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Upendra (A)     20 May 2016

Company not ready to pay 100% performance link variable pay

Dear Experts,

I am posting this situation with you all to get your ezpert advice. I had joined a company in Dec-2012 and in my joining letter & offer letter there was a part of salary as (Performance Linked Variable Compensation) PLVC and next to it was written that " the same is subject to the individuals annual performance on pr-rata basis". During my working I came to know that this  PLVC has some part from companyies profit and some part from my personal tragets which we achieve in financial years. The working year in my company was Jan to Dec, now in Nov-2015 I have left the company so I had worked 11 months as per my company working year and I have completed my targets and have a signed copy of it with me. Depending on my individual performance in my target sheet I am eligible to get PLVC of 100% which is almost 1 Lac rupees. Also this PLVC is part of my CTC & salary. 

When I asked my HR about the PLVC they said the Top management has decided to only give you 25% of PLVC from your elegibility. THere fore I need your expert suggestion on this, WHat should I do? I want company to pay me 100% as I have worked dedicatedly till my last working day. During my joining they said pro-rata basis and now they are not paying me back. Please suggest.

regards,

Upendra Tripathi

 

 



Learning

 4 Replies

Kumar Doab (FIN)     20 May 2016

Perfromance related payments e.g. Incentive/pay etc like wages is fruit of labor.

Its payment is made alongwith wages on pay day and is shown in salary slip and is subjected to tax treatment.



You have posted that you have the copy of (Performance Linked Variable Compensation) PLVC and performance data?

The question arises : Have you asked in writing? And Has the HR personnel  replied in writing?

As per your post : When I asked my HR about the PLVC they said the Top management has decided to only give you 25% of PLVC from your elegibility. 

 

Again The question arises: Has the HR personnel  named Top management in writng?

 

Apparenty the extarct posted by you  " the same is subject to the individuals annual performance on pr-rata basis", may help you. Apparently the HR personnel and so called Top Management is hand in hand and is breaching its own promise/committement/allurements.

 

The HR personnel is not just a paper pusher. He/she has the copy of (Performance Linked Variable Compensation) PLVC and performance data and is under obligation to cite the breach to its Top Management and/or cite the logic for 25% payment to you.......................and also to write the names of persons in so called Top Management!

 

While initiating such queries the querist should post the basic information e.g;



You may post the exact extract from appointment letter on termination/resignation.

What is your designation and nature of duties in appointment letter and on record?


You were in which state?


What is this establishment; Commercial/Industrial ?

Does it have Certified/Model standing orders and does it apply to your designation?

Are you a member of employees/trade unions?


What was your last drawn salary?

You were under probation/confirmed?



You may write to good offices of appointing authority, MD and attach the copy of incentive circular, performance data, and mention that  on dated..............Mr/Ms..........designation.............has stated that the reason for Non payment of Pro rated   (Performance Linked Variable Compensation) PLVC is that Top Management has decided to pay only 25% in contarst and braech of clause number................in appointment letter dated..............issued to you................. and no such speaking order with logic/reason  is issued and supplied to you till date. YOu may request that names of person n TOp management be made knwon to you in writing and Pro rated 100%  payment of PLVC be released to you by redg. post so as to reach you in say next 3 days.

 

 

 

Upendra (A)     20 May 2016

Dear Sir,

First and foremost thankyou for your reply. 

The communication (verbal) with my HR has just started today. He said that Top management has decided that the rule which was made last year will be followed this year also.When I said this rule is not fiar then he said you send a mail and I will also reply you, therefore before writting mail to HR I tried to take suggestions from all you experts here so that from starting only I can have good stand on my case. And your reply have some good enough points which now I will write in my mail. 

regards,

Upendra

Upendra (A)     20 May 2016

Dear Sir,

First and foremost thankyou for your reply. 

The communication (verbal) with my HR has just started today. He said that Top management has decided that the rule which was made last year will be followed this year also.When I said this rule is not fiar then he said you send a mail and I will also reply you, therefore before writting mail to HR I tried to take suggestions from all you experts here so that from starting only I can have good stand on my case. And your reply have some good enough points which now I will write in my mail. 

regards,

Upendra

Kumar Doab (FIN)     20 May 2016

You have not replied, pointwise, to all points.


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