Show Cause Notice issued to Union Bank of India for not paying bonus to Employees

The Chief Labour Commissioner has issued a show cause notice to Union Bank of India for not paying bonus to casual employees. Earlier a conciliation meeting was held between the bank union and bank management and it was decided to pay bonus to casual employees. But till now, the bank has not yet paid bonus to the employees and thus, now the Chief Labour Commissioner (CLC) has issued a show cause notice to the bank.

The notice has been issued under Section 28 of the Payment of Bonus Act, 1965. The notice has been issued for not paying bonus to casual employees in contravention of the provision of this Act and for failing to comply with the requisition made under this Act in the matter of Industrial Dispute raised by All India Union Bank Employees Federation against the management of Union Bank of India

A conciliation proceeding was held earlier on 11.12.2024 on the captioned Industrial Dispute and the bank had agreed to pay bonus within 31st December 2024 as per the Payment of Bonus Act, 1965 to the eligible casual workers who are engaged in various branches of the Bank. A requisition was also made to the bank for submitting within 31st January 2025 details of the payment of bonus after the payment process was completed.

The union again approached the office of Chief Labour Commissioner (CLC) before and after of 31st December 2024 complaining that the bonus was not paid to overwhelming section of casual workers despite agreeing to do so. In response to the complaint of the union, the CLC, vide its letter dated 06/02/2025 and 19/03/2025, advised the bank to intimate the status of implementation of the minutes of the meeting recorded on 11.12.2025 for further course of action at this end. But, there has been no communication from the bank in this regard.

In view of the above, the bank has been hereby called upon under Section 28 of the Payment of Bonus Act, 1965, as to Show Cause within 7 days’ of the receipt of this notice as to why appropriate action should not be initiated against the bank under Section 28 of the Payment of Bonus Act, 1965.

Conciliation Meeting: What Happened in Meeting and What Decisions were Taking

All India Union Bank Employees Federation had approached Chief Labour Commissioner over Non-payment of Bonus to the casual/temporary employees including personal drivers.

Mr. A.R. Lakra, Chief Manager (HR) as well as Mr. Chanchal Kumar, Sr. Manager (HR) of Union Bank of India represented on behalf of Bank and Sri Jagannath Chakraborty, General Secretary of All India Union Bank Employees Federation represented on behalf of Union in the instant dispute on the matter of non-payment of Bonus to the casual/temporary employees engaged in the various branches of Union Bank of India including Kolkata Zone for which the list of the casual workers was submitted by the union.

The management submitted an inter office letter issued by the Bank management vide letter No. HR:HRAD:19944:2024 dated 12.11.2024 and directed to make the payment of Bonus to all the eligible casual workers engaged by the Bank in various branches as per the Payment of Bonus Act, 1965. The representative of the Bank management has stated that as per the aforementioned direction all the eligible casual workers who were engaged in the various branches of the Bank shall be paid bonus as per their entitlement within 31st December, 2024.

The union representative also acknowledged the letter issued by the bank management for the payment of the bonus as submitted by the management and did not have any objection to the submission of the management for the payment of bonus to all the eligible casual workers within the stipulated time line as per the direction of the bank authority vide aforementioned letter dated 12.11.2024.

In view of the above and taking into consideration the submission of the management, the Bank Authority was advised to ensure the payment of Bonus to all eligible casual workers who are engaged in the various branches of the Bank and the implementation of the guidelines for payment of the Bonus issued by the Bank vide letter dated 12.11.2024 without any further delay within the stipulated time line as submitted by the representatives of the Bank within 31st December, 2024. After the payment process was completed the details of the payment were to be submitted to the conciliation officer by the bank management within 31st January, 2025, the union was at the liberty to monitor and ensuring the payment within the stipulated time line. As agreed by both the parties the case was disposed off as ROC.