LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

KESHAV MAHESHWARI (DY MANAGER)     18 May 2015

Performance incentive - company denying to pay the same

I am presently working with an NBFC. I joined this company on September 2, 2013. I tendered my resignation on April 17, 2015 and will be serving a notice period of 90 days. In my package, I have a portion of package as variable incentive of Rs. 120,000/-. I served the whole financial year 2014-15 on company rolls and had resigned only after completion of full year. However, my company is denying to pay my Incentive by saying that I am a resigned employee and I will not get any incentive due to that.

Conditions mentioned in my offer letter for Incentive is as below:
Incentive

Incentive is payable for the period April to March. Those who join during the financial year (i.e. April to December), incentive is paid on Pro Rata Basis. The criteria for payment of incentive will be communicated to you on joining.

Incentive will be paid on annual basis. The payment of such incentive will be with in 90 days of the end of the year. Incentive/ Variable pay for a financial year (i.e. April - March) is payable only to employees who:

* Join the company on or before December 31st of that financial year

* are on the rolls of the company as on date of payment of incentive

Employees who have joined after December 31st or who have submitted their resignation and are waiting to be relieved will not be eligible for incentive.

 

The offer letter is signed by Vice President -HR and myself. 

Request your help and guidance to get my incentive from company.

Further more, why companies are drafting this kind of policies which affects employees at large. Is it possible to take any legal actions against comapny?



Learning

 12 Replies

Kumar Doab (FIN)     18 May 2015

The variable incentive is fruit of labor.

You have worked for whole period as stated by you.

You have posted that:

“* are on the rolls of the company as on date of payment of incentive

Employees who have joined after December 31st or who have submitted their resignation and are waiting to be relieved will not be eligible for incentive.

Obviously the response of the company is as per this clause.

Such T&C are arbitrary, unfair,biased, heavily inclined towards employer,deterimental to employee, masked to decline payment of fruit of labor.

 

The notice period of 90 days may not necessarily be applicable in your case.

 

You should provide full information!

What is this establishment: Commercial,Industrial?

What is its line of business:IT,ITeS,banking etc?

How many persons are employed in it?

The Redg Office,Corporate Office of the company, and your reporting office was located in which state?

What was your designation and nature of duties?

Do you have leave policy, HR policy,Service Rules and Regulations,Conduct and Discipline Rules that are mentioned in the appointment letter?

Does company have its CO (certified standing Orders) and is your designation covered by CO? Or do Model Standing Orders apply to it?

Was any appointment letter,salary slip of each month,PF number with a/c slips,ESIC card,Form16 given to you?

Did you resign in writing under proper acknowledgment, and mention NO tasks are pending at your end and to whom you should handover the charge?

Has acknowledgment of notice of resignation, supplied to you?

Are you a member of any employee’s/Trade Unions?

What was your monthly salary?

1 Like

KESHAV MAHESHWARI (DY MANAGER)     26 May 2015

Thanks for the response sir.. Sorry for delay,as I was having some health issues.

Pointwise reply to your points is as below:

What is this establishment: Commercial,Industrial?

:: Commercial (A Non Banking Finance Company)

What is its line of business:IT,ITeS,banking etc?

:: Banking and Financial Services Industry (BFSI)

How many persons are employed in it?

:: Around 2000 Onroll and 7000-8000 Offroll

The Redg Office,Corporate Office of the company, and your reporting office was located in which state?

:: Regd Office and Corporate office Located in -- Chennai (Tamilnadu)

:: Reporting Office Located in -- Ahmedabad (Gujarat)

What was your designation and nature of duties?

:: Designation - Deputy Manager (Internal Audit),

:: Nature of Duties - To perform Internal audits of Company branches and conduct Fraud Investigations

Do you have leave policy, HR policy,Service Rules and Regulations,Conduct and Discipline Rules that are mentioned in the appointment letter?

:: Leave Policy and Many other policies were given post joining

:: Service Rules and Regulation, Conduct and Discipline Rules mentioned in Appointment letter

Does company have its CO (certified standing Orders) and is your designation covered by CO? Or do Model Standing Orders apply to it?

:: Not Aware of this. Please tell, from where I can obtain information about this

Was any appointment letter,salary slip of each month,PF number with a/c slips,ESIC card,Form16 given to you?

