Variable compensation
Sen
(Querist) 22 May 2013
This query is : Resolved
Hi
My CTC has some amount attributable to "Variable Compensation". The company policy is to pay Variable compensation every 6 months e.g. Amount due from April to September is paid along with October salary on 31st October and amount due from October to March is paid along with April salary on 30th April. If any employee leaves and not on the rolls on payout date i.e. 31st October or 30th April, company does not pay him / her the due amount of variable component.
So, if an employee has left the organization in the month of Feb, even though his variable compensation is due for for 5 months, he's not being paid his due share.
I want to have an advice whether employee is eligible to claim his due share of Variable compensation till the date, he was associated with the organization. Is it tenable in the court of law. If eligible, what action should be taken to recover the amount.
Raj Kumar Makkad
(Expert) 25 May 2013
This issue cannot be agitated before any court of law as this is the wilful policy of the company clarifying each and every term openly. Mere sympathy cannot overturn the relevant rules.
