1. #1
    Unregistered

    Do the company has right to decrease my bonus if company is running in loss?

    I was getting good bonus every year. From past 2-3 years company is under loss and they are lots of cost cutting work in our company. We were getting fixed bonus every month. Now in this month because of loss they have reduced the bonus. Do the company have right to decrease bonus if itís running under loss?

  2. #2
    neha agarwal Array
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    Sep 2012
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    167

    Re: Do the company has right to decrease my bonus if company is running in loss?

    Hi,

    Yes, actually bonus is totally depends on employee's performance and company's performance. If company is going in loss and not getting any profit then they can decrease the bonus salary. Bonuses are of two types. One which you will get monthly and second one which you ill get yearly in March when appraisal declares. So if company is going in loss then about this they will declare in the end of financial year that is March. So they will cut only you that yearly bonus which you are supposed to get in march or april salary.Monthly salary will not get affected.

  3. #3
    Suraj Array
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    69

    Re: Do the company has right to decrease my bonus if company is running in loss?

    Yes, they do have rights to cut your bonus, even some companies reserve their rights to deduct the salary of their employees in case of need. You can check your offer/appointment letter and talk to your boss regarding the same. Your bonus is considered as variable income and it is not part of your salary so they have rights to deduct or increase that.

  4. #4
    san8 Array
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    Sep 2012
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    118

    Re: Do the company has right to decrease my bonus if company is running in loss?

    Yes a company can cut bonus paid to the employees when the company is facing losses. But make sure your salary is not affected by that, you have the right to receive the agreed salary under any conditions the company is facing. Know that the bonus is paid when you make extra contribution to the company or when the company gets extra gains, so when the company is not making such gains it can reduce the bonus or completely remove it too. If there is a certain amount mentioned in the company's terms and conditions to be paid as bonus to the employees if he/she achieves something under any situations of the company then you can question the company for deducting the bonus beyond the mentioned level.

  5. #5
    Param Array
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    Re: Do the company has right to decrease my bonus if company is running in loss?

    Dear Friend!

    Of course! Company do has right to cut your bonus if company is going on in loss over and over. But you are not got any deduction in salary if you are working continually. Bonus means by the company that if company is getting more profit from you then they promote you to continue your work to mention company's profit. You bonus is considered as a variable salary/income by the company and its not a part of salary. they can deduct your bonus at the time of company's loss.

  6. #6
    shivam Array
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    Re: Do the company has right to decrease my bonus if company is running in loss?

    Yes, company has the full right to deduct bonus as per the company's net profit. If the company is not getting the required profit and is going under loss, then it can deduct your bonus. As you know, that the company's bonus amount completely depends on the employees performance, and as the net performance of all the employees is not going good, and company is suffering through loss, so they have the right to reset the bonus amount as per company's profit and requirement.

  7. #7
    Ashok Array
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    2,293

    Re: Do the company has right to decrease my bonus if company is running in loss?

    Dear Aspirant,

    Bonus is not the right to get by the employees.Bonus is a part of profit of the company during a financial year.If the company is running under loss,It can decrease Or even stops paying the bonus to employees temporarly till it gets running in profit.

    When the company was running in profit ,you were getting good amount of bonus,It is good.Now, the company is in loss,so you all should see why it is running in loss.Is there any deteriation in works of the employee or there are some other reasons.Try to make the company in profit so that you could get the bonus amount as previous.

    Thanks.

    Ashok

  8. #8
    Tabaahi Array
    Join Date
    Oct 2012
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    105

    Re: Do the company has right to decrease my bonus if company is running in loss?

    Dear..

    If a company is running in losses that means that company is not financially stable and sound and you have to wait for your bonus as you can not expect a good bonus from a company who is already running in losses. Instead of this you should with your colleagues work hard and try to convert your companies losses into profit and after that you can demand any amount as your bonus as you have showed your efforts and now you are eligible to get what you are demanding.

    All the best

  9. #9
    Amit Kumar Pal Array
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    Sep 2012
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    63

    Re: Do the company has right to decrease my bonus if company is running in loss?

    Originally posted by "Unregistered"
    Do the company has right to decrease my bonus if company is running in loss?
    Dear Aspirant,

    Company yes rights to reduce bonus in bad time period of company.Actually bonus is depend upon employees' and company both performance. If company is getting extra profit or facing good condition then they give bonus to their employee's who is more contribute in company work. But if company is facing bad time then the company have rights to reduce bonus. But in these type of situation the company only reduce your bonus not monthly salary amount, because basic salary is fixed in any situation which is facing organization or any firm.

    So if your company is running in loss then company has rights to decrease your bonus. Don't worry every company face up and down so just give your best performance and when company again gaining profit they increase your bonus.

  10. #10
    abbebo Array
    Join Date
    Aug 2012
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    454

    Re: Do the company has right to decrease my bonus if company is running in loss?

    Hi.. Your company certainly has the right to decrease your bonus or take away your other benefits whenever it wants as these things are dependent on the financial condition of your company..

    If your company is running under losses then it will certainly decrease your bonus and may also takeaway your other benefits as it does not have ample resources to provide the same..

