‘Return excess bonus’: Honda to employees

The Japanese car manufacturing company says it overpaid employees’ bonuses and wants them to return the extra amount by today, 22 September

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Honda, the Japanese car manufacturing company, realised that it had paid extra bonus to its employees by mistake, at the Ohio unit. Therefore, it has now asked its employees to return the excess amount by 22 September.

The Company has also conveyed to the employees that if they fail to repay the amount that was overpaid to them within the nine-day period they were allocated, the same will be deducted from their salaries.

Although the exact amount that was overpaid is yet to be known, some media reports suggest that the employees have been asked to repay about 8 to 10 per cent of the bonus.

The Company has been experiencing falling profits of late.

As per law, Honda, as an employer, has the right to seek a refund of the overpaid bonus. The Company, can legally recover overpaid bonuses or wages under the Fair Labour Standards Act, applicable to employers across the US.

Meanwhile, in India, Honda expects business to grow as it prepares to make a re-entry into the sports utility vehicle (SUV) space in a year’s time. As per media reports, the Honda electric scooter will be launched first, by April 2023.

In India, Honda has presence via a wholly-owned subsidiary. The Company had gone through a lot of challenges when it had shifted focus to electric vehicles, which had resulted in restructuring and rehaul of operations.

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