Companies not giving variable pay
ChandanLawyersclub
(Querist) 20 July 2017
This query is : Resolved
Dear Experts,
companies at senior level give 15-20% variable pay(80% fix+20% variable). Variable pay, which they use to pay to any one who completes financial year with company. Suppose one resigns and gets relieves after 31st March will get variable pay. Company use to send cheque to home, once it is declared.
From some years my company has changed the policy, variable pay will be only given if you are on roll on the date of disbursement. Normally they disburse it in July- august to reduced cost , as much you delay , leaving people will not get.
Since it is pay of previous financial year, this rule was made by some smart finance guy to save cost.
Is it legal for any company not to give variable pay of previous year despite employee has completed full financial year with the company. What labor law says on that.
thanks in advance
Kumar Doab
(Expert) 21 July 2017
Is this rules communicated in writing?
Kumar Doab
(Expert) 22 July 2017
Generically Speaking; The performance period is financial year and if the payment is deferred so as to compute say; some returnable etc then it should be OK.
Otherwise employer should pay after date of deferred payment.
ChandanLawyersclub
(Querist) 22 July 2017
it was communicated 3 years back verbally in one meeting, but no official mail. Earlier they use to send cheque to home. Now they eat out that money. Its big amount for senior posts. This is not ethical practice, in CTC company shows it, but latter they find means to save it.
Kumar Doab
(Expert) 22 July 2017
Do you have the written version of 'Variable Pay Policy' stating earlier provisions and your performance criteria and performance record..........
If yes base and stake your claim on it...............
Kumar Doab
(Expert) 22 July 2017
Have you not claimed on record since 3 years?
