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Regarding issue of full & final settlement

(Querist) 17 April 2014 This query is : Resolved 
Dear sir,
please guide me.....

There is a issue regarding full & final settlement claim after resigning a job. I joined a company in May'13 and resigned a job in Ma'14.
In my offer letter, there was a clause for performance incentive-entitlement of performance incentive could vary based on individual performance and paid to confirmed employees only.
After that in my appointment letter, there was a clause for performance incentive-entitlement of performance incentive would depend on company as well as individual performance and will be payable to those who continue to be on rolls till 31st mar of each year and will be paid after completion of the appraisal process.

Sir, my query is that...
1) There is any remedy for me to claim performance incentive because at the time of offer letter they are not told me about the condition of PI as per appointment letter.

2)I also worked late hours, which is also not paid to me. There is any guidelines for late hours working in the labour law for harassed persons.

Please sir, help me....
Kumar Doab (Expert) 17 April 2014
This establishment and your office where you were located, is registered as: Industrial, Commercial, or Small Enterprise?
You and redg. Office of the company is located in which state?
You had submitted notice of resignation of resignation with immediate effect and what was the notice period tendered by you?
You had submitted notice of resignation or resignation on which date and it was accepted on which date and on which date you were relieved?

Whatever be the conditions good offices of the employer: appointing authority, MD can waive off!
Represent to them and do not remain stuck up with line management, HR only!
Were you asked to leave current employment in hand at the time of making offer of appointment and were you out of current employment on the day you joined?
Was the appointment letter issued on the day of joining or later?

Performance Incentive; You have signed the acceptance of T&C in appointment letter on the dotted line. You could have not signed declining to accept the particular T&C. YOU could have negotiated the T&C inserted in appointment letter drafted by employer. Such T&C could have been amended after proper negotiation. T&C inserted in offer letter or even appointment letter and in any other communications later are not sacrosanct and are negotiable and should be negotiated!
Smart employees develop exceptional levels of negotiation, persuasion, persistence, reasoning skills.
These skills can be acquired.
Performance incentive is for performance……………………………performance for a period say Q1, Q2,Q3,Q4………………….annual, half yly etc. If employee has performed in that period he/she is eligible.
The company has added in condition of payment……………………………that payout shall happen if……………………employee is on rolls by March.
You need to find faults…………………..and you need to reason.
The amount earned is also fruit of labor. After all company has offered it to improve upon its revenue, profits, market standing, ranking and what not! The employees have been stretched to extra ordinary limits.

All payouts must be paid within reasonable time. The company require some time on some reasonable grounds e.g. payment of invoices from market, stock return if any etc………………………and time for calculation, financial journals to be passed…………………….all of it within reasonable time., say Q1 incentive should be paid in 2nd month of Q2 or say 1st month of Q3! Annual incentive by 2nd month of next financial year……………………


The PI is having component of Individual performance, Group Performance, all of which would have been computed by now!
Condition of being in employment on the days of appraisal part is beyond understanding and may not satisfy logic.

The reasons are well understandable for such employers! The PI is internally considered as cost! These are not conceived as award/reward by HR and Line Managers and employers! It is believed that it should not be paid as this would be a wasteful investment with no ‘Return on Investment’ in case of an outgoing employee.
It shall not be paid easily.
Create enough noise.
Negotiate and agree for pro rated payments.
We have seen it getting paid to employees who persist.

OT; It is well explained in enactments, e.g. (Name of your state) Shops and Commercial Establishments Act……………beyond 8hrs/day:48 hrs/week OT should be paid by employer on his own along with wages on pay day. Employer has to maintain proper record of OT.

Go thru standing orders applicable to establishment and extended to your designation and section on OT. Employer is personally held responsible for faithful observance of standing orders.

Falsification of record is offence.
Stake a claim for OT in writing!
Find gaps, achieve some handle and put your feet on the tail.
If you are unable to handle it on your own find a smart lawyer and entrust it to your lawyer.
Lawyers are skilled to handle such matters and may resolve without need for litigation.
Rajendra K Goyal (Expert) 17 April 2014
whether any confirmation letter was issued to you? If yes you are entitled.

However you should lodge your claim to the company in writing.

if your designation was not covered for OT payment you are not entitled.
Dr J C Vashista (Expert) 18 April 2014
Well explained by expert Mr. Kumar Doab ji. I agree and appreciate his detailed reasoning and advise on the query, although this is a Social Service Platform.
malipeddi jaggarao (Expert) 18 April 2014
I personally feel, you better give-up and forget!
T. Kalaiselvan, Advocate (Expert) 18 April 2014
agreed with the experts.


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