Performance incentive not paid

Such formation of opinion by the Company is arbitrary. File a recovery application before the Labour court, provided you fall within the definition of Workman and the Company an "Employer".

Hi Hemang - I was working as Senior Mangaer (Retail Operations) with CTC 10.5lac per annum so will this be under the definition of Workman.

Hi Prem -  In the appointment letter it was written as performance linked incentive, so I think the company can't make it zero because the company in their appraisal for year 2012 has rated me as "Exceptional" rating and so in 2013 when I left it is Zero ?

Learned experts/members have given valuable advice. Kindly follow it.

The majority of the employers aren't raising pay packages, however most of them plan to incorporate performance linked incentives, variable pay structure, in order to bring the guaranteed wages, to stop attrition of talented employees………………………

Employers have been finding ways and means and devising tactical approach to pay less and less. The pay package/CTC package……………..whatever it may be called may look like a fat package but at the end of day what matters is “WHAT DO YOU GET IN HAND AND CARRY HOME”.

So much time, effort, energy is spent on crafting schemes which would somehow circumvent the statue, law, rules and keep employers away from clutches……………..

While an establishment won’t mind paying fat fees to its maverick consultants who devise tactics……………..it does become stiff……………when it is time to pay.

The thought process is “amounts paid to such craftsmen who prepare and devise the schemes is one time investment………..investment for future……….investment that shall fetch long and rewarding returns……………………………….”

There are threads to suggest that guaranteed wages/basic wages are being reduced and variables are being added in annual/monthly remuneration……………

In the present case presented by Mr. Rajeev: the question arises the amounts under the head ‘Incentive’ is “GUARANTEED AMOUNT” or “NOT GUARANTEED AMOUNT” ?????????????

It is felt that this is a guaranteed amount. Even if it is not made part of wages…………………

It is felt so for specific reasons::::::::::: The employee is eligible for Incentives as stated in appointment letter/contract of employment drafted by employer, issued to employee by employer, signed by both employer and employee and accepted by employee. Thus it can very well be treated as an amount promised by employer to employee of course there might be some standards set by employer for employee::::::::: like to earn promised wages, employee has to on the job and work…………………if employee is absent, he is not entitled for the wages during the period of absence…………….

Is incentive stated in CTC sheet also? If yes it is another evidence of contractual obligation to tender the payment. The condition levied by employer in current case can be termed arbitrary, unconscionable………………

The employee has qualified by delivering performance in the period set by employer for employee, as per parameters for performance set by employer for employee: Target Vs performance, KRA’s and whatever else it is…………..

You have posted that:

“as per the policy the employee has to be in the company while payment of the incentive so the employee either on notice period or resigned will not get the incentive.”

This is nothing but sheer nuisance.

The question arises;

- whether printed version of such policy has been circulated/ supplied to employees? Gossip and rumor can not be policy, rules………………..

-If the employee has achieved the target say a sale figure, and there is no return of stock from market, there are no fake orders, fake invoices, and all payments have been realized to company, the payment of incentive should not be denied.

If denied this may be treated as an attempt to deny the promised payment and an attempt to defraud……………………………

-Anything that comes to the mind of employer need not necessarily be treated as pious, sacrosanct, lawful, holier than thou, enforceable and on the contrary it might be unconscionable…………………….unreasonable…………………illogical…………..

Why an employee should be penalized for leaving the company. On the top of that company and its advisors want to give the denial a legitimate shape by flaunting some policy………………The conduct is condemnable.

Does this employer want to levy a FINE for leaving the company? The appraisal is conducted by employer::::::::: and employer has the discretion of declaring the appraised employee from ‘EXCEPTIONAL’ TO ‘ZERO’  although when monetary amounts get involved the denial to pay has its own consequences………………………If the intentions are malafide it has its won imlications…………………….