:: Yes, The same was uploaded on online portal of company every month without fail

Did you resign in writing under proper acknowledgment, and mention NO tasks are pending at your end and to whom you should handover the charge?

:: I resigned by writing a mail. Acknowledgement of the same is not provided, however my boss intimated the same to HR and resignation is updated on HR site. Handover of Charge is not possible till new employee joins in place of me.

Has acknowledgment of notice of resignation, supplied to you?

:: Acknowledgement not given

Are you a member of any employee’s/Trade Unions?

:: No, not a member of any such union. No such union exist in my company

What was your monthly salary?

:: On hand it was around 30k

Kumar Doab (FIN)     26 May 2015

 

You may claim incentive full April-March……………and pro rated thereafter………….as mentioned in extarct posted by you.

 

Standing Orders (certified/Model) can be obtained from Head-HR/MD etc against a nominal payment say Rs.10/ or from certifying officer (CO) that might be DLC at location of Redg. Office of the company……………or thru DLC at your location against a nominal payment  say Rs.3/page.

 

If it is covered or registered under  Shops and Commercial Establishments Act then Gujarat followed Bombay Shops and Commercial Establishments Act and has now Gujarat Shops and Commercial Establishments Act that is available on Dept of Labor website of Gujarat………………….

 

Your counsel may opine that you are covered by the def. of ‘Employee’ as in this Act (and even as ‘Workman’ as in ID Act) and notice period is max.30 days…………..

It is obvious that Hr won’t budge due to internal policies of employer for HR and good offices of appointing authority/MD may grabt relief or you may have to approach Inspector appointed under Gujarat Shops and Commercial Establishments Act/Labor commissioner or civil court.

Trade Unions like CITU/INTUC/AITUC/BMS etc may also help you.

 

 

 

 

   Download email resignation and copy forwarded by Manager and at HR portal…

1 Like

Kumar Doab (FIN)     26 May 2015

If no one joins in your place charge should be taken by Manager/HOD or employer himself.

KESHAV MAHESHWARI (DY MANAGER)     26 May 2015

Thank you very much sir. I am sure this will be very useful.

One more thing, how standing orders will help me to get my incentive?

 

KESHAV MAHESHWARI (DY MANAGER)     26 May 2015

Further, also suggest me what should I do right now?
They had not considered me for PMS (Performance Management) and company will be giving incentive to all employees anywhere between July 1 to July 31. So, shall I wait till that time or shall I proceed with my action. As I had a word with Regional HR and my immediate superior, both of them denied payment of Incentive.

 

Thanks In Advance

Kumar Doab (FIN)     26 May 2015

Your query on how to get standing orders was answered.

 

If standing orders are certified and your designation is covered then you may check if there is anything pertaining to payouts................

In any case study yourself about standin orders and be properly informed for future reference.

 

Employer personally is held responsible for faithful observance of standing orders.

 

Kumar Doab (FIN)     26 May 2015

Aparently your transaction with Regional HR and your immediate superior is verbal.

 

As already pointed out  they were most likely to deny due to employer's internal policy for them and to avoid such thing becoming an internal precedence.

 

However document the denial in minutes, under proepr acknowledgment with a copy to you.

Their denial gives you opportunity to escalate to good offices of appointing authority,MD,Chairman thru gentle and well reasoned representation.

Remain amiable.

 

Build suitable written record while in employment.

 

Decline to accept FnF statement.

 

Approach your able lawyer if you are unable to handle on your own.

 

1 Like

Law Aspire (Legal)     13 July 2015

In MP State ,  is there any standing Orders

Kumar Doab (FIN)     13 July 2015

@ Rachit Inanai,

The certifying Officer (usually  DLC in O/o Labor Commissioner in case of states other than UT) can provide you precise information if any exmption has been provided by the state of MP to the particular trade/industry/establsihment, you want to know.

Law Aspire (Legal)     12 February 2016

is there any other way to get standing orders for MP state, is it available onine?

Kumar Doab (FIN)     12 February 2016

The standing orders might be available on Dept. of labor website or you can visit the o/o Certifying Officer that might be DLC or you can buy from market.

Model Standing Orders can be searched thru internet/google.

 

Or request a counsel practising in labor law.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register