Payment of Performance Award
Prashant
(Querist) 01 December 2009
This query is : Resolved
Dear All
I am employed in limited co. In my CTC, they have shown Rs 4500/- p.m. annualised Rs 54000/- as a Performance Award (P.A.)for the year 2009-10. Now I am on probation & I am resigining. The said P.A. is not paid in monthly salary but the general policy of the co is to pay P.A. after the year is over. The HR says that PA is based on the performance of co & the performance of employee as well, the amount may vary so it may go up or may go down also. But all these things are not mentioned in my appointment letter i.e. applointment letter is silent i.e. it doen't specify this variation clause anywhere, it does'nt say that it is performance based & thus could even be zero. Similarly it is not mentioned anywhere that if the person leaves the co during his probation or before the year end, he will not be eligible to get PA.
So my question is once the amount is shown in CTC without any condition, can company refuse to pay it. In my case I feel that the co will not pay this PA to me.
Thanks in advance
Raj Kumar Makkad
(Expert) 01 December 2009
No. company cannot refuse in the given case and you have every legal right to claim it. If denied serve a notice and then proceed a civl case against the company.