The INCENTIVE is designed and paid for past performance and not future expectation…………………………….If the employee has decided to resign it does not mean that employer shall swallow the fruit of his labor……………….and use the amounts payable to employee for some other purpose………………………

WHAT HAPPENS IF EMPLOYER DECIDES TO TERMINTE A PERFROMING EMPLOYEE DURING THE INCENTIVE PERIOD……………………………THE TERMINATED EMPLOYEE ALSO BECOMES INELIGIBLE………………….AND THE AMOUNTS WHICH ARE FRUIT OF HIS LABOR ARE POCKETED BY EMPLOYER……………..ON THE ADVISE OF HIS ADVISORS…………………

It has been seen sensible employers agree to pay even pro rated incentives even if the employee leaves in between………………….

Therefore employee may try by approaching the good offices of appointing authortiy,MD, Chairman, Compnay Secretary..................

There are some divisions, disciplines, employees who contribute more than others……………

Such employees contribute to a great extent to fetch revenues, profits and thus bread and butter not for themselves alone but for others also ( and BIRYAANI for the employer)……………….

The company has benefited from the efforts of the employee in the current period and shall continue to benefit greatly in future too……………………..

While company wants to continue to accrue benefit from the current performance of the employee, currently and in future too, it wants employee to surrender the amounts and the fruit of his labor: as a parting gift. On the top of that company and its advisors want to give the denial a legitimate shape by flaunting some stupid policy.

This is nuisance, what else.

However let us make an attempt to understand the thought process of the employer and its advisors/line managers/HR behind such subconscious decisions……………………………

These men feel that employee who has decided to quit/has quit shall not fetch any return on amounts paid by the company in future…………………………

During the period of performance set by employer for employee: employee is expected to deliver performance beyond normal standards i.e; of exceptional standards, by exerting, stretching and what not……………………….

These men in company may feel that the incentive is an investment for future and a tool to retain performing/able/good employees and amount should be paid to only those employee who stay……………….however the amounts can not be denied to employee who has been on board throughout the period of performance set by employer.

The question arises:

- why an amount not be disbursed for say……………..3 months from end of period of performance e.g. Jan13-Apr13 in this case?

-why an unconscionable condition like an employee who is on notice period (during period of performance or during period of disbursement) disqualify?

Notice period is counted in period of service. An employee who works during notice period is eligible to get wages, notice pay if employer chooses to terminate, has to tender notice pay if there is a shortfall in notice period………………

-

Isn’t it that such conduct of employer (on the advice of his advisors) shall cause alienation amongst other employees????????????????????????

Employees do watch such incidences!!!!!!!!!!!!!!!!!!!!

Employees do brand the employers as violator of promise and contractual obligations!!!!!!!!!!!!!!

Let us look at some other points:

>>>>Payment of Wages Act (Applicable to all employees drawing wages as per def. of wages in the Act, up to Rs.18000/pm):

2. Definitions.-

3*[(vi) "wages" means all remuneration (whether by way of salary, allowances or otherwise) expressed in terms of money or capable of being so expressed which would, if the terms of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, and includes--

(c) any additional remuneration payable under the terms of employment (whether called a bonus or by any other name); (d) any sum which by reason of the termination of employment of the person employed is payable under any law, contract or instrument which provides for the payment of such sum, whether with or without deductions, but does not provide for the time within which the payment is to be made;

3. Responsibility for payment of wages.-

4. Fixation of wage-periods.-

5. Time of payment of wages.-

{FNF wages should be paid by usual pay day}

7. Deductions which may be made from wages.

8. Fines.

13A. Maintenance of registers and records.

>>>> Designation alone does not decide employee is a workman or not.

Your lawyer may opine that you are covered within the definition of ‘workman’ as in ID Act, or as ‘employee’ as in Shops and Establishments Act of the state.

In such a case employee can approach the Labor Inspector, Inspector under Shops and Establishments Act, for unpaid amounts. One of the duties of the Inspectors is to ensure all dues to the employee are paid.

