Keshav (Director) 13 November 2014

Unpaid variable pay

Dear Sir / Madam,

This query is about non-payment of my variable pay from my company.

I joined a software services startup in March 2014 as Director to head their software business. I was supposed to receive variable pay every month alongwith the fixed pay salary, as mentioned in their signed offer letter. However, except a token payment that was done several months after I joined, there is no other payment that has been made till date. They have started imposing new terms & parameters after I joined the company. I have refused the new terms & parameters every time they pushed me for that. I have emails with my refusals.

Since I was completely frustrated of following up with them and their non-payment of variable pay made to find another job and I have resigned from the current job. My release date is sometime next month. Even now, they are trying to pushing me to accept new terms & parameters which I have consistently refused.

My questions are:

1. For the non-payment of variable pay, will it be treated as non-payment of my salary?

2. Do I have a right as per the labour law to seek help from the court to get the money that I am supposed to legitimately get?

3. Within how many months of my exit date do I need to file a case in case of non-payment of the variable pay?

4. Can they hold my relieving letter as I am not agreeing to their new terms?

5. Can Lawyers Club India help me connect to brilliant lawyers who can take up my case?

Request for your kind support and help on the above questions. I can pay the necessary fees as applicable.

Regards,

Keshav

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6 Replies

Anil Upadhyay (Lawyer) 13 November 2014

Please reveal all the facts related to your package, joining terms, job profile and others to get proper remedy.

advocateanilupadhyay@yahoo.com

Kumar Doab (FIN) 13 November 2014

If variable pay is stated in job offer/appoitment letter/CTC sheet then it is promise. Variable pay may not be necessarily part of Wages but if committed and if you have fulfilled all conditions attached with then you have toiled for it and it is fruit of Labor and should be paid. It should be paid on the promised date. Relieving letter signifies that nothing is pending at the end of emoloyee. Hence you should affirm that No Tasks/handover is pending at your end should obtain acknowledgement confirming it. Don't leave any room for the company to charge you on any count. If you are a director for namesake then you otherwise you may not be covered as Workman. You may succeed to push breach etc and file u/s 406,420.......winding up petition.. As rightly suggested by Mr. Upadhyay the lawyer that has examined all doc's and input can advise you the best. Let your lawyer now structure all of representation and build record and defend your interest.

Keshav (Director) 14 November 2014

Dear Mr. Upadhyay,

Thank you for your kind response.

I will send you the scanned copies of all the documents soon, my scanner is not working.

Regards,

Keshav

Keshav (Director) 14 November 2014

Dear Mr. Doab,

Thank you for your kind response.

I have got a verbal commitment from my employer today that they will pay me variable pay but not as per the terms of the offer letter but based on the actual realization of the business, essentially they are trying to bring in some excuses to pay me as less as possible.

If I dispute the variable pay calculations, do they have a right to hold back my relieving letter?

Director title is in no way related to "Board of Directors" but as Software Director. What would be my rights in this scenario?

Thanks in advance for your kind support.

Regards,

Keshav

Kumar Doab (FIN) 15 November 2014

The Amount termed as Variable Pay was promised to be paid every month......but was not paid.He.ce amount stand as unpaid hence due/debt on employer. If you have handed over the charge/accounts/assets etc and have performed your role in handover, FnF/NOC/NDC .....then nothing is pending at your end hence all doc's should be released on last day/date in office. The company may express its dissatisfaction on some a/c and may justify the withholding and may claim .......say some loss/recrecovery etc......hence download all policies/rules and Relevant Record...... Mention that you have always referred to negotiated and accepted T&C and variance by employer from it and errors committed by .......I'm calculations....... Refrain from accepting FnF statement/settlement in writing ......rather decline in writing citing errors The issue has been discussed based on limited understanding possible in online discussion....... For more prefer in person consultation with your Labor Law Consultant/ Service matters lawyer and show all doc's on record and give inputs in person....