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Waseem (Deputy Manager- IB)     17 August 2014

Variable pay in full n final settlement

Hello Experts

My case is as below.

I have worked for a company for 30 months before resigning in  first week of April 2014.

I served a notice period of 24 days  against the agreed 30 days as per my employment letter. However,  transition was smooth and everything was comfortably settled.  My concern is the payment of Variable Pay ( approx. Rs.100000)  which was due in march 2014. for financial year 2013-14. the HR  department had promised the below.

1. Experience letter and Relieving Letter

2. Full Payment of Variable Pay

    (HR says its  Performance Based, However my appointment letter does not state such condition) 

3. Full salary of April 2014 ( Approx. Rs.80000)

4. Payment against Earned Leaves i.e.  21 days ( Rs.56000)

the amount due  is approx. Rs.236000.

HR promised me to clear this payment within a week time.

Despite my regular reminders and and continuous mail, giving the above mentioned calculation, i could not get any reply from HR for good 4 months.

 In  the first week of August 2014, i was informed that a Cheque of Rs. 111416 is prepared and i have to accept this as full and final settlement of all my dues. they have also send me a  undertaking in the standardized format to fill the cheque details. wherein i had to sign the acceptance. i have refused to sign the same and asked for the reason of non payment of Variable pay.

When i asked about the reasons of difference in due amount and the amount of cheque, HR has informed me since my performance was not found to be satisfactory during the last year, i am not eligible for variable pay.  Also, My experience letter and relieving letter will be provided only once i accept this amount as full and final.

My questions are

1. My appointment letter / Increment letter is silent on the variable pay being performance based.

2. Can and employer hold experience letter and Relieving letter of ex employee? i am planning  for jobs outside India, How important is this document to me? What if i get a job and asked to submit this document? Can i go for litigation in such circumstances?

3. If my variable pay is performance based, which is not true, how can it be zero and i being working in the company for full financial year? Thats means my company retainsthe non performing employee for whole year without any warning and notice.

4. should not HR have to revert with this information on mail when i send my due amount calculation to them for the first time in April 2014? I clearly mentioned the variable amount.

5. why did they promise me  full  variable pay during notice period?

I need your advices to proceed with this case.

Its been over 4 months since i am chasing  my ex employers for settlement of these issues.

Regards

Waseem

 



Learning

 1 Replies

Kumar Doab (FIN)     17 August 2014

1.    Declinature (verbal) is breach of T&C inserted by employer in appointment letter by HR.

Escalate to appointing authority,MD,Chairman and let them decline.

2.    NO. The tactics being applied can be termed coercion/intimidation/threat………………..Record all such statements (audio/visual) and narrate in writing later at appropriate time.Yes it is required. Yes you can. The employer and its HR personnel may play another card of BGV. YOU shall need  to handle it.

3.     As per appointment letter issued to you it is not performance based. You may claim it as debt on employer. You may accept other payouts under protest (written) after you have built enough record in writing under proper acknowledgment.

4.     HR is duty bound to reply on everything.

5.     They have breached the T&C.

 

You may approach a competent and experienced Labor Consultant/Service lawyer and proceed under expert advise of your lawyer.


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