{ e.g: Delhi Shops and establishments Act: 37. Powers and duties of the Inspector: (b) Duties of the Inspector: (i)  that in dispensing with the services of an employee the provision of the Act and Rules have  been  complied  with  and  no  dues  payable  under  the  Act  or  Rules  have  been withheld; }

The employee covered by the enactments is protected to that extent.

Or the employe has the option to approach civil court.

You may also check if the company has its certified standing orders and has extended these to your designation. The standing orders should be displayed near entrance/on notice boars and should be supplied to employee against a nominal payment say Rs.10/-

The employee or anyone can obtain certified copy of standing orders from certifying officer usually DLC in o/o Labor commissioner at location of redg. office f the company by tendering a fixed payment.

There are threads indicating that employees have lodged criminal complaint under Sec 406, 420 and also that employee can treat unpaid wages as debt on employer approach employer as creditor. e.g;

https://www.lawyersclubindia.com/forum/details.asp?mod_id=72011&offset=1#.UboDXNhVMgt

 There are many threads which you may find relevant and useful:

e.g;           

https://www.lawyersclubindia.com/forum/Employer-cheated-me-on-f-f-settlement-need-advice-83024.asp#.Uc67HTuAqWM

https://www.lawyersclubindia.com/forum/Salsry-on-hold-83258.asp#.Uc67STuAqWM

https://www.lawyersclubindia.com/forum/Salary-not-payed-82310.asp#.UboA-dhVMgs

https://www.lawyersclubindia.com/forum/Salary-not-payed-82310.asp#.Ubc5P_lVPxp

https://www.lawyersclubindia.com/forum/Employer-not-paying-salary--82331.asp#.Ubc5qflVPxo

https://www.lawyersclubindia.com/forum/Non-payment-of-salary-81896.asp#.UbAThNKAqWM

https://www.lawyersclubindia.com/forum/Full-and-final-settlement-not-paid--76066.asp#.UbAUUNKAqWM

https://www.lawyersclubindia.com/forum/Non-payment-of-full-final-sattelment-81866.asp#.UbAUwNKAqWM

https://www.lawyersclubindia.com/forum/Neither-resigned-nor-terminated-salary-unpaid--81683.asp#.UbAVCNKAqWM

https://www.lawyersclubindia.com/forum/Wages-not-paid-by-employer-81628.asp#.UbAVHdKAqWM

 You may proceed as deemd fit at your end.

Hi Mr Doab

Thanks for the details, pls further let me know that can I file the case from my native place (Lucknow) but  the company is in Delhi & I reside in Faridabad so don't know the lawyers in Delhi.

The employee can agitate at last location/HQ in the company, location of redg. office of the company, location of jurisdiction of courts as stated in appointment letter.

The designation given to you is manager. The company shall scream for ‘Specific Relief Act’ and jurisdiction of courts.

Before you proceed approach a competent and experienced labor consultant/service lawyer, spend quality time, show all docs, give inputs in person, understand the merits and proceed under expert advice of your lawyer.

Give an opportunity of good offices of the company by submitting a notice from your end, followed by legal notice. Sometimes legal notice helps to drill sense into the heads.

Ask your lawyer to include the line managers/HR by name amongst the noticees…………….......and also cover that you have rendered unblemished services so that these guys do not dare to post comments to malign in personnel file and in future.

If you wish to avail the services of a LCI lawyer, you can conduct search at:

https://www.lawyersclubindia.com/lawyers_search/#.UdL4VDuAqWM

Your near and dear ones can also guide you to a lawyer.

You may proceed as deemd fit at your end.

Hello,

I am having somewhat similar situation. I was employed to company for a year they paid perfomance to all the employee who were excellent in review. I was part of that and an Payslip is also uploaded to my payroll account. Yet now the company is denying to pay it stating it is not released for resigning employee. 

I want to know i had already submitted the resignation before the payslip was generated, if the payslip is generated shouldn't they pay? If so what should i do now?