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Subramonian (Software engineer)     28 June 2012

Performance bonus delayed and not paid

Hello sir,

I joined HCL technologies in nov 2010 with 18 months bond. I have submitted my appraisal to my manager on jan 2011. But my manager did evaluate my appraisal for many days,then i reminded him of it and he evaluated me and gave me meets expectation by the end of mar 2011.Then again it was pending with Business approver for a long time and i enquired with HR and the appraisal moved to HR by the last week of may.I resigned the company on May 31st and now currently serving notice period. I did not get my appraisal letter released still.Again when I contacted HR ,they told because Manager has delayed submitting my appraisal(Manager is to be penalised by the comany ) and my letter won't be released as I'm not on company rolls(I'm now serving the notice pjeriod of 3months). As I have been given meets expectation i 'm entitled for performance pay out and monthly increment. But company is not paying saying they won't pay because I'm on my notice period.There is no fault of mine any where.  PLEASE HELP ME WITH THIS .In case i have to file any case please let me know....Thanks in advance



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 1 Replies

Kumar Doab (FIN)     28 June 2012

You have posted that” and my letter won't be released as I'm not on company rolls(I'm now serving the notice period of 3months).”

 Notice period is counted in service. So the statement of HR that during notice period you are not on rolls is wrong. Has the company stated so in writing?

Has the company stopped paying salary/wages from the day you have service notice of resignation?

Usually appraisal and resultant increment letter is supplied by end of appraisal period say April and rewards are disbursed say by May. You have resigned on mat 31st.On which date the performance bonus is released to other employees. You have been subjected to indiscrimination by your boss and next boss. Why should be penalized by blocking your much awaited appraisal letter? If at all bosses are to be penalized company should recover your loss from them and pay you. HR is in this practice to deny a written document which shall entitle you for reward. You may show your offer letter, appointment letter, CTC sheet, employee rule book/service rules, standing orders, performance bonus circular/letter explaining terms and conditions, Tgt vs performance record to a competent and experienced service lawyer, and give inputs in person.

Another employee had initiated an interesting thread :

https://www.lawyersclubindia.com/forum/Re-Not-paying-variable-component-to-employees-in-notice-period-58798.asp

at the following link:

 

Forum Home > Labour & Service Law > Bonus > Not paying variable component to employees in notice period

 

 

Law on Negative Covenanats in Employment Contract

·  Are  Increments  automatic  or  linked  to  performance?  Incentives

and Performance linked payments:  Stoppage  of  increment  is  considered  a

punishment  and  unless  the  appointment  letter  is  clear  that  increments  are  not

automatic  and  will  be  dependent  on  performance,  non-payment  of  the

wages/components  can  be  contested.  In  some  companies,  parts  of  the  monies  are

realisable  only  on  accomplishment  of  performance  targets.  These  Incentive

Schemes are poorly drafted, and leave a lot of scope for dispute, and particularly at

the  time  of  resignation,  they  create  a  lot  of  problems  for  the  company.  Employees

also  claim  incentive  payments  for  the  period  they  have  worked  and  these  claims

have  merit  as  the  pay  structure  has  been  worked  out  in  such  a  manner  that  it  is

performance  linked.  Individuals  who  have  performed  and  achieved  targets,  for

which  some  payments  are  due,  claim  the  payment  as  per  the  company

announcements.

However,  just because  the employee has quit the employment,  the company denies

the  payment  and  puts  the  individual  through  hardships.  These  payments  can  be

realised with costs, but the company hopes that the individual will not file a case in

court  and  incur  additional  expenses  to  claim  some  benefits.  One  person  filing  a

claim emboldens others.

Incentive Bonus is not part of Wages

·  Are  Increments  automatic  or  linked  to  performance?  Incentives

and Performance linked payments:

Employees also  claim  incentive  payments  for  the  period  they  have  worked  and  these  claims

have  merit  as  the  pay  structure  has  been  worked  out  in  such  a  manner  that  it  is

performance  linked.


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