    And as an employee of the company you should think about the plight of your company and not just about yourself..You should try to stand with your company in such conditions..

    And if you are not satisfied you may resign and find other suitable job..

    Best of luck.. Thanks

  11. #11
    bsr Array
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    Re: Do the company has right to decrease my bonus if company is running in loss?

    Hi friend,
    Company calculates your CTC including all the factors like bonus , hra,and PF etc.

    Yes company has right to decrease or take back allowances i.e. Extra benefits based on companies performance. If your company is in profit it Will give more than it promised to you.

    If it is in loss then it Will decrease your benefits . But there will be no changes in the salary.

    Regards,
    BSR.

  12. #12
    yuvi36 Array
    Join Date
    Nov 2012
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    103

    Re: Do the company has right to decrease my bonus if company is running in loss?

    Hi friend,

    Yes,the company has every right to cut down the bonus being given to the employees as and when required.
    See,according to the company,it is incurring this loss because of below par performance of the employees of the that company.
    So it wants to send a wake up call to the employees by doing such things.

    But don't worry,once the company starts making profit,it will again increase your bonus.
    So work hard!

    Best of Luck!


  13. #13
    eduforall Array
    Join Date
    Oct 2012
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    37

    Re: Do the company has right to decrease my bonus if company is running in loss?

    Hi,

    A company has right to increase or decrease the amount of bonus.

    Bonus is given when a company earns profit.

    It is also given if the performance of an employee is extremely good.

    Similarly, if the company incurs loss, than the bonus amount can be reduced or may also be not given at all.

    So, it happens with the companies. You cannot complain about that.

  14. #14
    Expert Array
    Join Date
    Nov 2012
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    39

    Re: Do the company has right to decrease my bonus if company is running in loss?

    Hello Friend !!


    You cannot even expect the Bonus, if the Company is running in Losses.


    When the Company is running in Loss :

    You may asked to work more to reach the targets.

    Your Working hours may also extend.

    You need to work sincerely and motivate all the colleagues to work honestly and bring profits to the Company.

    Your smart work is appreciated at this peak time.

    You can even suggest the best to HR's or Management to bring the Company to its original state.

    Feel that you are the Owner of the Company and the growth of the Company depends on your Work, then you will work more in a right way leading to profits.

    And also make other colleagues to feel the same, since Team Work yields more.

    If everything goes normal, then you can ask for the Bonus.

    And the amount may or may not be same as give earlier.

    Good Luck, I hope your Company will come back to the original State.

  15. #15
    vijaybanna Array
    Join Date
    Sep 2012
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    232

    Re: Do the company has right to decrease my bonus if company is running in loss?

    Dear friend

    yes it is right if the company is in loss then your bonus will surely decrease as the bonus depends on the performance of the employee and the company performance if something is not working then the bonus will surely decrease..

    You can not complaint about it to the the management..

    As the company supports you in your bad time then you should also support the company in its bad time..

    And whenever the company gains its profit then the bonus wil be further increased ..

    THAT's ALL..!!!

    ALL THE BEST for the future..

  16. #16
    Boss Array
    Join Date
    Jul 2012
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    1,649

    Re: Do the company has right to decrease my bonus if company is running in loss?

    Yes, really bonus is completely depends on employee's performance and company's performance. If company goes in loss and not obtaining any profit then they'll decrease the bonus wage. Bonuses area unit of 2 sorts. One that you'll get monthly and second that you unwell get yearly in March once appraisal declares. therefore if company goes in loss then concerning this they're going to declare within the finish of monetary year that's March. in order that they can cut solely you that yearly bonus that you're presupposed to get in march or April wage.Monthly wage won't get affected

    a company will cut bonus paid to the workers once the corporate is facing losses. however make certain your wage isn't full of that, you've got the proper to receive the in agreement wage below any conditions the corporate is facing. apprehend that the bonus is paid after you create further contribution to the corporate or once the corporate gets further gains, therefore once the corporate isn't creating such gains it will scale back the bonus or fully take away it too. If there's an explicit quantity mentioned within the company's terms and conditions to be paid as bonus to the workers if he/she achieves one thing below any things of the corporate then you'll be able to question the corporate for deducting the bonus on the far side the mentioned level.

    Bonus isn't the proper to induce by the workers.Bonus could be a a part of profit of the corporate throughout a year.If the corporate is running below loss,It will decrease or perhaps stops paying the bonus to workers temporarily until it gets running in profit.

    once the corporate was running in profit ,you were obtaining sensible quantity of bonus,It is good.Now, the corporate is in loss,so you all ought to see why it's running in loss.Is there any deterioration in works of the worker or there area unit another reasons.Try to create the corporate in profit in order that you'll get the bonus quantity as previous.

  17. #17
    Sandeep Yadav Array
    Join Date
    Aug 2012
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    52

    Re: Do the company has right to decrease my bonus if company is running in loss?

    Yes the company has the right to decrease your bonus if the company is running in loss. As we all know that if company will get the profit then the employee will also get benefit and more bonuses. If company is already in loss then we cannot expect for the bonus. So the company has all rights to decrease/increase any type of things.

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