic is less than 10001/- is entitle for bonus.

- The minimum bonus he will get 8.33% on Bonus ceilling or which ever is less.

- The maximum bonus he will get 20% on bonus ceilling or which ever is less.

These are the prime context of Bonus Act.


mjs2411 -  Member Since: Aug 2012
I agree with Sri J S Malik. Bonus, if paid as per the Act, has to be paid provided the employee has worked for a minimum of 30 days and his all told salary is less than Rs. 10,000.An Employer cannot avoid it on flimsy grounds.

Chirag patel general motors -  Member Since: Nov 2014
One person found on job work susing smart phone and showing nude pic and vedio company Issues show coze notice for 48 hours. so my suggestion is that what types of action taken by company management like Suspen Terminet ETC pls correct Answare tell Me .


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